Will housing prices fall or will housing prices rise? These are thoughts that both potential buyers and sellers are asking—though perhaps for different reasons! Regardless, Santa Cruz and Santa Cruz County are perhaps most well-known for their ample things to do (indoors and outdoors) and their gorgeous properties .As such, this has become one of the most expensive areas to live in the state.
For anyone considering buying or selling—from those trying to buy their first property, all the way to those who have sold their home before and are looking to sell again—this is what we think the Santa Cruz area real estate market might look like in 2025.
The Santa Cruz Real Estate Market: An Overview
Last year was a year of great highs and lows state-wide, with storms and fires impacting several communities. Santa Cruz’s real estate market has seen a steady incline in average sales price (of all property types) over the past decade, though inventory has fluctuated a little bit.
In 2024, the National Low Income Housing Coalition reported that the Santa Cruz-Watsonville area is the most expensive in the state of California when it comes to rentals—surpassing both the San Francisco and San Jose-Sunnyvale-Santa Clara areas. The market shows a similar increase when it comes to property ownership. All of the following statistics and data were taken from the Santa Cruz County Association of Realtors (SCCAR).
In 2023, the average sale price of a single-family home in Santa Cruz (city only) was $1,742,280, while the average across Santa Cruz County was $1,303,533. In comparison, in 2024, the average sale price of a single-family home in Santa Cruz was $1,700,902, with the average across the county being $1,359,649.
Sales inventory also increased from year to year.
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Number of single-family homes sold in Santa Cruz in 2023: 326
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Number of single-family homes sold in Santa Cruz in 2024: 378 (+15.9%)
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Number of single-family homes sold in Santa Cruz County in 2023: 1191
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Number of single-family homes sold in Santa Cruz County in 2024: 1257 (+5.5%)
When comparing January 2023 to January 2024, there was a 3% increase in median sales price, a 52% increase in new listings, and a 19% increase in the number of single-family homes sold in Santa Cruz County.
The Real Estate Market in 2025: What’s To Come For Homeowners & Homebuyers?
Based on sales data, time on the market, and other factors, the Santa Cruz (and Santa Cruz County) real estate market appears to be on an upward trend—with no sign of slowing down in 2025.
Homebuyers looking to break into the market for the first time might find it increasingly difficult to do so, while homeowners might find that insurance rates are increasing, as well. For sellers, this might be the perfect time to find an agent.
Areas such as Felton, Boulder Creek, and Mount Hermon continue to be most affordable communities for single-family homes in Santa Cruz County, while La Selva Beach, Capitola, Aptos, and Santa Cruz proper are the highest priced.
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Thinking of making the move to Santa Cruz County with your family? Get in touch with an agent at My Santa Cruz Real Estate has local knowledge and insider information. Connect with us today and find your dream home.
Posted by Lauren Spencer on
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