There’s definitely a pandemic going on out there, but you wouldn’t know it by looking at the real estate market.
Despite what you might think considering the state of the public health crisis and its impact on many industries across the United States economy, the real estate market appears unfazed.
Home values across the state of California as well as in Santa Cruz specifically are charging ahead, charting record growth in August. These trends are expected to continue into 2021 as well.
What’s the state of the Santa Cruz real estate market now?
The state of California’s median home value hit a record high in August 2020. The average median price of a home across California hit $706,900, that’s an impressive 14.5% increase over last year.
Looking at Santa Cruz County specifically, the growth is even more staggering.
We’ve seen a 20% growth in the median price of a single family home, compared to the same time last year. That brings our median home price to an impressive $1.05 million across the county.
What’s causing such meteoric growth?
The underlying cause of the current surge in home values is most likely a direct result of increased competition among buyers, combined with a lack of inventory.
The California Association of REALTORS®’s uses a metric known as the Unsold Inventory Index or UII to keep track of the number of a unsold properties currently on the market. In August the UII hit the lowest levels recorded in the last 15 years.
As of August 2020, there were only a total of 207 active listings across Santa Cruz County. This is a 54% decrease over last year.
So, inventory is low, but the public’s appetite for purchasing real estate is on the upswing.
Freddie Mac had reported that low rates have spurred a record number of first-time homebuyers to take the plunge. This additional activity caused by record-low mortgage rates has created even more competition, only extenuated by the few properties available to be purchased.
What does this mean for Santa Cruz home sellers?
To put it simply. It’s a great time to sell!
Their is currently a low inventory and increasing number of eligible buyers. This means that homes are selling fast and you can likely comfortably demand a higher list price.
In August, the median days on market was recorded as just 12 days in Santa Cruz County!
Happy selling!
Are you considering putting your Santa Cruz home on the market? Be sure to contact Lauren Spencer online or call 1.800.226.4717 to learn more about how she can help you!
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