Keeping you up to date with Santa Cruz Real Estate

Weekly Market Update

• The hottest zip code in the county in terms of the Market Action Index (ratio of inventory/homes selling) is Eastside (95062) with an index of 56 and a median list price of $1,656,500. *This is notably higher than many of the other zip codes.
• 27 properties sold in the county this week with an average sale price of $1,267,463.
• There are 463 active for sale properties on the market here in Santa Cruz County. This number is now gradually increasing after a relative stasis over the last month (This number is up from 451 last week).
• We are currently seeing a preference for larger homes in Santa Cruz and fewer transactions. This could be a sign that second home/vacation home buyers are sitting on the sidelines and waiting for lower rates.
• Mortgage rates hit the lowest point since May of last year after recession jitters swept financial markets earlier this week. While economists say a severe economic downturn isn’t imminent, the Federal Reserve will still move to lower interest rates at its September policy meeting. The housing market won’t recover overnight, but mortgage rates are projected to move lower in the coming months.

Santa Cruz News

Santa Cruz's Clocktower Project Will Likely Be Constrained to 8 Stories

The proposal for a 16-story mixed-use residential tower in Santa Cruz County has sparked significant debate, but it now appears that the community is moving past this idea. Sibley Simon, a partner at Workbench, the firm behind the proposal, stated that a high-rise of this scale at the northern edge of downtown Santa Cruz is financially unfeasible. Simon clarified that the project will likely be reduced to a seven-to-eight-story building due to the prohibitive costs of constructing taller structures that require more expensive materials like concrete and steel.

Simon emphasized that the financial hurdles, not political or permitting issues, are the main obstacles to building the originally proposed 16-story tower. The shift to a shorter building reflects the reality that wood-framed structures, which are less costly, are the more viable option for the area. Although this decision marks a step back from the ambitious original plan, Simon noted that future projects in Santa Cruz might eventually reach greater heights as costs decrease and financial risks are mitigated.

Market Matters

The Financial Markets Are Freaking Out. That Should Be Good For Mortgage Rates

Fears of a recession in the U.S. sent shockwaves through financial markets around the world on Monday. The Dow-Jones dropped 1,000 points by 10:30 a.m. Eastern time, the NASDAQ lost up to 6% of its value and Japanese stocks suffered their biggest crash since 1987, with the Nikkei 225 stock index dropping 12.4%.

The turbulence should benefit the U.S. mortgage market, which has already seen big interest rate declines in the past week following a Fed meeting that teased forthcoming cuts to benchmark interest rates, along with a much weaker-than-expected jobs report.

“Bond yields have made a huge move lower and have made a big move up; it’s market madness on Monday, the 10-year yield is only down a few basis points as of this second,” HousingWire Lead Analyst Logan Mohtashami said at 10:32 a.m. EST. “Mortgage pricing should be lower today, but the close of today with the 10-year yield is key because short term bonds are very overbought.”

Several loan officers and mortgage executives told Housingwire that they’ve been quoting even lower prices on Monday though they’re also having to fight for loans that were locked in their pipeline at higher prices.

James Kleimann, Housing Wire, August 5, 2024

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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US Market Summary

My Listings

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

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

Events in Santa Cruz This Weekend

Abbott Square: Artisan Faire

Head to Abbott Square every second Sunday of the month for free live music while you browse handmade jewelry, soap, clothing, and much more! There is always something at these events that has your name on it! 



August 11 @ 12:00 pm - 4:00 pm

18 Cooper St.

Santa Cruz, CA 95060