Santa Cruz Real Estate Market Update: March 2020

Santa Cruz Real Estate Market Update: March 2020

Are you curious what the Santa Cruz Real Estate Market is doing this March?

Well, I made this Santa Cruz Real Estate Market Update: March 2020 video at the beginning of this month and unfortunately is already outdated. The video was so upbeat because the reality of Coronavirus hadn’t reared it ugly head. The economist and experts had no clue just 12 days ago how coronavirus was actually going to affect our Santa Cruz housing market. But after seeing stocks plummet for 2 weeks straights here’s what they are saying.

  •  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.

Santa Cruz Real Estate Market Update: March 2020

Homes will most like stay on the market a little longer and a softness in home prices for these upper price segments.

Ever since I’ve been doing these market updates since July of last year, talks of recession have been looming, but I have always stated from what I’ve read and from the facts that a recession doesn’t need a financial crisis like we experienced back in 2008 9 and 10. But if consumers confidence goes down and spending dwindles as a result then risk of a recession increases.

And with all of that mortgage rates are likely to fall even further than what was reported at the beginning of March. Last week we had an emergent 50 basis point cut to target interest rates and the cost of a 30 year fixed mortgage rate could  come down an additional 10-20 points in the coming weeks.

We will have a better idea once the March data comes available for consumer spending, home sales and home sales prices.

But what does that all mean to our Santa Cruz Real Estate market?

Westside of Santa Cruz, California

Now first If you found this video to be helpful, please hit the like and subscribe button so you can get informed when my next video is posted.

Back to how this could affect our Santa Cruz county home buyers and home sellers:

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 corona virus and with the financial markets taking a huge hit it also means buyers may have lost a portion of their down payment.

Santa Cruz Real Estate Market Update: March 2020

This has been an updated Santa Cruz Real Estate Market Update: March 2020. I will keep you updated on what the Santa Cruz Real Estate market is doing in the coming months. For now, stay healthy and happy, despite all that is happening with Coronavirus.

Please feel free to reach out to me anytime so that we can discuss how I can put my years of Santa Cruz Real Estate experience to work for you. I look forward to hearing from you. As always, feel free to reach out to me if you have any questions, or would like to schedule a complimentary and confidential consultation.

Ocean View Home in the Soquel Hills

I’m Shemeika Fox, your Santa Cruz Real Estate expert, here to make your dreams, a reality.

Shemeika Fox (831)588.2334

sfox@yoursantacruzrealestate.com

David Lyng Real Estate

DRE 01479629

 

Video Transcript:

What’s happening with our local Santa Cruz county real estate market? Things are starting to heat up, as we head into the spring.

We are starting to see a few more Santa Cruz properties come on the Santa Cruz real estate market. We are seeing more of a trickle though, than a flood. But I anticipate things will heat up and will get even more momentum come spring and summer.

Hi. I’m Shemeika Fox, your Santa Cruz real estate expert. We currently have 311 active Santa Cruz county homes, that includes both single-family Santa Cruz homes as well as condos and townhomes right here in Santa Cruz county. This is an increase of about 60 Santa Cruz homes from last month.

So you see, our Santa Cruz housing inventory is increasing.  And with the Federal Reserve making an emergency rate cut last week to its short term rate amid Coronavirus concerns, the 10-year treasury note, which influences mortgage rates, has also plummeted to record lows. The 30-year fixed rate mortgage last week averaged 3.29%. The lowest on record, Freddie Mac reported. And the lower the rate, the more home you can afford.

Be patient. Be persistent. And you will succeed in finding your Santa Cruz dream home.

Right now, some Santa Cruz listings are seeing multiple offers and bidding wars. As Santa Cruz inventory increases, this trend will likely go down.

There are currently 194 Santa Cruz homes both single-family and townhomes that are pending. This number is up by 56 homes right here in Santa Cruz compared to last months’ Santa Cruz pending home properties.

And there are 275 Santa Cruz single-family homes as well as Santa Cruz townhomes and condos, that have actually sold since the first of the year. The number of Santa Cruz properties that have sold since the beginning of the year is up by 138 sold Santa Cruz properties both single-family as well as condos and townhomes.

So, as you can see, the Santa Cruz real estate market is moving and there are a lot of moving parts, but locally and nationally, it is a great time to take advantage of the local Santa Cruz real estate market.

If you are considering selling your Santa Cruz home, of if your considering investing in a Santa Cruz property, please feel free to reach out to me anytime, so that we can discuss how I can put my years of real estate experience to work for you. I look forward to hearing from you.

As always, feel free to reach out to me if you have any questions, or would like to schedule a complimentary and confidential consultation. I’m Shemeika Fox, your Santa Cruz real estate expert, here to make your dreams a reality.

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