We may be at the beginning of a market shift. Realtor.com’s Chief Economist Danielle Hale reports that Pending home sales remained lower than one year ago for the sixth consecutive month in spite of inventory beginning to become more available. Six months of declining pending home sales year over year suggests we are experiencing market movements that cannot be explained away by seasonal variation. According to Hale, a mismatch in price between what’s available
"A 10 percent increase in housing costs in a county is associated with a roughly 5 percent increase in housing costs in its neighboring counties." -California Legislative Analyst Office "Historically, Santa Cruz has provided housing base for major job centers located in Silicon Valley. This relationship has been one of the major drivers of housing demand, especially for single family dwellings in the above moderate household income category. Further, jobs in Santa Clara County
As we talk to clients, we are hearing a similar question time and time again: When Will Prices Go Down? Measures of housing affordability in Santa Cruz suggest that rising income levels in neighboring communities are pushing up housing prices. Santa Cruz residents are finding it challenging to afford homes and younger generations are leaving in search for lower-priced housing. To maintain a healthy, diverse, and vibrant community it's vital that local economic growth keeps
The truth is, homeownership is challenging for many right now because of high prices, high rents, and low supply. However, the state and local governments are working to remove barriers to development, improving the supply shortage in our state. Additionally, there are loan programs that are helping to break down walls to homeownership for new homeowners.
Historically high housing prices in Santa Cruz and the Bay Area are on the minds of many. It naturally follows to ask, are we in a housing bubble? A bubble occurs when prices are decoupled from the true value of an asset, and due to the expectation that prices will continue to rise, they do so until the bubble bursts. Therefore, the question is, are people buying real estate in the Bay Area simply because