As you may remember from my post in December, the year in Santa Cruz County rounded out with an increase in unit sales of 17.7% from the previous month and an increase of 6.2% from 2010.

Fast forward to January 2012 and what a different picture. Unit sales declined 54% from the previous monthand 6.5% from the previous year. Despite high unemployment, slow economic growth and other problems plaguing the economy, most American households believe that now is a good time to buy a home.

Negative home-selling sentiment is strongly related to difficulty in finding buyers at desired sales prices, as well as the large overhang of mortgages past due or on foreclosure. But with only 6 months of inventory, most sellers should be excited over the turnaround.

Let us help you. If there is a specific area in Santa Cruz you are interested in, please give me a call at (831) 457-5510 to provide you the information you need. Have a great day!

December rounded out the year in Santa Cruz County with an increase in unit sales of 17.7% from the previous month and an increase of 6.2% from 2010.

The average sale price for single family homes ended up 5.5% below 2010 at $544,226 but the overall total volume was only down 1.6%.

Despite high unemployment, slow economic growth and other problems plaguing the economy, most American households believe that now is a good time to buy a home. I have seen an increase in the number of interested buyers and just had a listing go under contract in 5 days.

Negative home-selling sentiment is strongly related to difficulty in finding buyers at desired sales prices, as well as the large overhang of mortgages past due or on foreclosure. But with only 5 months of inventory, most sellers should be excited over the turnaround.

Remember the most important real estate market is the street where you live or want to buy. If you are curious about a particular area, please give me a call at (831) 457-5510 so I can give you the numbers that are specific to you.

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.