Santa Cruz County Real Estate Report for December 2007

SALES MAY BE DOWN, BUT APPRECIATION UP....

Looking over the real estate market stats for the last 12 months leads many to believe it will end up being a 'bad year'. Sales are at their lowest level since 1992, when the average price was a whopping $254,000 and appreciation was a 3.5%. 2007 will most likely end up with over $1B (that's correct billion) in total sales, the average price most likely in excess of $850,000 and appreciation an estimated 3.0%.

So was this year actually all that bad in our County? Or is it just a factor of the amount of existing inventory? Take a look at these inventory numbers from previous years...........
December 2000 = 3.2 months
December 2001 = 4.2 months
December 2002 = 3.3 months
December 2003 = 2.3 months
December 2004 = 1.7 months
December 2005 = 4.3 months
December 2006 = 4.4 months
Estimated December 2007 = 12.1 months

C.A.R. Reports entry-level housing affordability at 24% in California, unchanged from the same period a year ago, according to C.A.R.'s First-time Buyer Housing Affordability Index (FTB-HAI) released Nov. 29. (It was 14% in November of 2005.)

Interest rates on long-term mortgages hit 2-year low, averaging 6.10% for the week ending Nov. 29, down from 6.2% the prior week, and 6.14% a year ago, according to Freddie Mac's Primary Mortgage Market Survey®. Rates have not been lower since they averaged 6.03% in October 2005.

NAR Supports Administration efforts on rate freeze as important step in protecting homeowners. The dream of homeownership should not turn into a family’s worst nightmare,” said NAR President Richard Gaylord, a broker in Long Beach, Calif. “As the leading advocate for housing issues, NAR has been working with Congress and the administration to protect homeowners who may be facing foreclosure as the result of predatory lending practices and as the interest rates on many subprime loans reset.

The loan modification program introduced by President Bush and U.S. Treasury Secretary Henry Paulson is a good first step in helping deserving families keep their homes.

Here is what is happening in our local Santa Cruz County market:

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November Monthly Statistical Highlights for Single Family Homes:

* Inventory up 9.1% compared to November 2006, but decreased 2.4% from October 2007
* Sales down 47.8% compared to November 2006, and down 20% from October 2007
* Days on the market increased to 110, month prior 106, one year ago 105, two years ago 52
* Median home price decreased from the prior month to $740,000, and increased 2.2% from November 2006
* Sales price vs.listing price ratio decreased slightly to 96.55% from October
* Month's worth of inventory County wide equals 12, compared to 6 in November 2006 and 5 months in November 2005
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(These statistics are believed to be accurate but not guaranteed)