Luxury homes along the Santa Cruz waterfront

For the past few years, the real estate market in the Santa Cruz metro area has seen some changes—most significantly that housing prices continue to rise, despite a number of external factors (i.e. a pandemic, a rising cost of living) that would typically cause average prices to stagnate or even fall. Of course, this is true of most areas across the state, but it can be a bit disheartening, particularly for first-time homebuyers.

 

If you’re considering buying or selling a home in and around Santa Cruz, the following information may help you better understand the market before you make your decision.

What’s The Santa Cruz Real Estate Market Like?

Comparing data from both the state of California and the metro area of Santa Cruz, there are a few statistics of note. According to active realtors, the number of sales closed fell almost 9% from January, with the number of listings dropping slightly (though much less, at about 1%). 


However, as we move into the spring season (generally considered the best time to buy or sell a home!), many are optimistic that these numbers will rise exponentially in the coming months. March to May is generally the busiest time to buy/sell a property.

Current Housing Prices In Santa Cruz

According to the Santa Cruz Association of Realtors, the median price for a single-family home in January 2024 was $1,160,000. Taking into account market trends, home prices in February tend to rise slightly, and this month seems to be following in the footsteps of other years.

 

In the second week of February 2024, Redfin reported an average sale price of $1,032,708, though it is important to note that this includes not only single-family homes, but condos and townhomes in the Santa Cruz metro area, as well. We can also compare the monthly sale data (average sale price) of single-family homes in the city of Santa Cruz from previous years, as collected by the Santa Cruz Association of Realtors:

  • February 2023: $1,597,322
  • February 2022: $1,989,629
  • February 2021: $1,296,120
  • February 2020: $1,144,246

 

As a whole, housing prices seem to closely reflect the trends of the previous year. Comparing the average sale prices from 2023, January saw a 0.6% increase from this time last year. 

 


On the other hand, the average listing price is not the same as the actual selling price. In some locations, these figures can vary quite a bit, illustrating a gap between what sellers think the property is worth and what homebuyers are willing to pay.


According to Redfin, the average selling price of a property in the Santa Cruz metro area at this point in time is $1,020,000. In comparison, 2022 and 2023 had differing numbers: $1,109,000 and $1,067,000, respectively.


While this may not be a considerable difference, it’s interesting to note that properties sell, on average, at their listed price or a little bit less—and this goes back to supply and demand of homes on the Santa Cruz real estate market.

A Buyer’s or Seller’s Market?

It is currently a seller's market, as is true of almost every single region in the state of California. All this means is that buyers are usually competing with each other to purchase a home, and that there is low inventory and high demand. This directly reflects the figures above, particularly the number of sales closed and the number of listings dropping. However, this could even out in the future.

Santa Cruz Real Estate Market: The Future

According to collected data, the number of homes sold around this time of the year is significantly less than the years 2020 and 2021. 


What does that mean? Ultimately, it means that this is a favorable time for sellers to list their property, and buyers may want to hold out, or take the plunge now before housing prices rise further.

 

Browse Homes For Sale In Santa Cruz, CA

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3485 Stable Ln, SANTA CRUZ

$12,800,000

3485 Stable Ln, SANTA CRUZ

4 Beds 2 Baths 950 SqFt Single Family Residential MLS® # ML81936047

eXp Realty of California Inc 831-594-8042MLSListings Inc Logo

2950 Pleasure Point Dr, Santa Cruz

$10,500,000

2950 Pleasure Point Dr, Santa Cruz

3 Beds 4 Baths 2,570 SqFt Single Family Residential MLS® # ML81957240

Sotheby's Intl Rlty 650-804-4770MLSListings Inc Logo

4250 Opal Cliff Dr, SANTA CRUZ

$9,275,000

4250 Opal Cliff Dr, SANTA CRUZ

4 Beds 3 Baths 2,657 SqFt Single Family Residential MLS® # ML81945584

David Lyng Real Estate 831-345-4269MLSListings Inc Logo

5515 Coast Rd, SANTA CRUZ

$8,000,000

↓ $1,000,000

5515 Coast Rd, SANTA CRUZ

2 Beds 3 Baths 1,621 SqFt Single Family Residential MLS® # ML81890448

Golden Gate Sotheby's International Realty 650-465-2180MLSListings Inc Logo

New
220 Falcon Hl, SANTA CRUZ

$7,950,000

220 Falcon Hl, SANTA CRUZ

5 Beds 5 Baths 5,036 SqFt Single Family Residential MLS® # ML81952731

Golden Gate Sotheby's International Realty 650-799-1855MLSListings Inc Logo

New
1004 W Cliff Dr, Santa Cruz

$7,750,000

1004 W Cliff Dr, Santa Cruz

6 Beds 5 Baths 3,236 SqFt Single Family Residential MLS® # ML81962341

Compass 831-238-7981MLSListings Inc Logo

4360 Opal Cliff Dr, SANTA CRUZ

$5,700,000

↓ $250,000

4360 Opal Cliff Dr, SANTA CRUZ

3 Beds 2 Baths 2,427 SqFt Single Family Residential MLS® # ML81952349

eXp Realty of California Inc 831-588-5993MLSListings Inc Logo

321 2nd St, SANTA CRUZ

$4,850,000

321 2nd St, SANTA CRUZ

0 Beds 0 Baths 5,920 SqFt Multi-Residential MLS® # ML81958891

Coldwell Banker Realty 831-818-1540MLSListings Inc Logo

4355 Opal Cliff Dr, SANTA CRUZ

$3,995,000

4355 Opal Cliff Dr, SANTA CRUZ

4 Beds 4 Baths 2,303 SqFt Single Family Residential MLS® # ML81956989

eXp Realty of California Inc 831-588-5993MLSListings Inc Logo

1212 W Cliff Dr, SANTA CRUZ

$3,790,000

↓ $360,000

1212 W Cliff Dr, SANTA CRUZ

4 Beds 3 Baths 3,141 SqFt Single Family Residential MLS® # ML81924717

Compass 831-515-8582MLSListings Inc Logo

4575 Paul Sweet Rd, SANTA CRUZ

$3,750,000

4575 Paul Sweet Rd, SANTA CRUZ

3 Beds 3 Baths 3,208 SqFt Single Family Residential MLS® # ML81958057

Bailey Properties 831-588-7800MLSListings Inc Logo

221 Raymond St, SANTA CRUZ

$3,590,000

221 Raymond St, SANTA CRUZ

0 Beds 0 Baths 5,038 SqFt Multi-Residential MLS® # ML81959959

Robert Chiang Real Estate ServicesIncorporated 408-646-4218MLSListings Inc Logo

 

All data was taken from Redfin, The Santa Cruz Association Of Realtors®, and the California Association of REALTORS®. Small discrepancies are expected.


Get answers to all of your real estate questions. If you're interested in learning more about the homes found in Santa Cruz, be sure to contact Lauren Spencer online or call 1.800.226.4717 to learn more about the area.

Posted by Lauren Spencer on
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