Santa Cruz Real Estate Market Update: December 2020
Happy holidays. We hope you’re able to enjoy, though I’m sure it’s a little different than years before. As we roll into 2021, I wanted to share some interesting information, as well as our local Santa Cruz real estate market and, of course, the national real estate market as well. I’m Shemeika Fox, Your Santa Cruz Real Estate Expert.
Do you want to know where the top housing markets for 2021 are predicted to be?
Let’s look at what realtor.com has to say for their predictions for the top housing markets in 2021. Realtor.com developed a list of areas that they feel will see a higher growth in 2021. Their researchers factored in past sales prices, the number of sales, rate of new construction, previous and anticipated economic household and income growth of the areas. They tracked 100 of the largest metropolitan areas in their study and here is what they came up with. One, Sacramento, California, anticipated home price change up 7.4%. San Jose, California, anticipated home price change up 10.8%. Charlotte, North Carolina, up 5.2%. Boise, Idaho, up 9.1%. Seattle, Washington, up 9.7%. Arizona, Phoenix, Arizona, up 7%. Harrisburg, Pennsylvania, up 3.8%. Check that out. Sacramento, California is listed by realtor.com as the number one and San Jose, California as number two. But if you were thinking about moving to Charlotte, North Carolina, Boise, Idaho, Seattle, Phoenix, or Harrisburg, Pennsylvania, well, according to realtor.com, you’re making a wise choice, as they are anticipating median list prices to increase an average of 6.9% as compared to the national average of 5.7%, even with all that’s going on. A 5.7 increase indicates a very strong housing market.
So if you’re considering a move or real estate transaction in 2021 and wondering what you should do or what’s happening, both nationally and locally right here in Santa Cruz in the real estate market, well, let’s take a look. Low interest rates are fueling competition among home buyers and boosting existing home-buying activity to the highest level since 2006. The increase in buyer activity is causing a frenzy for buyers and driving home prices up. According to Freddie Mac, mortgage rates continue to set record lows. The 30-year fixed rate mortgage recently averaged 2.8%, the lowest rate since Freddie Mac began tracking such data in 1971. Economists point to the weaker consumer spending as factors contributing to driving the mortgage rates down. This all contributes to a strong real estate market.
So what does that mean for the local Santa Cruz real estate market?
In Santa Cruz County, the median single-family home costs $1,050,000 and sold in eight days for 103% above the list price based on 165 sales in November of 2020. Inventory was down 20% from October and down 32% from November 2019, with 283 homes that sold compared to 417 the year before. The average days on market has decreased by eight days from 34 to 26 or 24%, and the days on market has dropped two days from the month before. Number of new listings for the month of November decreased 37% over October and is up 56% from November of last year. Closed sales decreased 9% from October from 182 to 165 homes sold. This is up 32% from November 2019.
If you’d like more information on the Santa Cruz real estate market and how it would affect you and your real estate goals, or if you’d like to schedule a complementary consultation, please feel free to reach out to me. I’m Shemeika Fox, Your Santa Cruz Real Estate Expert. And as always, I am here to help.
And I hope you have wonderful, safe, and exciting holidays.