Morgan Hill housing update: price levels stay high as The Magnolias breaks ground
Morgan Hill, CA – February 28, 2026 – Prices stayed elevated across major trackers while homes often took about two months to sell; a new affordable project broke ground along M…
Key takeaways
- Redfin’s citywide data for Jan. 2026 showed a median sale price near $1.2M and average market time around 60 days.
- Zillow’s Home Value Index (data through Jan. 31, 2026) put typical values around $1,307,000.
- Zillow also showed about 75 homes listed for sale and roughly 25 new listings.
- Zillow reported homes going to pending in about 25 days, suggesting well-priced listings can still move quickly.
- New supply: The Magnolias affordable-housing community broke ground in mid-February and is planned for 65 income-restricted homes, supported by $25M in County funding.
Market snapshot
Different trackers measure different things (closed-sale medians vs. modeled value indexes), but both point to high price levels and a market that’s not racing like peak-cycle years. For sellers, the environment looks sensitive to pricing and condition; for buyers, longer average days on market can create room to negotiate on listings that linger.
Development watch
The City’s development-projects portal continues to publish pipeline updates and weekly submittal reports, while The Magnolias groundbreaking signals continued emphasis on subsidized rental and worker housing.