Quick Take:
The Santa Cruz County housing market has shown familiar trends this summer, and June was no exception. The market is busier than it was in the winter and early spring, with plenty of out-of-towners coming in to check out the listings and properties.
Santa Cruz County’s housing market saw similar busy trends in June as it did in both April and May, a common theme for the late spring and summer months. Realtors say that late June and early July brought in a lot of people from out of town looking to escape the heat, and some of those visitors took time to check out the housing market, too. Prospective buyers seem to be keen on properties that allow for a secondary unit on the premises as well.
Countywide, home sales in June were nearly the same as in May — 112 to 110, respectively, according to data from the Santa Cruz County Association of Realtors. However, that is lower than the activity from June 2023, when the county saw 150 sales — about a 25% decrease. Those 150 sales were the most in a single month since the beginning of 2023.
The countywide median sales price in June was higher than June of last year. It was $1,413,000 compared to $1,230,000 in June 2023, which comes out to a nearly 15% increase. Properties spent slightly more time on the market in June than in May, going from 27 days to 29. That’s the same as in June 2023, when the county saw home stay on the market for an average of 29 days as well.
The warm, clear skies of the late spring and summer always bring forth a more active housing market across the country. While Santa Cruz County’s weather is mostly similar year-round, the same rules still apply to its housing market. Santa Cruz County Association of Realtors agent Jennifer Watson said that the intense heat in the Central Valley and South Bay can cause residents to flock to Santa Cruz for the cooler coastal climate. She said that at an open house in Aptos last week, all but one attendee was from out of town.
“They say they’re so happy to be staying for the weekend or for the week, and some of them were really serious about looking for a home,” she said, adding that the already attractive Santa Cruz County market gets even more attractive when a far-reaching heat wave takes hold around the country.
Watson also recalls a conversation she had with another agent recently, who said that she recently spoke to buyers looking to move back to Santa Cruz just a year after leaving the area. Watson thinks the tight-knit feel of the community keeps people coming back.
“They miss the camaraderie of our town. Knowing that if you need a service, like a car mechanic, you know who’s best to go to,” she said. “You get that kind of feeling in a smaller town versus a big city.”
When talking to prospective buyers, Watson said that many ask about the possibility of second units and hope to find a property that would allow something like an accessory dwelling unit (ADU).
“It’s a mix of people wanting to have family, maybe aging parents, move in with them and people who want someone that can help with a mortgage by paying [rent] while they’re living at the property,” she said.
But mostly, said Watson, the housing market hasn’t offered up many surprises this summer. The trends are familiar and the volatility of the post-pandemic market has waned, as 30-year mortgage rates remain in the 7% range. Buyers have become more accustomed to that figure, and understand that’s likely here to stay — except for some possible minor movement.
“We do expect maybe one or two small drops [in mortgage rates] this year,” she said. “So we’re just staying the course and doing what we need to do.”