It’s crazy how much the national real estate market trends are just so similar to what we’re seeing right here locally with the Santa Cruz County real estate market. Hi, I’m Shemeika Fox, your Santa Cruz real estate expert. Our local Santa Cruz, California real estate market trends are just so similar.
There is a severely limited supply of homes on the market, both nationally and right here in Santa Cruz. That coupled with the lowest mortgage rates in history, home buyers should expect to see some competition. But do not let that intimidate you out of the market. With a thoughtful strategy and patience, this could be one of the best times to buy a home, both nationally and right here locally in Santa Cruz County.
Here’s a quote, “January has been strong with prices up, home sales up, and listings down quite a bit.” from Daryl Fairweather of RedFin’s chief economist. She told USA Today also that home buyers are more likely to face competition.
An article in the National Association of Realtors noted, “Inventory in January was the lowest it has been in more than two decades.” At the end of the month, there were 1.42 million homes for sale including condos, co-ops and single family homes. That is down 10.7% from a year earlier, according to the data from the National Association of Realtors.
However, buyer demands are remaining high, which has put pressure on the home prices. The median sales price for all housing types was $266,300, up 6.8% from a year ago. National Association of Realtors data shows that median home sales prices here are just slightly different in Santa Cruz. The Santa Cruz median home sales price for single family homes as well as condos and town homes, in Santa Cruz county is hovering right around $805,000.
The Coronavirus and volatility in the stock market may cause pause for some but for others looking to diversify their investments into real estate, this may cause even more buyers to flood the market, driving prices and competition. But do not be afraid. Look to local, seasoned realtors in your local market to help you navigate through this process.
If you can bear it, there will be a wonderfully positive outcome. The Federal Reserve made an emergency rate cut last week to its short term rate amid coronavirus concerns. The 10 year treasury note, which influences mortgage rates also has plummeted to record lows. The 30 year fixed rate mortgage last week averaged 3.29%, that’s the lowest on record, Freddie Mac reported and the lower the rate, the more home you can afford.
Homeowners if you’re thinking about selling, home prices may not be as strong moving into the spring as we once predicted. On the other hand because Coronavirus may likely cause more people to hold off on listing this may also mean that the shortage of homes is increasing as buyer demand also increases. That could still be a win for a seller because having more buyers than homes available is what drives up the price a buyer is willing to pay.
Now if you’re a buyer, the good news is that interest rates are super low, unfortunately there aren’t as many homes so you may spend more time searching than you would have pre-Coronavirus and with the financial markets taking a huge hit it also means buyers may have lost a portion of their down payment.
- CAR likely to revise its 2020 forecast downward but not dramatically. Meaning they are thinking that home sales and prices will not increase as much as previously predicted, but with lower interest rates this should help offset the effects of a slower economy and increased economic uncertainty
- Because of the impact to the financial markets it means that households will become less wealthy which will reduce the demand for real estate. More so affecting the top of the market where wealth is often used as a source of funds for luxury homes, second homes, and investment properties
“Before the coronavirus concerns started in the United States, the housing market was strong, with our agents reporting intense competition among homebuyers. Put simply, there haven’t been enough homes to keep up with demand.” -Daryl Fairweather, Redfin Chief Economist
Be patient, be persistent and you will succeed. If you would like more information on National Real Estate market and trends both locally and nationally, please feel free to reach out. I’m Shemeika Fox, your Santa Cruz real estate expert and as always, I’m here to help.
Shemeika Fox: Your Santa Cruz County Real Estate Expert. My passion for helping people achieve their Santa Cruz Real Estate dreams is complimented by my strong work ethic. Our focus is to help you sell your Santa Cruz County California property faster and for more money… and to help you find and buy the perfect home with little hassle.
National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020, National Real Estate Market Update: March 2020