How’s the real estate market?
The number 1 question I get asked is “how’s the real estate market?” That question isn’t quite as easy to answer as you might think. Why you ask? There are many things to consider and real estate is very “localized” in terms of area and price range, and if you’re buying or selling.
For example, in Morgan Hill, the market under $500,000 (and especially under $300,000) has been red hot over the last couple months with many properties selling very fast with multiple offers above list price. If you ask these sellers they’ll tell you the market is GREAT, but if you ask one of the buyers who didn’t get the house they wanted and they’ll likely tell you market is TOUGH.
We have been working with a young couple trying to buy their first home and they’ve been lost 2 homes to cash buyers. They would definitely say it’s a tough market.
On the flip side, those cash buyers would say the market is great. Why? For starters they have cash and are able to buy homes, likely as rentals. Second, the rental market in Morgan Hill is fantastic for landlords with usually less than 5% vacancy rate. As of this writing, there isn’t a single Morgan Hill rental available in the MLS.
So what does it all mean?
- SELLERS – Still a great time to sell, especially in the under $500K price range. Higher price ranges are selling well, but not quite the excitement as the lower price ranges.
- BUYERS – The low inventory has made it tough as many properties are getting multiple offers. However, the historic low interest rates still make it a good time to buy.
- INVESTORS – Low vacancy rates and increasing rents make it an ideal time to invest. Remember, as an investor your decision to buy is strictly financial, the numbers have to make sense, and you should be looking at cash flow, not appreciation. Contact us for more info on investing and our property management services.
$616,796 – Average List Price
$598,221 – Average Sales Price
$264.59 – Average $/Sq. Ft.
56 – # of Sales
52 – Average Days on Market
36 – # of New Listings
$848,095 – Average List Price
June 2012 Housing Statistics – Morgan Hill – Townhouse/Condo
$253,940 - Average List Price
$257,880 – Average Sales Price
$188.85 – Average $/Sq. Ft.
5 – # of Sales
99* - Average Days on Market
2 – # of New Listings
$389,500 – Average List Price
*Of the 5 sales, one property was on the market for 372 days throwing the average off. Removing that property would bring the average days on market down to 31.