So what does 2012 hold for real estate? As always, the story will be local. Remember the most important real estate market is the street where you live or want to buy.

While many housing markets rose together during the boom and fell together during the bust, they’re exiting the downturn at different speeds, and so it’s not very useful to talk about a “national” housing market.

In Santa Cruz, the issues will be unemployment, jobs, inventory, lending requirements and of course price. The unemployment rate has been higher in Santa Cruz County than in the State of California. Jobs are very hard to find as there are no major employers other than UCSC and the County which have both experienced cutbacks.

The inventory has declined 19.5% since the same period last year. Overall average selling prices on single family homes has declined 5.5% in 2011 as compared to 2010.

For complete statistical information on the real estate market in Santa Cruz, contact me at (831) 457-5510.