Well it is interesting but not surprising, that with falling prices, that homes are more affordable throughout California. This is a trend happening all over the state. While many people hoped that Santa Cruz real estate prices would fall further, the reality is that the Santa Cruz homes I have been seeing, are more affordable to many. We are seeing more activity, and while lending guidelines are more vexing, the interest rates are still quite good at 5%.

Santa Cruz home buyers from out of the area have been disappointed that the prices have not fallen like the other inland areas. To which I reply, yes that is true, while they have come down, in face of our financial mess, that should tell you that Santa Cruz real estate is a good long term investment. This is not a TV show flip this house type of market nor should it ever be. A house is a home and a long term investment. With that tenet in mind, this is an excellent time to move forward and buy a new or vacation home. For a bit of history on how the California First Time Buyer Housing Affordability Index is computed, read about it in the following link.

To see the rates for different areas click this link According to CAR "At 76 percent, the High Desert region was the most affordable area in the state. The San Luis Obispo County region was the least affordable in the state at 44 percent, followed by the Los Angeles County region at 46 percent. The First-Time Buyer Housing Affordability Index also rose 6 percentage points in the fourth quarter of this year compared with the third quarter of 2008, due to a 14.1 percent decrease in the entry-level median home price." I would say Santa Cruz because of it's relatively high price is , according to the stat I saw listed at 43%, still a hight priced area and always will be, because of the obvious desirability of ocean homes.

So the good news is that young families have an opportunity to buy as long as they have 10% down as a minimum, and good credit. I have seem more good deals recently and believe this is a great opportunity for many to become homeowners. To see what Santa Cruz homes may be in your future, follow the link and see which homes appeal. Before you go out and start looking, but sure to get loan approved with a good local lender such as Woodwardoconnor.com mortgage. In this market, experience is critically important. As local Capitola mortgage brokers, they know the area and programs that apply to you. Give them a call at 831-479-3303.