Fall real estate update
Real Estate in Santa Cruz has been pretty sluggish all summer. The statistics are pretty dismal. So far year to date the number of single family homes sold is down 336 from 2005, which is approximately 19% less. The homes for sale for September 2006 is up 371 homes from 2005, which is approximately 40% more inventory for the month alone.
But the good news is that the Feds have dropped interest rates back down to 6.25% with no points, or 6% with one point for the 30 year fixed rate. That is low as interest rates were fall 2005. I think the Feds are scared they have slowed down the housing market to far. With the stock market at an all time high, many investors are putting their money there rather than in real estate.
Locally, Sellers now understand the lack of buyers in the market, and have adjusted their prices to attract what buyers there are. Buyers should get out there and buy now before prices start rising again. And I think they are. So far in October the number of sales in my office is up from last month. So we are really hoping for a strong finish to the year.