What is happening in our real estate market right now? That is the question of the hour. Hi, I’m Shemeika Fox, your Santa Cruz real estate expert. And I’m here to share with you the local insight on Santa Cruz real estate market and trends, as well as what analysts and real estate experts across the nation are predicting.
According to Goldman Sachs, JP Morgan, Wells Fargo, Bank of America, and several other analysts, they are predicting economic growth in the third quarter, ranging from 15, all the way to 25%. A graph statistic from Opportunity Insight shows that most businesses ranging from healthcare to transportation all had a decline in consumer spending in the first half of the year with the exception of groceries, which actually went up. The good news is that these predictions from the analysts are expecting progress in the third quarter as compared to the first half of the year. In fact, according to Lisa Shalett, the chief investment officer of Morgan Stanley, she states and I quote, “Indeed the worst ever GDP reading could be followed by the best ever growth in the third quarter.” We are starting to see a rebound. Small businesses obviously have been impacted due to the stresses and issues that are happening across the globe.
How has this impacted the real estate market nationally and locally right here in Santa Cruz? How have we recovered? Well, I’m going to show you a few quotes from several economists and real estate analysts regarding the recovery of the housing market and it’s very interesting. It almost reads like a movie trailer here. Realtor.com, “Astonishing rebound.” Housing wire, “Shockingly strong.” Adam Data Solutions, “Pulled something of a high wire act in the second quarter.” Zillow.com, “Stared the pandemic right in the eye and hasn’t blinked.” Meyers Research, “Has been nothing short of remarkable.” So it seems that housing may play a critical role in the recovery.
Since about the middle of May, people are out in full force, looking at homes across the nation and here in Santa Cruz. People are out in full force more than they have been previously throughout the entire year. According to the National Association of Realtors, the housing market index looks into four things. Demand, supply, price and time on the market. It combines those together and creates an index and refer to the index. We saw a rise up and a dip down, and now we are above what we in February of this year. So it shows that we are recovering strongly.
The big question is what’s going to happen with pricing? What should we know and what should you do if you are considering buying and or selling your Santa Cruz home? Well, here’s a snap of the current Santa Cruz housing market. Based on August statistics in Santa Cruz County, the median single family home cost $1,050,000 and sold in 14 days for 100% of the list price. This is based on 152 sales in August, 2020. Inventory was down 13% from July and down 41% from August, 2019 and 347 homes available compared to 589 homes last year. Average days on market increased five days from 34 to 39 or 15%. Median days on market dropped one day from the month before. Number of new listings for the month of August decreased by 28% over July and decreased to 22% from August of last year. Closed sales decreased 32% from July from 225 to 152 homes sold. This is down 9% from August, 2019.
If you would like additional information on how this Santa Cruz real estate market will affect you, please feel free to reach out for a complimentary confidential consultation. I’m Shemeika Fox, your Santa Cruz real estate expert. And as always, I’m here to help.
Shemeika Fox
Santa Cruz Realtor
David Lyng Real Estate
831.588.2334
sfox@yoursantacruzrealestate.com
www.yoursantacruzrealestate.com
DRE 01479629
