Two people standing in front of home with a For Sale sign

At the beginning of 2024, home prices across the U.S. were still climbing, but mortgage rates were at their highest in two decades. The high costs of buying a home and the shortage of available houses made many buyers think twice, leading to a decrease in market demand. As we near 2025, experts are cautiously optimistic that a slight drop in mortgage rates and a decrease in inflation could offer some relief. However, this relief will take time, and housing affordability will still be a significant problem in many U.S. markets going into 2025.

The Santa Cruz real estate market is anticipated to follow a similar path, but a few local elements set it apart. With its breathtaking natural beauty and closeness to Silicon Valley, this seaside location…

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Profile of Buyers and Sellers

Highlights

This year's report reveals that home buyers are struggling due to high mortgage rates averaging 7. 02 percent and rising home prices, making it hard for first-time buyers to achieve their goals. First-time buyers fell to 24 percent, a significant drop from 40 percent before 2008. The median income for first-time buyers is $97,000, while their average age is now 38.

There is a contrast in the market, as repeat buyers can offer larger downpayments, benefiting from increased housing equity. The median age for repeat buyers is 61. Many buyers, especially married couples, preferred using real estate agents and reported being satisfied with the buying process. Sellers typically sold homes at asking prices within three weeks.

Reprinted…

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The real estate market in Santa Cruz County remains robust, with the median sale price for residential properties reaching an impressive $1.2 million over the last 90 days. This figure, based on a substantial sample size of 414 closed sales, reflects the continued high demand for housing in this desirable coastal region. Despite the lofty price point, properties are moving quickly, with a median days on market of just 21, indicating that well-priced homes in good condition are being snapped up by eager buyers. The average price per square foot now stands at $803, a testament to the premium that homebuyers are willing to pay for the lifestyle and amenities that Santa Cruz County offers. With its picturesque beaches, redwood forests, vibrant communities,…

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Imagine you've found a gorgeous new house in the Santa Cruz hills, the California coast, or the quaint hamlet of Capitola and are ready to relocate. You tell yourself, "This is such a great deal; I can't wait to move in," so you buy it. However, as you expected a swift sale of your present house, viable bidders began to back out. Suddenly, you're faced with the frightening prospect of supporting the expenditures of two residences at once. There have been examples in Santa Cruz when homeowners have had to dramatically drop their asking price to sell their present residences. It is a tough situation to be in.

To avoid this, sell one house before buying another. However, as we all know, this is only sometimes as easy as it sounds. With a few carefully…

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