Housing in Santa Cruz remains ‘seller’s market’
California’s Legislative Analyst’s Office reports six million people left the state between 2007 and 2016.
For many, the cost of living is just too high with housing prices often much higher than a majority of the country.
A modest three bedroom home on Malcolm Lane in Santa Cruz is going for a stiff price of $831,000.
One realtor says a couple of factors are making it tough for buyers.
“It’s still definitely a seller’s market at this point. Very limited inventory,” said Pat Simmons, a realtor with Bailey Properties. “Interest rates have creeped up, they’re about a half a point higher than they were six months ago on average.”
The average price of a Santa Cruz home is about $800,000. Simmons says the area still sees a lot of flow from Santa Clara and Silicon Valley. Many from there are buying second homes or properties for investment. He says that trend drives the price of homes upward.
It also drives many people out of the state looking for lower costs.
“Our real estate prices are higher than the majority of the country, especially the Midwest as an example or the deep South,” said Simmons. “But you’re also living in a friendlier environment as far as the winters or the summers as far as weather goes.”
According to zillow.com, the median price of homes currently listed in the United States is about $275,000. The median value of a home in California is $470,000. Compare that with $192,000 in Florida and $122,000 in Ohio.
With those prices, buyers here are weighing their options.
“It’s frustrating. I mean this is a nice house, I mean we would be fine here at this house if it was $300,000 less,” said Mary Keane, who went to the open house for the home on Malcolm Lane in Santa Cruz on Sunday.
Realtors like Simmons, however, say buying a house secures your future even if it seems daunting.
“Because you now control the fact that there is not a landlord telling you you have to move because I’m moving my daughter in or I’m selling this house to retire, this, that or the other thing,” he said. “You’re controlling your fate.”
