City of Santa Cruz Home Price Trend Results through mid March, 2012
So far, 83 Single Family Homes have sold in the City of Santa Cruz (through March 14th 2012). The average home sales price so far this year is $592,528. This compares quite favorably to the 104 homes that sold for an average sales price of $590,735 during the 4th quarter. Click here if you’d like to look at homes in the area that are for sale right now.
Here’s a chart showing the average sales price, compared to the average list price, over the last year. As you can see, prices are holding steady, and the discount between listing price and sales price is pretty slim at 2%, despite a dip to 3.75% in January.
CONDOS and TOWNHOMES
24 Townhome/Condominiums have sold so far this year, at an average price of $253,340. In the 4th quarter of 2011, just 18 condo/townhomes sold, at an average price of $272,967. Here’s a chart showing the average sales prices over the last year. Clearly, there is a disconnect between the stability of single family home prices and the declining prices for multi-family residences.
To find out why, I looked at the number of distressed sales. Shockingly – 17 of the 24 sales this year – a full 70% were distressed sales – either short sales or foreclosures. Only 1 condo/townhome priced over $500,000 has sold so far this year.
This is in sharp contrast to the first half of 2011, when just 22 of 50 sales -less than 50% – were distressed. 9 units sold for more than $500,000 during the first half of last year.
Conclusion: the prices of condos and townhomes are unusually depressed and out of synch with single family homes here. When we look back, this may turn out to have been an unusually attractive investment opportunity.
Click here to get a free, no obligation estimate of your home or condo’s current market value.
Source: MLSListings.com, closed escrows of single family homes, condo/townhomes, through mid-day March 14, 2012