Mercury News Article
I don't always agree with the Mercury about the real estate market but I thought Sue McAllister had some right on things to say in Friday's edition. Yes, I agree that Gilroy is the hot market right now with excellent deals not only in the very low range but also in some of the higher end homes like those located at Eagle Ridge on the West Hills of Gilroy. If you are a Buyer and looking in Gilroy, do your homework and make sure you have a great agent - this is a competitive market and there are many multiple offer situations. Note - the good deals are not a secret and if you can figure it out, so can the other Buyers on the look out for a good deal.
Bank Owned Properties and Short Sales are not without their cost even though the market value is usually a good deal. Banks often want to use their own contracts which heavily favor them and in short sales, the Bank makes all the decisions and both insist on as-is sales (no repairs).
The article in the Mecury also talks about the median price being lowered throughout Santa Clara county and part of the reason is the run on lower end homes (it's not only happening in Gilroy, we're having multiple offers on low priced homes in Morgan Hill also and I hear in San Jose as well). But the other piece of the puzzle is high end homes involve risks on many levels. Lenders are just not that excited about jumbo loans (which limits the amount of Buyers). These are also the people dealing with losses in stock values and concern about job stability. Put those factors together and you have a median price home 41% lower than a year ago.