Posted by Pam Spehar on February 23, 2009 at 6:06pm
The Santa Cruz real estate market typically trails behind the Santa Clara County market. Buyers have been waiting for the market to hit bottom. I wish I had a crystal ball and could see the future. Is the market at the bottom? We just don't know. I do know there are excellent property at good prices for buyers. You can purchase a single family 3 bedroom home for $250,000 in the Santa Cruz Mountains. Be ready to offer. The properties in Santa Cruz mountains that are priced right are selling quickly and with multiple offers. YEP. If you are buying and want a deal and offer less than the drastically reduced price the bank is offering you will loose because once the race starts you best be ready to go for it. Banks are also reassigning property to a new agent after 90 days on the market if it does not sell. The property will be reassigned to a new realtor at the reduced price and the property is selling in less than 30 days because the bank realized the price was too much for this market. The reassigned realtor has the advantage with the lower price and the fresh listing. I am seeing those property going going and GONE. Maybe we are approaching the bottom and the prices will start leveling off?Most sellers are being advised to let the market settle down before they list their property. If you are a seller who needs to move, be prepared to set a market price that is between the short sale and bank owned marketing prices. A well maintained property will be more desirable than bank owned property for obvious reasons. A seller who has taken care of their property has the value built into the structural bones of the property. One never knows what the bank owned property bones are, there is no disclosure and banks are not required to disclose the condition. Whereas the home owner knows all about the condition and provide the complete disclosure package with the sale of the property. So the seller who sells and buys another home will do very well. They will be purchasing during a low market and will get the benefit of the lower tax rate with the new home. If the seller has owned the property for 8 or more years they will not loose, if the seller has not refinanced the equity out of the property. Property values in Santa Cruz mountains were going up 25% per year for 5 years so as the market levels out from the over inflated market we experienced sellers are still in good shape if they have owned the property for 8 years or more. If the seller has purchased in the past 3-4 years the value is lower than they purchased. So if you own a property you have recently purchased, HOLD ON if you do not have to move. If you need to move be realistic you sell at the reduced price and you will also be purchasing at the lower rate where ever you go as the entire nation the market is suffering from the housing crash.The real estate world is not so bad. You can sell at the reduced price and if you purchase some where else you will get the reduced sales price on the replacement property. If you buying the market is ready for you now, go for it. If your an investor Oh My Gosh, they just increased the limit to 10 and you can actually purchase a property that will cash flow with 25% down. YEP the real estate market is great. It is just too darn bad know one knows it right now. Once the buyers figure it out everyone will have figured it out. And that is the way the cookie crumbles.
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