Compelling Update:

We’re BACK in the Saddle again!   After 9 straight months of sales declines, we’ve had three straight months of increased sales.  Can’t consider that a Fluke. Home sales in Santa Cruz rose 8.7% in January compared to January 2005.  Home sales were up 9.9% in January and that is great news for Sellers.  The good news in all of this?  Buyers and sellers are finally making deals! Inventory fell 20.2% and is now at its lowest level since January 2006.

Home Prices, on the other hand, continued to fall for single-family homes with the median price down 1.3% from the month before, off 4.3% year-over-year.  The average price rose 2.9%, down 2% compared to last December.

For Buyers, the market looks to be tightening up.  That happened because Inventory is now at its lowest level since last February.  Prices took a tumble in last year from May thru December, but we expect them to firm up as the spring selling season begins.  If you are looking to buy, this may not be a bad time to do it, especially with mortgage rates at their low for the year. For sellers, if you really want to sell your home, you need to entice offers and then negotiate them. Remember, in a market like this, your first offer is very often going to be your best offer.

The real estate market is very hard to generalize.  It is a market made up of many micro markets especially here in the Santa Cruz County so call me to hear from the horse’s mouth what is up in your area.