Gilroy's median home price dropped to $1.1 million last month. That's down nearly 10% from a year ago. If you've been watching the South Valley housing market, this is the number that matters right now.
Morgan Hill, meanwhile, held steady at $1.4 million. Up about 5% year over year. Two cities separated by 15 minutes on the 101, moving in opposite directions.
What the Numbers Actually Mean
Gilroy homes are moving fast. Average time on market: 22 days. The Redfin competitiveness score sits at 77 out of 100. Translation: buyers are still showing up, but they're not in the frenzy they were two years ago. There's room to negotiate. There's room to think.
Morgan Hill is a different pace. Homes are sitting for about 32 days on average. Still healthy, still moving, but the urgency isn't the same as Gilroy's. At $1.4 million median, Morgan Hill is firmly in the premium tier for the South Valley corridor.
The Gap Is Worth Watching
The price gap between Gilroy and Morgan Hill is the widest it's been in a while. Three hundred thousand dollars separates the two medians. For a family weighing both cities, that difference buys a lot: a bigger yard, an extra bedroom, or just a more comfortable monthly payment.
Gilroy is the value play right now. The schools are solid. The downtown is adding new businesses (Pour Me Taproom just opened 36 self-pour taps on Monterey Street). The proximity to Morgan Hill means you're still in the South Valley bubble without the Morgan Hill price tag.
Morgan Hill's stability is its selling point. Prices aren't dropping. Demand is consistent. If you already own there, your equity is holding. If you're trying to buy in, bring patience and a strong offer.
What We're Watching Next
Interest rates. Inventory. And whether Gilroy's dip is a correction or a buying window that closes fast. We'll keep tracking the numbers every month.
South Valley Spotlight covers real estate, local news, and community happenings for Morgan Hill, Gilroy, and San Martin every week. Subscribe free at southvalleyspotlight.com.