Contrary to the more bleak national picture, home sales in Santa Cruz County, CA rose 22.6% in June 2008 (compared to May). Year-over-year, our sales of single family homes are only off by 5.6%. This is the lowest year-over-year decline since July 2007. There seems to be signs that we are hitting the bottom. Inventory rose 2.1% from May, but it is down 12% year-over-year.
What about the article in USA Today dated 6/23/08 Santa Cruz, Calif., Surfs Through Rough Times. Among other advantages, the article touts our stable job market, being close to the Silicon Valley, home of UCSC, and the fact that we don't have large tracts of housing developments evident in other areas of California.
The fact of the matter is, we didn't over build during the housing boom, because we couldn't. Our land is very limited which works in our favor in the supply and demand formula. For a look at sales activity in some of our local neighborhoods, click on the following links: