The median home price in Gilroy is $720,000
– 9 percent higher than just a year ago
Morgan Hill – South County home sales jumped again in March, but the housing market is considerably cooler than it was one year ago.
There were 91 single-family home sales in Gilroy and Morgan Hill in March, compared to 60 in February. In March 2005, there were more than 100 sales in the two cities. Realtors said the surge is likely seasonal, and they expect sellers to have to work harder to sell their homes. For the first time in three years, some sellers are even cutting their asking price.
“We’re seeing price reductions because of the market we just came out of,” said Susan Jacobsen, of Starritt Real Estate. “It’s been a seller’s market and now it’s a more level playing field.”
Michael Giluso, of Intero Real Estate, said he recently sold a $650,000 Gilroy home only after the price was cut three times. The nine-year real estate veteran said he thinks that prices of some types of homes will drop. When the market tilts toward buyers in coming months, Giluso said, many green real estate agents may be scared out of the industry.
“Offers are not going to roll in like a year ago,” Giluso said. “Sellers really have to find a good agent who’s going to market their homes. When prices dip, inexperienced agents who thought they were going to be rich instantly will get out of the market because there’s so much competition.”
In Gilroy, home prices continue to rise. According to the Real Estate Report, the median Gilroy home price has reached $720,000, 9 percent more than a year ago. But in Morgan Hill, the median home is fetching $825,000, off about 1 percent from March 2005.
