In the January, Coastal Magazine issue, the question asked for my prediction of how the 2017 real estate market would play out in Santa Cruz County. In the body of my reply I shared: "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". Well that has all been true, sellers and buyers alike seam to struggle a lot more with financial decisions they are making. Inventory again remains extremely tight, money is costing a little more to borrow. Still, mortgage costs are at all time lows with many Lenders adjusting their pricing months back as they already had the benefit of the news media saying loan costs would rise.
As we enter the second half of the year, what differences do you forecast in the Real Estate economy?
The public as a whole is more aware than ever of what our government is doing. Many very frustrated, however seem to take the stress of the new changes in Washington in stride. In the first 6 months of this year our market has stayed very busy.. I know numerous sellers discussing the changes they do / need to make , though seem to be holding off longer to let the steps happen. Although homes continue weekly to be listed. There are also plenty of people looking for homes to purchase. Though more cautious as the cost to purchase continues to climb. Supply and Demand has not changed!
Personally, I knew for me it would be a busy year. Though I also was concerned how the first half of the year would play out. Well... Our economy is extremely strong here, with a crowded Silicon Valley, a small mountain range away. We have very strong job markets all around our bedroom beach community (The only Northern Beach Town),. Add in the many locals who have made this town their own decades ago and have children, not leaving and are buying their own homes here. Then you add a wonderful Junior College and UCSC'S housing needs into the mix. This year will finish strong. I believe we will look back to see an overall volume very similar to 2016 in sales and in percentages of property value increases year to date.
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