The Broker's Record

Home for the Holidays

December 24, 2005

Here it is, Christmas Eve, and I find that Santa has brought the good people of Santa Cruz a present: the median home price has continued to rise, up to $789,000 in November 2005. Just what every home buyer wants to hear! This was brought about by an unusually large percentage of over-$1 million homes. Interestingly, the number of sales has dropped considerably. In November 2005, there were 170 sales of single-family residences in Santa Cruz county; in November of 2004, there were 233! That’s quite a drop.

What does this mean for you? Well that of course depends on just who exactly you are! If you are a home buyer, don’t despair – the market has definitely softened. Inventory is rising, and now – the winter time – is the slowest time of the year for sales and so is actually the best time to make a purchase. There are more homes to chose from, fewer buyers in the market, and plenty of sellers getting antsy about the number of days their home has been on the market.

If you are a home owner looking to sell, don’t be bedazzled by the new median home price number. Rather, look at the nubmer of sales: they are dropping. Demand is softening up. You can still sell your home for top-dollar – it’s just that the top-dollar may not be as much as you thought it was. Price your home wisely, and do not count on getting as much for it as your neighbor got for his a few months back.

Happy Holidays everyone!

Posted by SantaCruzBroker at 7:02am
No Comments »

Below Market Rate Properties

December 10, 2005

This web site – most real-estate related web sites, actually – provide access to the MLS (Multiple Listing Service) as a way to provide listing information to clients, and especially as a way to entice new prospects to use a Realtor’s services.

I frequently receive e-mail from people who use the MLS search on this web site, asking questions about a listing they have seen. It may not surprise you to learn that the majority of this communication is about the cheapest properties on the market – often times about raw land, sometimes about mobile homes, and frequently about condominiums.

The condos I get the most questions about are the least-expensive condos…these tend to be the “BRM” units, or Below Market Rate. There are varying programs throughout the county, and in various cities, to create these BRM units.

An example of such a program is Measure O in the city of Santa Cruz. You can find out about Measure O here:

http://www.ci.santa-cruz.ca.us/pl/hcd/programs.html#MO

Another example is Measure J – similar to Measure O, but it is for the County of Santa Cruz, rather than the city itself. To read about Measure J, go here:

http://sccounty03.co.santa-cruz.ca.us/RDACalculator/

The Housing Authority of Santa Cruz County has a web page that summarizes the information about the various BRM and first-time buyer programs found throughout the county. You can visit that page here:

http://www.hacosantacruz.org/homebuyers/

One thing to be aware of with these properties is that often times they come with deed restrictions which limit how much the property can be re-sold for, and to whom you can sell it to. One of the primary advantages of buying a property is the prospect that it can be resold in the future for, hopefully, a great property – and with a deed restriction on your property, you may be losing one of the primary benefits of property ownership itself.

Posted by SantaCruzBroker at 4:59pm
No Comments »