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) remains the Eastside (95062) with an index of 52 and a median list price of $1,894,000.
• 22 properties sold in the county this week with an average sale price of $1,260,818.
• There are 497 active for sale properties on the market here in Santa Cruz County. (it was 498 last week). Inventory growth has reached a stasis between buyer and seller demand. If rates continue to drop, inventory will decrease respectively.
• The average sales price in Santa Cruz County is up 6% YTD and the number of sales is up 9% over this time last year.
• It is unlikely prices will see renewed downward price pressure, meaning, a price crash is highly unlikely.

Client Testimonial

Real estate transactions are some of the biggest decisions we make in our lives. The ability to have a positive impact on someone’s life and help them build wealth through real estate is an incredibly rewarding job to have. Reviews like this are why I do what I do. Thank you Bill for being such a great client and for giving me such a gracious review.

Local News

161 Homes Proposed on Graham Hill Road near Scotts Valley

Forty acres of horse pasture on Graham Hill Road near Rollingwoods Drive could be transformed into a 161-unit development of houses and townhomes, according to a recent pre-application to Santa Cruz County planners. Although the development far exceeds county development rules, state law allows the development and county staff and supervisors have very little leeway to block or change it.

The project, called The Haven, would include:

• 117 market-rate single-family homes.
• 11 market-rate townhouses.
• 7 moderate-income townhouses.
• 26 low-income townhouses.
• A community building.
• 14.3 acres kept undeveloped and connected with existing hiking trails.

When developers submitted a pre-application for the project, the county did not have a valid Housing Element of the county’s General Plan. It is a state-mandated housing development plan. 

When local governments don’t have a state-approved Housing Element, state Builder's Remedy rules are in effect. According to those rules, most projects with at least 20% affordable housing can bypass local restrictions on housing. 

Market Matters

Forecast Remains Mostly Sunny for Real Estate Investors

Real estate investors continue to forecast mostly sunny skies for their businesses, according to quarterly survey data released Wednesday by RCN Capital and the CJ Patrick Co. The companies’ Fall 2024 Investor Sentiment Index showed that 68% of investors view the current housing market as “better” or “much better” than it was a year ago.

This compared favorably to the Summer 2024 iteration of the survey, where 60% of respondents expressed a positive outlook. Conversely, the share of investors who view market conditions as “worse” or “much worse” shrank from 20% to 13% during this span.

Looking ahead, 71% of investors expect the market to improve in the next six months, while only 9% think that conditions will worsen. That is the largest gap between positive and negative sentiment in any of the six surveys conducted by Connecticut-based mortgage lender RCN and business advisory firm CJ Patrick.

“Investor sentiment is almost twice as positive today as it was in the third quarter of 2023, and they’re even more optimistic about the future,” RCN Capital CEO Jeffrey Tesch said in a statement. “It seems likely that investors are reacting to improving market dynamics — financing costs declining, the inventory or homes for sale increasing dramatically, and home price appreciation slowing down, but still rising.”

Other Headlines

-Powell Says Recession Risk Gone, but Housing Inflation Will Persist for ‘Some Years’: After more than two years of heavy-handed rate-raising by the Federal Reserve, which was largely responsible for putting the brakes on a historically hot pandemic housing market, Fed Chair Jerome Powell yesterday explicitly said that the central bank believes the country has avoided a recession and navigated a so-called “soft landing”—but still sees housing inflation as something that will linger longer than expected.

-Foreign Investors Purchase $42 billion in US Homes: This is a 21% decline over this time last year, Florida remains the #1 state for foreign investment.

-People Are Still Moving at Scale From Fire-Prone to Heat and Flood-Prone America: According to Redfin, scores of people are moving from parts of America endangered by wildfires to areas endangered by flooding and extreme heat -- even as those dangers become more frequent and intense..

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

Coming Soon: 1485 Dougmar Drive, Santa Cruz- This 2,000 sqft 3 bedroom, 2 bath home was purchased by my client off market and has gone through extensive remodeling and will be on the market shortly. Improvements include: new roof, new flooring, new doors, new windows, new on-demand water heater, new bathrooms, new kitchen, new lighting throughout, landscaping, fresh paint, and much more.

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

Downtown Santa Cruz Harvest Festival

Get ready for a celebration of autumn’s abundance at the first annual Harvest Festival! Enjoy a day filled with fun, food, and festivities under the crisp fall sky. This family-friendly event brings together a wide variety of local performers, artisans, food vendors, farm stands, classic carnival games and crafts. 

• Carnival Games: Enjoy classic carnival games like Dunk Tank, Striker, Glitter Tattoos, Face Painting, Dime Toss, Plinko, Froggy Fly, Corn Hole, and Foosball.
• Food: Savor delicious fall flavors with popcorn, elote, churros, Izzy’s Ices, Dos Hermanos Pupusas and more!
• Live Music: Experience the lively sounds of local musicians, including the Rhythm Rangellers
• Wreath Making: Free fall craft sponsored by the Santa Cruz Community Farmers’ Market
• Rodoni Pumpkin Sale: Buy some pumpkins in a setting you are sure to remember.
• Garden Variety Cheese Farm Animal Meet and Greet: Rebecca King brings baby sheep, ewes and chicks for viewing and handling.
• Bouquet Making with Sea to Sky: Pick out seasonal flowers and arrange them with support from the Sea to Sky Farm team.

Look for the festival tents and hay bales on Lincoln Street between Pacific and Cedar.

Saturday October 5, 12-5PM

8AM-8PM

Pacific Avenue Between Water and Locust Streets

Santa Cruz, CA 95060