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Keeping you up to date with Santa Cruz Real Estate
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Weekly Market Update
- The hottest zip codes in the county in terms of the Market Action Index (ratio of inventory/homes selling) are the Eastside (95062) with an index of 53 and a median list price of $1,586,500 and Ben Lomond with an index of 53 and a median list price of $977,000.
- 26 properties sold in the county this week with an average sale price of $1,245,757.
- There are 477 active for sale properties on the market here in Santa Cruz County. This number is now gradually increasing
- Mortgage applications benefited from lower rates again this week. According to the latest data from the Mortgage Bankers Association (MBA), applications to refinance surged 35% from last week, the strongest gain since May 2022, and were an enormous 118% higher than one year ago. By contrast, purchase applications rose just 3% from the prior week and still were down 8% from last year at this time.
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Three-Story Westside Village Development Moves Forward
A three-story, 100% affordable housing development called Westside Village proposed at 850 Almar Ave. near the Almar Shopping Center in Santa Cruz is one step closer to breaking ground after the Santa Cruz zoning administrator approved the project permits Wednesday. Santa Cruz Zoning Administrator and Principal Planner Samantha Haschert began the project’s public hearing by pointing out that with recent state density bonus laws such as AB 1287, a 100% affordable development in this area could be about 63 feet high or five stories high under the law. “The state law has changed significantly over the last year or so,” said Haschert at the meeting. “There are significant protections that have been provided by the state to protect these types of affordable housing projects. We have to process these permits within certain timeframes and we are limited to applying objective standards only. And objective standards are standards that are clear and knowable and involve no discretion by the city.” Heschert stressed that objective standards are “clear and knowable,” criteria such as a height limit of 30 feet versus stating that a height is not compatible with a neighborhood. “In the last year or so we have seen a lot of developments in the city that have sort of maximized these state laws to the greatest extent possible,” said Heschert. “I don’t see that with this project but we have seen that in other places in the city.”
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Mortgage Rates Down a Full Percent From Recent High
There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says: “The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”
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-Refi Demand Moves to Highest Level in Nearly two Years: In its July 2024 Market Advantage report released on Monday, mortgage technology firm Optimal Blue reported that refinance demand, measured by the level of locked loans, grew to its highest point since September 2022.
-Inflation Rate Inches Closer to the Fed's Target of 2%: The Consumer Price Index (CPI) continues to point toward an interest rate cut in September, falling to 2.9% for the 12 months ending in July.
-Signs Point to an Extended Decline in Mortgage Rates: Mortgage rates continue to recede as the market anticipates a Federal Reserve rate cut and the U.S. economy shows signs of weakening.
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Local Market Data
ALTOS Research Market Report
ALTOS RESEARCH MARKET REPORT IS AN INTERACTIVE, REAL-TIME REPORT. IT DISPLAYS THE CURRENT ACTIVITY FOR ANY MARKET YOU WISH.
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Mortgage Rates Are Down. Do Buyers Care?
- There has been little pickup in demand over the past few weeks as rates fell.
- Rates may have simply not fallen far enough or we have not had low rates long enough.
- Buyers maybe waiting on the sidelines to see what happens with the election.
- There are 41% more homes on the market than at this time a year ago.
- We have not hit the peak of inventory for this year yet.
- This implies that buyers really haven't been paying attention to the change in rates quite yet.
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4930 Cliff Drive, Capitola
This luxurious oceanfront property in the heart of Capitola is the most affordable oceanfront single family home in Santa Cruz County! This one-of-a kind home is one of only four single family homes located oceanside above the wharf and at the perfect angle to give you panoramic views of the entire Monterey Bay. On clear days you can even see all the way to the point at Big Sur. Spectacular views and easy access to the best parts of Capitola are just a few features that make this home so amazing. Add to that meticulous maintenance, tasteful renovations, and a layout that really maximizes the view and you have a home that is truly a masterpiece.
3 Bedrooms, 2 Bathrooms, 1,288sqft
Listed at $3,999,000
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1460 Lockhart Gulch Rd, Scotts Valley
This 1 bedroom home is 730 sqft with a 300 sqft additional dwelling unit that includes a full bath and kitchenette. This home is well maintained and updated with hardwood floors, granite countertops, high ceilings, and two fireplaces. Outside is a partial wrap around deck with a hot tub. It also includes a 24 hour backup battery in case of power outages. It's vicinity near Mission Springs in Scotts Valley puts you in a great commuting location to Silicon Valley
1 Bedrooms, 1 Bathrooms, 730sqft w/ 300sqft ADU
Listing at $749,000
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Events in Santa Cruz This Weekend |
The 2024 Scotts Valley Art Wine & Beer Festival
This premier summer festival in the Santa Cruz Mountains has something fun for everyone! Over 100 artists, live music, a kid zone, food trucks, a Cops Car Show on Saturday, Dog Day on Sunday, beer, wine, and more! Free admission.
August 17th & 18th 2024
Saturday, 10 am – 6 pm
Sunday, 10 am – 5 pm
At SkyPark 361 Kings Village Road
Scotts Valley, CA 95066
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This email is created personally by me every single week and hopefully provides value for you. Your info will NEVER be sold or given away for any reason. Thank you for reading this market update. This is created by yours truly and is not some "canned" data you get elsewhere.
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If you have any questions or would like to schedule a viewing, are in need of renovation guidance, would like to sell your home, or are just in need of a good plumber, feel free to call or email me anytime...seriously
Jesse Collins
831-227-9987
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