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Market Update by David Morrell - July 26, 2011

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Real Estate Agent with C21 M&M and Associates 01301485

This past week the County of Santa Cruz median sales price went up $100,000 year over year, from $435,000 in June of 2010, to $535,000 in June of 2011.  Year over year median prices in a small county can be deceptive; they work off a relatively small number of sales.  In 2010 149 homes sold, in 2011 it was 167.  However this number does reflect movement in the high end market.  Despite 60 distressed properties (those listed as bank owned and short sales) the median price went up.  

 

A different sampling of high end homes (listed over $900,000) located between Scotts Valley and La Selva Beach, listed over a time span of the past 9 months, shows that homes in this price range are selling.  There are currently 144 homes for sale in this category.  There are 23 homes pending sale; which are homes in escrow scheduled to close in the next 30-60 days.  55 homes sold, and the sales prices in most cases were within 5% of asking price.  A few homes sold for over asking, and there were some homes that sold off market.  This is a very high number of properties for sale relative to pending sales. Buyers in this price range have choices.

 

Sellers are willing to negotiate here in Santa Cruz, but in some cases we are seeing multiple offers.  A home on Lisa Court went on the market for $998,000 and sold with four offers for $1,025,000.  This particular property is in excellent condition, and the home is located on a quiet street and is near UCSC.

 

Numbers can be misleading, but they are an important window to an understanding of the nuances of the market.  I would argue that even with distressed properties for sale, that we are in a normal market.  People are moving here, and people are relocating to other areas.  It's normal movement in and out of town driven by life circumstances.  The buyers want homes here, and they are qualified for loans and have money saved for their down payment.  This is no different that the forty years between 1965 and 2004, with few exceptions.

 

 I have also noticed a palpable increase in interest for multi-residential properties.  A ten unit complex near UCSC sold in 6 days, and is currently in escrow.  Though this property is still a month from being a recorded sale, it represents a desire of buyers to invest in real estate in our area.

David Morrell

Coldwell Banker

International President's Elite

DRE License # 01301485

824B Mission Street, Santa Cruz, 95060

831-239-1255 | Fax 831-844-2313

www.davidmorrellsc.com  

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