This Month in Real Estate - October 2014 Gilroy Edition

The number of home sales in Gilroy are up compared to last month but slightly down compared to last year. The good news for homeowners: The median Gilroy home price is considerably up compared to last year and even to last month we are 6% up.

The ratio between active inventory on the market and homes sold over a certain period of time is called the absorption rate. The higher the rate, the more buyer friendly is the market. Today's absorption rate of the Gilroy residential real estate market lies between 4 and 5 % which indicates a shift from the 100% seller's market with scarce inventory which we have seen in spring 2014 to a more balanced market with less bidding wars but still strong sales numbers. Many first-time homebuyers want to take advantage of the current low interest rates to become homeowners instead of renting.

All in all I would call this a win-win market in October for sellers and buyers. Homeowners are still experiencing an increase in equity and buyers have low interest rates as incentive to purchase.

Call me for a free consultation at 408.706.0671   should you think of buying or selling - no strings attached of course.

 Happy Fall everyone!