| South Valley Spotlight Morgan Hill · San Martin · Gilroy | April 29, 2026 |
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Read every Wednesday by 317 South Valley homeowners · ↑ 222 this month · Reach them → |
Home Front · Weekly What's moving in South Valley real estate Morgan Hill $1.20M ↓ 9.6% YoY median |
| Gilroy $1.09M ↑ 0.2% YoY median |
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| Days on market 11 / 26 MH / Gil |
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Morgan Hill is down 9.6% year over year. Gilroy is essentially flat (up 0.2%). Both markets are still moving fast: MH closes in 11 days, Gilroy in 26. Different patterns, same takeaway. Neither is crashing. |
What sold in South Valley  | 9212 Kestrel Ct Sold $988,000 · 4bd / 2ba · 1,826 sqft Recent renovation, corner lot. Sub-million in Gilroy is getting harder to find for a turnkey home. |
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 | 16870 Gallop Dr Sold $1,350,000 · 3bd / 2ba · 1,638 sqft Single-family on a quiet street, well-maintained. Closed at list. |
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 | 2481 Apple Tree Way Sold $1,408,888 · 5bd / 5ba · 3,430 sqft 2017 build on a 6,161 sqft lot. Newer Gilroy stock holds value better than the older inventory. |
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📍 The Lead Morgan Hill's downtown is in the middle of a housing fight Eight hundred new units, a five-story building taller than anything in town, and a parking system about to hit its trigger threshold. The biggest building wave in decades, and not everyone is happy. |
More than 800 housing units are under construction across seven active projects on Monterey Road and in north Morgan Hill. About one in six homes in the city is now deed-restricted or affordable. The Magnolias, a 66-unit affordable development at 17965 Monterey, broke ground in February as the tallest building in town at five stories. It got a height-limit exemption to do it. State law is the reason. SB 330 forced the city to suspend its decades-old, voter-approved growth control system. Developers who meet affordability requirements can request concessions on parking, height, and setbacks that the city has limited power to deny. The goal is 1,037 new units by 2031 to satisfy the state housing element. Parking is the flashpoint. City planning data shows downtown parking occupancy approaching the 85% threshold that triggers intervention. Once it's there, the city has to act, but most of the easy fixes are off the table. Why it matters. This story affects every homeowner and business owner in Morgan Hill. It sits at the intersection of property values, downtown character, and what the city will look like in five years. Forward this to your neighbor. |
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Gilroy · City Council May 4 95 Howson Street townhomes head to final vote Planning approved this on April 2. Units run 1,430 to 1,900 sqft with attached two-car garages. 98 parking spaces, picnic area, playground. CEQA-exempt as in-fill. Project page → |
Morgan Hill · Under Construction The Magnolias: 66 units, five stories, on Monterey Eden Housing's affordable development broke ground in February as the tallest building in MH (68 ft). Got an exemption from the 45-ft limit to do it. Eden Housing → |
Morgan Hill · 249-Unit Approval Planning Commission greenlights 249-unit complex Part of the seven-project downtown wave. Density bonus and parking concessions under SB 330. Morgan Hill Times → |
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THU
May 1 | Morgan Hill draft budget drops Online · Posted · Council May 6, town hall May 16 Budget page → |
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May 4 | Gilroy City Council: 95 Howson final vote 6 PM · City Hall · Public comment open Council agenda → |
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SUN
May 10 | Garlic Festival general public tickets 8 AM PT · $35/ticket · Sells out fast Garlic Festival → |
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THU
May 15 | Gilroy weed abatement deadline Hard deadline · Clear dead plants 30 ft from structures City notice → |
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Three wineries getting talked about after the Wine & Art Stroll Saturday's Downtown Wine & Art Stroll closed out a week of Food & Wine events with about 15 South Valley wineries pouring on Monterey Road. Three names kept showing up in the post-stroll feeds. Little Uvas Vineyard's Estate Zinfandel was the most-mentioned pour of the day. They're up off Uvas Road, open weekends. Sycamore Creek showed up in a lot of feeds with a Petite Sirah that punches above its price point. Clos LaChance brought a Cabernet that gets the Napa-quality, half-the-price treatment. The take. The South Valley wine scene punches up. If a Saturday tasting loop isn't on your list yet, three or four rooms plus lunch on a patio is the move before summer heat sets in. |
 | First strawberries spotted at the Saturday Morgan Hill Farmers Market. The Watsonville stand had them out by 10am. $5 a basket, gone by noon. Two weeks earlier than last year. |
 | Garlic Festival ticket day is a week and a half out. May 10 at 8am Pacific. If history holds, the general public release sells through in under 30 minutes. Set an alarm if you want them. |
 | The tractor show behind the Coyote Discovery Museum is open Sundays through May. Free, kid-friendly, and the only place in the valley you can climb on a 1948 John Deere without getting yelled at. Lumi rates it: tail wags. |
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Civic 130 Morgan Hill residents weighed in on the budget The city's Balancing Act online simulator drew 130 completed submissions. 60% of respondents oppose a 0.25% sales tax bump. Council is now targeting the 2028 ballot, not 2026. Source → |
Public Safety Wildfire prep season starts now Beyond the May 15 Gilroy weed deadline (in events above), Cal Fire's seasonal red-flag watches start in mid-May. If you haven't cleared a 30-foot defensible space, this is the weekend. County FAQ → |
From Sheena & Ryan Date night at Gilroy Bowl this week First time for both of us, and Ryan is already getting competitive. The downtown bowling alley reopened in 2024 after a full renovation: nine lanes, 12 beers on tap from Alvarado St. and Humble Sea, plus a kitchen with wings, pizza, and salmon bowls. We'll report back. Gilroy Bowl → |
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One South Valley business gets the spotlight here. If that's you, this slot is yours. We'll write it with you. |
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Three featured local businesses this week. |
| Maurizio's Italian Restaurant | Morgan Hill |
|  | Family-run, downtown MH institution. Worth the wait on a Saturday. Visit → |
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| Roho Roasting Company | Morgan Hill |
|  | Small-batch roaster with a cafe that takes its coffee seriously. Single-origin pours. Visit → |
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| Guglielmo Winery | Morgan Hill |
|  | 100 years in the valley. Free tastings on the patio every weekend. Visit → |
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First issue of a few small changes. We're adding a weekly Recent Sales section so you always know what's actually closing on streets near you. The market is shifting, and it's easier to read the room when the numbers are sitting right there. Hit reply if we missed something, got something wrong, or know of a sale we should feature next week. Forward this to a neighbor. See you Wednesday.  | Sheena & Ryan
(and Lumi, snoring on the couch) |
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⭐ For South Valley Realtors If you're a realtor in Morgan Hill, Gilroy, or San Martin, this is for you. We have exactly one Founding Agent slot per city. |
Read every Wednesday by 316 South Valley homeowners. · Forward to a neighbor. |
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