AGENT MLS HOME FINDER

Capitola real estate is very closely tied with the economy and real estate market of the nearby larger city of Santa Cruz, California. Like Santa Cruz, properties in Capitola have been in a state of steady decline since the advent of the national economic downturn during the second half of the year two thousand eight. These adverse conditions, coupled with the woes of the Californian economy in particular, caused property values to fall, declining rates of home sales, and lower rates of foreclosures. It is possible, however, that these problems are going to give way to more positive indicators in the upcoming months. The statistics that are normally used to assess the health of a real estate market are not as helpful currently, particularly due to the continued volatility of the market and the existence of numerous confounding factors.

One piece of evidence pointing towards the woes of Capitola homes is the decline of property values and consequently property taxes. According to an August 9, 2009 article in the Mercury News, “Nearly 12,000 county residents will get a break on their property tax bill this year as the result of new property assessments submitted by the county Assessor’s Office. The reductions are the highest number of adjustments in county history and signal just how weak the real estate market has gotten, even in places such as Santa Cruz, where property values have traditionally remained stable in spite of changes in the economy.”

The Santa Cruz Sentinel reported on August 11, 2009 that foreclosures continue to create trouble for both borrowers and banks, stating that “Locally, 1,261 have received default notices this year compared to 1,218 at this time last year, which set a record for borrowers in trouble.” On the other hand, an August 18, 2008 article in the Mercury News seemed to suggest that the real estate market was starting to recover, finding that “The median price for single-family homes in Santa Cruz County, rising steadily since $399,000 in February, reached $520,000 in July. Sales were the highest in three years. Listings have dropped for eight straight months. About six months’ worth of inventory is available, heralding stable prices.”