The Santa Cruz real estate market is an extremely hard cipher to crack. It seems that some market indicators in the Santa Cruz area are pointing towards a recovery both in real estate and the economy at large, while others suggest continued problems. Basically, everything comes down to how much credibility is lent to each piece of the puzzle. Some statistics might be artificially inflated by government action or a one time anomaly, while others might be skewed by the local real estate association or news media for ulterior motives. One such confounding factor is the eight thousand dollar tax rebate offered by the federal government to first time home buyers, which many experts believe artificially boosted the number of home sales, a bubble which most likely will pop after the rebate offer expires at the end of November.
An August 18, 2009 article in the Mercury News found that the median home price for Santa Cruz County continued to rise during the month of July. The piece, composed by Jondi Gumz, found 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. Ordinarily those statistics could signal a healthy market.” It continued to say that “More than 50 properties in foreclosure were scheduled for auction Monday, setting a record, according ot Liese Varenkamp, publisher of the Santa Cruz Record. Her publication reports more than 1,300 borrowers are behind in payments, and default notices are being issued at last year’s record pace. About 27 percent of county mortgages are “underwater”, meaning borrowers owe more than what the home is worth…”
Gary Gangnes of Real Options Realty stated that “the market is picking up everywhere.” However, Dean Baker of the Center for Economic and Policy Research said that “With interest rates having edged up and the labor market continuing to weaken, there is little basis to support any substantial upturn.” Basically, the only way to tell for certain where Santa Cruz homes for sale are going is to have some sort of crystal ball.
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