Prices of residential properties in Santa Cruz County, California continue to decline. These include all types of residences, even Wachovia home foreclosures and other types of foreclosed dwellings. However, buyers are still reluctant to make any purchase, even with mortgage rates at record lows.
According to most real estate market analysts, Stockton foreclosed homes and almost all types of Santa Cruz dwellings are not selling despite these perks, primarily because most buyers are scared of the current condition of the housing market. Others just do not have the means to offer a down payment due to job losses, while others find it difficult to get a loan with tighter lending rules in place.
Although prices of newly built dwellings and foreclosed homes in California have declined considerably, Santa Cruz residences remain some of the most expensive all around the country. Prices of houses in the county have declined, but they are still relatively more expensive than other markets. Average prices of homes in the area are at $510,000 as of July 2010.
Current prices, although still considered high, are much lower than three years ago when median home prices were at $775,000. Some people would probably expect homes in the county to be snatched from the market, particularly foreclosed properties like Wachovia home foreclosures, but this is not exactly what has been happening.
According to the latest local housing market statistics, only 145 house sales were completed in July, the period considered to be a traditional best-seller month in terms of home shopping. Last year, bank home foreclosures for sale and newly built houses that were purchased off the market totaled 175, even higher than the current year when mortgage loan rates are at their lowest in almost a decade.
State housing sale conditions mirror that of the national market, with national home sales declining by over 25% this year. Analysts are predicting that this situation will probably continue for a few more years, with most buyers wary of putting their money down on properties, even those that are offered for practically half their original prices.
Analysts also believe that the state and national housing market will achieve a sustained recovery only when unemployment rates reach reasonable levels. Right now, majority of newly built dwellings and foreclosed properties, including Wachovia home foreclosures, will remain in the market despite their low selling prices.
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