Month-over-Month Changes

In May 2024, the Gilroy real estate market experienced significant month-over-month changes compared to April 2024:

  • Homes Sold: The number of homes sold in Gilroy increased sharply by 58%, with 30 homes sold in May compared to 19 in April.
  • Median Sale Price: There was a slight decrease in the median sale price, which fell by 4% from $1,230,000 in April to $1,180,444 in May.
  • Days on Market (DOM): The average DOM decreased from 12 days in April to 10 days in May, indicating quicker sales.
  • Percentage of List Price Received: Sellers received 102% of their asking price in May, up from 101% in April.

Analysis

The sharp increase in homes sold suggests a strong buyer interest, possibly driven by favorable market conditions or seasonal factors. The slight drop in the median sale price, coupled with the reduced DOM, indicates a highly competitive market where buyers are acting quickly on available listings. The increase in the percentage of list price received further highlights the demand, as sellers are consistently receiving above their asking prices.

Year-over-Year Comparison

Comparing May 2024 to May 2023, several notable changes were observed:

  • Homes Sold: There was a 21% decrease in the number of homes sold, with 30 homes sold in May 2024 compared to 38 in May 2023.
  • Homes Listed: The number of homes listed remained constant at 52 for both years.
  • Median Sale Price: The median sale price increased by approximately 5.4%, from $1.12 million in May 2023 to $1.18 million in May 2024.
  • Average Dollar per Square Foot: The average price per square foot increased by 13%, from $515 to $583.
  • Days on Market (DOM): The average DOM remained stable at 10 days for both years.
  • Percentage of List Price Received: The percentage of list price received decreased slightly from 103% in May 2023 to 102% in May 2024.
  • Months of Inventory: The months of inventory increased from 1.9 in May 2023 to 2.4 in May 2024, indicating a slight shift towards a buyer’s market.

Analysis

Year-over-year data reflects a slightly cooling market with a reduction in the number of homes sold and a slight increase in inventory. The increase in median sale price and average price per square foot suggests a continued strong demand for real estate, albeit at a moderated pace. The stability in the DOM indicates that properties are still moving quickly, and the decrease in the percentage of list price received points to a market adjusting to more realistic pricing strategies.

Price Points and Quadrants

The sales details for May 2024 were broken down by quadrants:

  • Top Quadrant: Homes Sold: 8, Median Sale Price: $1,780,000, Median DOM: 9, Average $/Sq.Ft.: $533
  • Second Quadrant: Homes Sold: 8, Median Sale Price: $1,350,000, Median DOM: 11, Average $/Sq.Ft.: $510
  • Third Quadrant: Homes Sold: 7, Median Sale Price: $1,035,000, Median DOM: 9, Average $/Sq.Ft.: $532
  • Bottom Quadrant: Homes Sold: 7, Median Sale Price: $875,000, Median DOM: 10, Average $/Sq.Ft.: $671

Analysis

The data highlights active movement across all price ranges, with the top and second quadrants showing significant activity. The median sale price in the top quadrant suggests a robust demand for higher-priced homes, with properties in this range selling relatively quickly. The average price per square foot in the bottom quadrant is the highest, indicating that even lower-priced homes are highly valued per square foot, potentially due to their location or condition. This suggests a balanced market where buyers at various price points are actively participating, making it a competitive landscape for both sellers and buyers across different segments.

Conclusion

The Gilroy market in May 2024 showed a significant increase in homes sold month-over-month, although year-over-year comparisons indicate a cooling trend. The overall increase in median sale prices and the steady DOM reflect a strong market, especially for higher-priced homes. This data provides valuable insights for potential buyers and sellers, highlighting the competitive nature of the Gilroy real estate market.

Data provided by MLS Listings and is deemed reliable but not guaranteed.