Morgan Hill land along the Uvas RiverHow is the Morgan Hill real estate market? Signals indicate it is an active seller’s market, though it has been somewhat milder than other parts of the county. Overall we’re past the most extreme peaks and dips, but a backlog of demand and low inventory continues to put pressure on the whole market. Below are some quick points from our RE Report (link below).

  • The average sale price for houses in March was $1,613,200 (+24.1% from the month before and +14.2% from a year ago)
  • The median sale price for single family homes was $1,525,000 (+17.3% from the month prior and +17.3% from this time last year)
  • The sales to list price ratio for homes dipped to 102.2% (-0.8% from the month before and +1.3% from last year). 
  • Days on market picked up the pace month-over-month, averaging 22 days, and market absorption sped to a 24 day average.

It’s still a seller’s market with plenty of competition for the best homes.

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 usually experience a lower demand than other parts of Santa Clara County which are either tech magnets, closer to big businesses, or a quicker commute around the Bay Area. So if most of the Silicon Valley has a sale price to list price ratio of anywhere from 105% to 110%, you might see closer to 97% to 103% here. Not exact numbers, just to say it’s generally lower here making the home buying conditions calmer for weary buyers, though still a sellers market.

Now let’s get into the data.

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.

Morgan Hill Real-Time Market Profile

 

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 March pending and closed sales grew while active inventories held stable. Homes sold above asking price on average and with shorter days on market compared to last month and last year. The market is red hot and distinctly hotter than this time last year.

No doubt it’s a clear seller’s market, but compared to other parts of the county it’s noticeably easier for buyers to get their foot in the door here in south county.

 

Trends At a GlanceMar 2024Previous MonthYear-over-Year
Median Price$1,525,000 (+17.3%)$1,300,000$1,300,000 (+17.3%)
Average Price$1,613,200 (+24.1%)$1,300,370$1,412,760 (+14.2%)
No. of Sales25 (+66.7%)1525 (0.0%)
Pending28 (+7.7%)2616 (+75.0%)
Active20 (0.0%)2035 (-42.9%)
Sale vs. List Price102.2% (-0.8%)103.0%100.9% (+1.3%)
Days on Market22 (-31.7%)3330 (-26.7%)
Days of Inventory24 (-35.7%)3742 (-42.9%)

 

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 be 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 more significantly fewer available listings. Demand remains high!

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!

Morgan Hill Condo Real-Time Market Profile

Morgan Hill condos and townhomes are showing a strong seller’s market with recent rise in market action and severely low inventory, according to the latest update of this Altos Reports. In recent months these properties have been even hotter than the single family home market! However this data 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 so few sales, a single out-of-the-ordinary listing could throw the whole chart out of whack! So take this data with a pound of salt.

Active inventory is almost nonexistant! Pending sales and active inventory grew while closed sales slipped a hair behind month-over-month. With practically no inventory or sales these swings may have more to do with seller activity (or lack thereof) than a shift in buyer interest or market values. Overall it remains a sellers market with significantly more demand than available stock in Morgan Hill’s condo and townhome market.

 

Trends At a GlanceMar 2024Previous MonthYear-over-Year
Median Price$990,085 (-1.3%)$1,003,000$853,500 (+16.0%)
Average Price$985,042 (+3.9%)$948,400$864,833 (+13.9%)
No. of Sales(-20.0%)5(-33.3%)
Pending(+50.0%)4(+100.0%)
Active(+66.7%)311 (-54.5%)
Sale vs. List Price101.3% (+0.7%)100.5%100.2% (+1.1%)
Days on Market14 (-20.1%)1727 (-48.4%)
Days of Inventory38 (+123.2%)1755 (-31.8%)

 

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 with a range of roughly 15-35 days on the market, but a couple of price points converged around the 20-day mark. Remember to disregard data from March to May 2020.

Inventory:

 

What's nextWant 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.