http://blog.mysantacruzrealestate.com Market advice and tips on buying and selling real estate in Santa Cruz County Fri, 21 Nov 2008 09:54:40 +0000 http://wordpress.org/?v=2.5.1 http://blog.mysantacruzrealestate.com/4-common-mistakes-to-avoid-when-buying-santa-cruz-real-estate/#comment-1141 4 Common Mistakes to Avoid When Buying Santa Cruz Real Estate · Real-Estate-Investing.ExplainedOnline.Net Tue, 18 Nov 2008 00:53:29 +0000 http://blog.mysantacruzrealestate.com/?p=155#comment-1141 [...] Original post by Santa Cruz Real Estate [...] [...] Original post by Santa Cruz Real Estate [...]

]]> http://blog.mysantacruzrealestate.com/fall-real-estate-update/#comment-440 Lauren Wed, 08 Nov 2006 20:19:05 +0000 http://blog.mysantacruzrealestate.com/archives/8#comment-440 I do think the market will recover as the national economy recovers, and if interest rates remain low. That could be as soon as next year. From past historic statistics, Santa Cruz has approximately two more years of single digit appreciation, before rebounding with around four years of double digit appreciation. Historically that would mean, 2008 would be the year when values will go up again. There is an appreciation schedule from 1979 until 2005 on my website that would be interesting for you to look at. All that to say, it depends on the national economy, the war in Iraq, any catastrophic event or natural disaster to really determine the upcoming market. 2008 will be an election year too, and that will have impact on the market. The great thing about Santa Cruz is that we are on the coast, close to the Silicon Valley and San Francisco, and many people from the warmer inland areas like Fresno, Modesto, Sacramento want to come to the coast. So we have a lot of second home buyers & commuters that keep the Santa Cruz real estate market active. I think it is a good time to buy now and get the benefit of future appreciation. I do think the market will recover as the national economy recovers, and if interest rates
remain low. That could be as soon as next year.
From past historic statistics, Santa Cruz has approximately two more years of
single digit appreciation, before rebounding with around four years of double digit
appreciation. Historically that would mean, 2008 would be the year when values will go up
again. There is an appreciation schedule from 1979 until 2005 on my website that would be
interesting for you to look at. All that to say, it depends on the national economy, the war
in Iraq, any catastrophic event or natural disaster to really determine the upcoming market.
2008 will be an election year too, and that will have impact on the market. The great thing
about Santa Cruz is that we are on the coast, close to the Silicon Valley and San Francisco,
and many people from the warmer inland areas like Fresno, Modesto, Sacramento want to come
to the coast. So we have a lot of second home buyers & commuters that keep the Santa
Cruz real estate market active. I think it is a good time to buy now and get the benefit of
future appreciation.

]]> http://blog.mysantacruzrealestate.com/real-estate-update-2/#comment-237 Lauren Thu, 03 Aug 2006 19:43:31 +0000 http://blog.mysantacruzrealestate.com/archives/5#comment-237 That is a good questions. If you are looking to get into the market to make a quick dollar-- this is not the time. However, historically real estate has always been a long term winner outperforming most other investment sectors and staying ahead of inflation. While in some areas of the country the prices might make a dramatic drop, here in Santa Cruz that kind of thing is not going to happen. Santa Cruz is a small stretch of land wedged between the mountains and the ocean. It is almost entirely built out and has little potential for growth, keeping the property scarce -- you cannot just move a little further away and get a cheaper option (like in overpriced Sacramento). It is also a prime vacation and retirement spot and as such will not loose its appeal even if the market weakens. Prices have been inflated the last few years and so we are seeing the prices normalize. As interest rates increase, the purchasing power of buyers decreases. So while prices may go down, the total price paid can stay the same or even increase. The interest rate the past few years has been extremely low historically. Many forget that at the peak interest rates got to be almost 20% in the late seventies and early eighties. Getting into the game now and locking in a lower interest rate would be a smart move. That is a good questions. If you are looking to get into the market to make a quick dollar– this is not the time. However, historically real estate has always been a long term winner outperforming most other investment sectors and staying ahead of inflation. While in some areas of the country the prices might make a dramatic drop, here in Santa Cruz that kind of thing is not going to happen. Santa Cruz is a small stretch of land wedged between the mountains and the ocean. It is almost entirely built out and has little potential for growth, keeping the property scarce — you cannot just move a little further away and get a cheaper option (like in overpriced Sacramento). It is also a prime vacation and retirement spot and as such will not loose its appeal even if the market weakens. Prices have been inflated the last few years and so we are seeing the prices normalize. As interest rates increase, the purchasing power of buyers decreases. So while prices may go down, the total price paid can stay the same or even increase. The interest rate the past few years has been extremely low historically. Many forget that at the peak interest rates got to be almost 20% in the late seventies and early eighties. Getting into the game now and locking in a lower interest rate would be a smart move.

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