The current Santa Cruz Market
The real estate market has been very sluggish this summer. Rates for 30-year mortgages just hit their lowest point since April (at 6.55%, down from 6.85%), and yet the market is totally lagging from last year (look at the statistics on the back of this newsletter). 1358 current homes for sale in July with only 147 sales. Compare those to 2005 with 192 sales and 845 homes for sale. The good news is historically the number of sales for August and September are much better than in July and already August it is proving to have quite a few more sales than July. The result in the lagging market is that many sellers are adjusting their selling prices to reflect the abundance of competition. If only 10% of the homes are selling, and you want to sell, then having a home that is in good condition, shows well and is priced aggressively will set you apart from the competition. Buyers today seem to be afraid of paying to much for a home, so they are really negotiating. An article in the Contra Costa times said “Many sellers did not acknowledge the shifting housing market and held out for higher prices despite pleas from agents. People are now waking up and making price reductions. We ask sellers ‘If next week you had to buy your house back at the same price, would you? And if they can’t say yes, then no one will.I think any home can sell, even in a changing market. Being the best value in your price range will set your home apart. It seems to be a great time for buyers to buy. It is a challenge to adapt to a new market. We had been so spoiled the past few years.
Blog me, I’d love to know what you think.