Quick Take
Santa Cruz County home sales were strong in November, reaching a three-year high for the month. Real estate agents point to several factors including good weather, a Fed rate cut and a post-election boost.
Last month was a busy one for the Santa Cruz housing market, relatively speaking, with the highest number of November sales in three years.
Countywide, there were 111 homes sold in November, compared to 135 in October, according to the Santa Cruz County Association of Realtors, a 17% decrease. However, the number of sales last month was much higher than the 69 in November 2023. It was also higher than the 87 in November 2022.
Aptos, Santa Cruz and Watsonville had the busiest markets, as usual. Homes averaged slightly longer times on the market in November than October, at 45 days to 40 days, respectively. Properties also spent longer on the market than in November 2023, when they were on the market for only 36 days.
The median sale price of $1,300,500 in November was up less than 1% compared to the same month in 2023, up from $1,292,500.
Anderson Christie Real Estate co-owners Marvin Christie and Dave Anderson said the busy November is likely driven by changing attitudes among buyers who are getting used to comparatively high interest rates. The Federal Reserve cut its benchmark short-term rate in mid-September, though 30-year mortgage rates remain in the 6-7% range, far above the 3% buyers were accustomed to during the pandemic.
The relatively dry weather in November also helped. “People are looking at properties that otherwise wouldn’t if it’s pouring rain,” said Anderson, adding that he heard of a Bonny Doon property receiving about five offers recently, even though mountain properties are often less popular in the winter. “It does seem like open houses have been well attended and buyers are looking.”
Monterey Bay Mortgage adviser Scott Goodrich said that cuts to short-term rates likely helped prospective buyers psychologically, even if long-term mortgage rates have not fallen in tandem. Christie agreed.
“We had a little dip in the long-term rates and then they bounced right back up to where they were,” Christie said. “So people emotionally think that rates have come down and are on their way down, but we haven’t seen the facts of it yet.”
He added that election uncertainty likely caused some buyers to sit on the sidelines. Now that the election is over, people are entering the market once again.
“I don’t think anyone likes uncertainty when they’re making a big decision like this,” he said.
Santa Cruz County Association of Realtors agent Jennifer Watson said the November bump is “exciting.” She, too, attributes the uptick to both buyers reaching a higher level of comfort with the current mortgage rates, and slightly more homes on the market.
“That gives everyone a little bit more breathing space, and buyers can have a few more [homes] to choose from, and maybe better terms,” she said.
Watson said she and other agents are looking forward to a drop in mortgage rates next year. Goodrich said he is as well, but added that the incoming Trump administration’s policies could affect the market.
“For example, we’ll see how tariffs come into play, because those put pressure on prices and inflation, which could cause the Fed to slow down short-term rate cuts,” he said. “But I’m hopeful that the bump will continue.”
Despite the uncertainty around Trump’s economic policies, just the election being over likely helped the market, said Goodrich: “It provided at least some clarity around the new administration.”
Real estate agents say the strong November market is a likely harbinger of things to come in 2025.
“I feel like this is a sneak peek for next year,” said Watson.
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