As we near the end of 2009, there are some trends that have developed in the Santa Cruz Real Estate Market. For example, the low-end of our market has been on fire. We are seeing multiple bids on homes priced less than $500k. This is a result of several different factors, first is the availability of loan programs thru FHA, Freddie Mac, and Fannie Mae, second is the First Time Buyers $8000 credit, lastly a steady volume of bank owned and short sale properties with low prices. As seen by the chart below we have more property pendings that available home inventory. Thus we are seeing some price stabilization at the lower end of the market.
In the middle section of the market (Homes between $500k to $1m) there is better balance between inventory and pendings. Prices have begun to stabilize in this marketSegment. If a property is priced right in this market segment, it will sell fairly quickly. Again low interest rates, lower than usual inventory and lower prices are helping. It is a great time for Buyers that are moving up or scaling down. Certainly short sales and bank owned properties have had an impact on lowering prices. Thus Buyers can see some real value in this market segment.
The high-end of the market is really struggling at this time. This market segment has not been hit as hard with bank owned properties or short sales as of yet. But we are starting to see some downward pricing adjustments. This is due to several factors. One, financing is more difficult for high-end homes, second we have too much inventory, and lastly we are starting to see more short sales and bank owned properties.In the greater Bay area, high-end homes in the Hillsborough and Atherton have fallen in value by 14%. In our area, beach properties have not been hit as hard, but high-end country properties are being hit pretty hard. It is a great time for an all cash buyer in this market segment.
Subscribe to CommentsComment