How is the Morgan Hill real estate market? Signals indicate it may be starting to warm up again. Overall the wild extremes of last spring are no more, but it remains an active market that’s a little milder than other parts of the county. Below are some quick points from our RE Report (link below).
- The average sale price for houses in February was $1,383,290 (-5.9% from the month before and -17.6% from a year ago)
- The median sale price for single family homes was $1,407,500 (+7.9% the month prior and -11.3% from this time last year)
- The sales to list price ratio for homes rose to 98.0% (+1.6% from the month before and -8.2% from last year).
- Days on market slowed significantly month-over-month, averaging at 55 days.
It’s still a seller’s market with competition for the best homes and a much calmer market (and an opportunity for buyers) with the outliers.
See the Santa Clara County real estate market report (for comparison) here.
The Morgan Hill Real Estate Market
The cities of Morgan Hill and Gilroy are usually a bit less in demand than parts of Santa Clara County which are either tech magnets or closer to these big businesses. So if most of the Silicon Valley has a sale price to list price ratio of anywhere from 100% to 105%, it’s generally lower here, making the home buying conditions calmer for weary buyers, though still a sellers market. With so much pent-up demand, and possibly with buyers being priced out of other areas, this market has been showing significantly more heat than usual, but it has also been calming down a little more quickly than some other areas.
First up, the market profile from Altos Research – this is updated weekly, so check back often! You can also view the weekly newsletter through the link below, where you can also subscribe to receive this update every week in your inbox. Prefer a particular zip code instead? You can type in your desired zip in the “Search Anywhere” line and then request that particular weekly update by email.
Altos Research weekly report for all of Morgan Hill
Altos weekly report for 95037 only
Altos weekly report for 95038 only
Please note that Altos uses information on actively listed homes for sale, not closed sale data. If you compare the days on market of the active listings with the days on market of the sold properties, they will be different.
Trends at a Glance for Single Family Homes in Morgan Hill
Below is a chart with basic info, to see more click on this link to see the Real Estate Report for Morgan Hill.
Month-over-month February prices haven’t moved much, but overall prices are down more than 10% from last year. Activity is increasing, and homes that were lingering on the market for more than a month are being snatched up. All in all there’s a warming shift in the monthly trends. Looking year-over-year, the market is significantly colder than it was in 2022, in every possible datapoint!
| Trends At a Glance | Feb 2023 | Previous Month | Year-over-Year |
|---|---|---|---|
| Median Price | $1,407,500 (+7.9%) | $1,305,000 | $1,587,500 (-11.3%) |
| Average Price | $1,383,290 (-5.9%) | $1,469,570 | $1,678,230 (-17.6%) |
| No. of Sales | 15 (+66.7%) | 9 | 18 (-16.7%) |
| Pending | 39 (+50.0%) | 26 | 58 (-32.8%) |
| Active | 20 (-28.6%) | 28 | 21 (-4.8%) |
| Sale vs. List Price | 98.0% (+1.6%) | 96.5% | 106.8% (-8.2%) |
| Days on Market | 55 (+143.8%) | 23 | 27 (+100.8%) |
| Days of Inventory | 36 (-61.4%) | 93 | 32 (+14.3%) |
Single Family Home Live charts from Altos Research
The following charts are from Altos Research, updated automatically each week, using data of homes available to purchase (not sold / closed sales), for the Morgan Hill real estate market. (I have a paid subscription to this service.)
Morgan Hill houses for sale average days on market:
Inventory of single family homes available to purchase:
While inventory had been on the rise in 2022, it never got anywhere close to normal levels and doesn’t look like it will anytime soon. As always, low inventory + high demand = high or rising prices. Cooling demand caused by rising interest rates, appears to mostly be translating into fewer offers and lower sales prices, but not significantly fewer sales.
It should be noted that there’s a ton of new construction going on in the northern part of Morgan Hill, but that hasn’t appeared to be helping a severe inventory shortage!
Real estate market for condominiums and townhouses in Morgan Hill
Morgan Hill condos and townhomes are showing a strong seller’s market with higher market action than single family homes, according to the latest update of this Altos Reports. This can fluctuate dramatically with such small numbers, so take it with a grain of salt.
Trends for the condo real estate market in Morgan Hill
See the full Real Estate Report here. With just 2 sales in January, and only 3 in February making up all of the latest sales data, take these statistics with a pound of salt! Active inventory remained stable, closed sales rose a hair, and pending sales shot up month-over-month in Morgan Hill’s condo and townhome market. Compared to a year ago inventory is up while sales activity is down. It’s nowhere near as hot as it was a year ago!
| Trends At a Glance | Feb 2023 | Previous Month | Year-over-Year |
|---|---|---|---|
| Median Price | $660,000 (-32.6%) | $978,750 | $809,000 (-18.4%) |
| Average Price | $703,333 (-28.1%) | $978,750 | $790,000 (-11.0%) |
| No. of Sales | 3 (+50.0%) | 2 | 7 (-57.1%) |
| Pending | 7 (+75.0%) | 4 | 11 (-36.4%) |
| Active | 6 (0.0%) | 6 | 4 (+50.0%) |
| Sale vs. List Price | 100.8% (+0.4%) | 100.5% | 106.9% (-5.6%) |
| Days on Market | 25 (+228.9%) | 8 | 17 (+47.6%) |
| Days of Inventory | 54 (-40.0%) | 90 | 15 (+250.0%) |
Condo and Townhouse Live charts from Altos Research
The Morgan Hill condo market
List prices by quartile:
Average days on market:
This jumps all over the place, but most price points have converged on roughly 30-40 days on the market. Remember to disregard data from March to May 2020.
Inventory:
Want to buy or sell a home in Morgan Hill? It’s a great community and I work there, too! Please contact me for a no obligation, no cost, no pressure conversation to discuss your goals and how I may be able to assist you.
