Located on Monterey Bay, Santa Cruz County offers the best of nature’s beauty. Santa Cruz County has everything from beautiful beaches to rich redwood forests and flourishing farmland. There are four cities in the county: Santa Cruz, Scotts Valley, Capitola, and Watsonville, and all have 300 days of sunshine every year. It’s a beautiful place to live, and homes for sale in Santa Cruz have always been in demand. Over the past few years, the real estate market has been very different from what we have seen, so what can we expect in 2022?
Here are the latest trends shaping the real estate market in Santa Cruz County.
Then, we had a cultural shift during the pandemic. People started to see the need and the value of more time at home, which meant they needed bigger homes. People began moving to other areas with more green spaces after switching to remote work. Supply chain shortages are exacerbated by the increase of fires, tornadoes, hurricanes, and other natural disasters. While the pandemic created a notable surge, it’s not the cause—nor will its end be the cure—for the low supply of available homes.
In 2019, Santa Cruz homes were on the market an average of 44 days—now, it’s 25 days. There are no indicators of this slowing down. Talking with your real estate agent about the sales process when you find the home you want, and having a plan in case the property receives multiple offers, will enable you to be expeditious and effective with your bid.
Increased home values
Last year, homes in Santa Cruz were selling at an average of 104% over the listing price. This leads people to worry about paying over value for a home. Here’s the secret—the listing price on the house is set to encourage multiple offers. If you look at a home and feel the price is more than what the home is worth, you’re not going to pay that price. The same is true for any homebuyer.
Here is why—super-low interest rates are more likely to cause people to refinance their properties. First-time homebuyers will still want to purchase their first home, and families that outgrew their first home will still need to upgrade to a larger one. Retirees will still need to downgrade to a smaller home. Interest rates will either stay flat or start inching up — it’s unlikely they will go up to levels that will make purchasing a home unattainable.
Be sure you are working with an experienced real estate agent as there are several state and local disclosure laws about when sellers receive multiple offers on a property. You do not want to find yourself in legal trouble!
Talk with a banker early about financing requirements. A good lender will be happy to talk with you and help you prepare for homeownership. A trusted financial adviser can help you plan, save, and build your credit score. Talk with a real estate agent that enjoys assisting clients when buying their first home. They will be happy to educate you on the process of securing homes for sale in Santa Cruz and how to prepare for homeownership.
Getting the right price
The realtors on Sean Poudrier’s Team look forward to answering your questions about buying or selling real estate in today’s market. They are experienced professionals in luxury properties, investment real estate, and residential homes. Contact them today to find your next dream home in Santa Cruz County!