Santa Cruz County Market Update – April 2023
Below are the Santa Cruz County Market Statistics for April ’23. Here are the highlights:
- Active Inventory increased by 13.7% from March ’23 to April ‘23. Active Inventory is up 11.5% from April ’22.
- The median SFH sales price for April was $1.35M, up 13.4% from the month prior. April ’23 median home price is down 4.3% from April ’22.
- Number of Sales decreased by 20.8% from March ’23 and is down 58.2% from April ’22.
- Days on Market in April ’22 was 15. Days on Market in April ’23 was 38.
April gave some interesting data points that can help show where we are and where we are going. The first thing that becomes clear when looking at the data is that the real estate market has been very slow. Mostly the result of raised interest rates, uncertain market conditions, and a lack of supply in our market. Just look at the difference in closed sales between the 76 homes closed in April ’23 and the 182 homes closed in April ’22. The second thing we can glean from the data is that demand is increasing. The median home price is up over 13% since last month, the average price is up over 7%, and homes are 7 days selling quicker, on average. Projecting out where our market is going, let’s start with the short to midterm. Over the next three months, demand will continue to rise until peaking in mid to late summer. Supply will continue to be suppressed as homeowners hold onto their artificially low rates. Long-term new inventory supply is going to continue to be historically suppressed resulting in upward pressure on pricing.
