KEY THOUGHTS ABOUT THE SANTA CRUZ REAL ESTATE MARKET
- The statistics for year-over-year median single-family home prices decreased for December, and prices are down about 4.2%. Condos and townhomes are down about 5.5% when compared to December of 2018.
- Inventory levels for single-family homes, condos, and townhomes have been decreasing the last couple of months and are about 30% lower than this time last year.
- With 1.7 months of SFH inventory and 1.9 months of condo/townhome inventory, the market is still slightly tilted toward sellers as we enter the new year. Buyers have started to recognize the reduction in inventory options, and multiple offers are coming back for many homes on the market, and in some cases, homes that have been on the market for extended periods.
- Interest rates at the end of December and into November are hovering around 3.75% for 30 Year fixed loans, and are 3% or below for 7/1 and 5/1 ARM products. This, combined with price reductions throughout the year, has increased overall affordability for buyers.
- The Federal Reserve is continuing its easing campaign and steadily increasing its balance sheet at the beginning of the year. This drives more liquidity into the marketplace and helps to bid up assets like stocks, bonds, and, more indirectly, real estate.
- Sereno Group still expects a hot market in the Spring of 2020 as inventory will be tighter, mortgage rates are still low, and consumer confidence seems to be trending much higher than this time last year.
- Sereno Group has launched some new loan products in 2020 to help clients finance renovations before they sell, and also buy before they sell. Hopefully, this financing package will help to make the moving process much less difficult and anxious for home sellers. Get more information at: www.serenogroup.com/Loan-Offerings.
Don’t hesitate to reach out to discuss your situation and see if now is the right time to buy or sell a home. My advice is free, and I love to help!