Two weeks ago I made the 8:30 AM Brokers Open morning meeting. It is attended by Realtors, Lenders, Home Warranty Reps, Title and Escrow Representatives. So one could say any and most all Real Estate Brokerages probably have someone in attendance. The meeting was well attended, standing room only. What were we talking about? Coming Soon's ! Realtor after Realtor shared info about properties they have Listing Agreements signed for the market in 2017.
I agree with some smart Real Estate economists who have recently spoken about our areas Real Estate Economy and what to expect going forward. Even with our .25% Fed finance rate increase to start the year, it won't effect our market much, as our loan rates are still Historically low. The Silicon Valley is the Technology center of the world and business is strong. Even with the increasing multi unit housing now coming online throughout the South Bay, many will still prefer our coastal beach town for a more relaxed lifestyle and be willing to commute to their jobs. Baby Boomers from the Bay Area, and the Central Valley are looking to relocate and finally have that beach life, while still being within a 2-4 hours drive away from family and friends left behind. WE see the market more leveled and strong for at least five years going forward.
Santa Cruz is the only Northern Ca. Beach town, with many reef and beach Surf Breaks for the growing surfing community, a Mediterranean climate, and with a mountain range of Redwoods to the Sea. People want to live here. Our inventory will remain tight, It is the new norm. With not enough properties available for Baby Boomers to move up or laterally to. More are staying put and remodeling. Baby boomers for the most part have refinanced to very low rates. Prop 13 also has assisted them to maintain a lower property tax base. In some different home pricing brackets, pricing has leveled and will be now at a slow value climb. Affordable homes like: Manufactured Homes , Condos, Townhomes, including Median Single Family Residential properties below $900,000 will be in high demand and will remain in short supply.
I know 2017 will be a good year. Still with the recent elections our country is standing more divided than ever in my life time. The general public may be a little more cautious beginning the new year as the new president takes office. I have been made aware more recently that Commercial Lenders ( business Loans ) and their advisors are a little uneasy.
Happy New Year