Santa Cruz County Market Update – September 2022
Below is the Santa Cruz County Market Statistics for the month of September ’22. Here are the highlights:
– Active Inventory ticked up slightly, increasing 1.7% from August ’22 to September ‘22
– The median SFH sales price decreased to $1.20M from $1.30M the month prior. September ’22 median home price is up 1.7% to September ’21.
– Number of Sales decreased by 9.5% from August and is down 28.6% from September ’21.
– Days on Market in September ’21 was 23. Days on Market in September ’22 was 31.
Interest rates continue to have an impact on both the supply and demand in our market. On the supply side, sellers have too much equity to be forced into sales, even if the market turns. They are also hampered by capital gains tax they’ll incur after years of appreciation. Mainly though, what happens if they sell? Where do they go? They give up their historical rate and jump into a much less friendly market. This has all led to record lows in new inventory. In fact, the new inventory for September was the lowest it’s been in 12+ years. On the demand side, interest rates have certainly cooled the market. The number of sales for SFH in Santa Cruz County in September ’21 was 185, in September ’22 it was 132. Homes are staying on the market longer and are selling closer to the list price, on average. The pricing is still stronger than last year. The Median home price is up 1.7% and the Average home price is up 13.2% from September ’21. Buyer’s expectations had adjusted to our new norm but will need to continue adjusting as rates rise.
