You would think that a pandemic, power outages and wildfires that caused evacuations would slow down a real estate market. But not here.
So what is the Scotts Valley real estate market doing?
Well, let’s put it this way: I consider anywhere from 28% to 35% pending sales (the amount of homes with offers accepted and in escrow that are on the market) a good market that leans slightly towards a seller’s market. Right now there are a total of 58 single family homes for sale and 29 of them already are in contingent-pending status. That is exactly 50% of single family homes right now in Scotts Valley already being in escrow.
And that is because there were a total of 20 homes that went on the market since September 1st or else that figure would be higher.
Condos and townhouses are even hotter right now (but ytd figures differ) with 19 total on the market and 11 are already in contingent-pending status.
- This home at 200 Old Coach Road in Scotts Valley sold for $100,000 over asking (closed at $1.5M) in 8 days, having closed September 1, 2020
BY THE NUMBERS
The average list price for all single family homes that are both active and in escrow is $1,607,463.
The average list price for condo-townhouses that are both active and in escrow is $749,142.
The average Year-to-date (YTD) figures are as follows, with a direct comparison to 2019 on the right:
TOTAL # OF CLOSINGS: 153 total (15 less than 2019)
Single Family Homes
TOTAL: 105 (26 less than 2019)
AVG LP: $1,159,684 ($136,508 less than 2019)
AVG SP: $1,161,790 ($106,096 less than 2019)
SP to LP Ratio: 100% (2.2% more than 2019)
AVG DOM: 28 (9 days less than 2019)
TRANSLATION: The above translates to a hotter market this year versus last year because days on market are less and sales price to list price ratio is 2.2% higher this year than last year. The average list and sales price only means that lower end homes are hotter this year, not that they have come down in value. Lower priced homes are red hot.
Condos and Townhouses
TOTAL: 47 (10 more than 2019)
AVG LP: $783,912 ($116,336 more than 2019)
AVG SP: $784,191 ($122,286 more than 2019)
SP to LP Ratio: 100% (1% more than 2019)
AVG DOM: 37 (6 days less than 2019)
TRANSLATION: Condo and townhouses this year are behind single family homes this year versus last year and versus traditional years when condos and townhouses fly off the shelf. They are still doing great, but several new townhouse developments in town have skewed the numbers a little as a few developments have taken longer to sell.
If you read my article a few months ago where I predicted that we would see a lot more buyers coming this way due to the pandemic having many more buyers being able to work from home that are now wanting to be in places like Scotts Valley due to the mountains, outdoor activities like hiking and biking along with being minutes to the beach, that is exactly what has been happening. Many articles have come out since then stating the same and I am seeing it as a full-time real estate professional specializing in Scotts Valley.
I think there could be a slight cool down as we head into October, but not by much. We will see it cool a bit more just before Thanksgiving and through the end of the year although I can see the real estate market continuing to stay active even through the holidays.
Inventory is low and rates are even lower. Living here and working from home is a win-win for many people that were living over the hill. As stated in my previous article, this is much more affordable than Silicon Valley housing prices and you get mountains, hiking and biking trails and of course our beaches. Buyers can now have their cake and eat it too.
HOME SELLER TIPS
Price your home accordingly. If you are not implementing property websites 3D virtual tours, professional photography, floorpans and video you are missing out as buyers are not out on the road as much as they used to be. 24 hour open houses using the technology stated above is what buyers are doing to see homes. Now is not the time to be cheap with your marketing.
HOME BUYER TIPS
Homes are selling at asking price on average, with a few selling for quite a bit more. Do your homework, read disclosures and inspections and make your move when you find the right home. There are very little bargain shopping opportunities right now, you will pay what homes are worth.
As stated above, this strong housing market should stay like this for at least another couple of months until Thankgiving and then a slight cooling through the rest of the year, but not by much.
And as always, Happy Selling and Happy Buying!
REALTOR® since 1986
DRE # 00921165
Keller Williams Realty
831-252-3959 Direct Line
ABOUT ROB: Robert Aldana is a 34+ year licensed real estate veteran with Keller Williams Realty, and also a long-term resident and homeowner in Scotts Valley.
In 2015, 2016, 2017, 2018 and 2019 Robert was the agent chosen by more Scotts Valley area home sellers and buyers than any agent or team, and Robert was awarded the Santa Cruz Sentinel Readers Choice Award as the Best REALTOR® in Scotts Valley for four straight years 2016, 2017, 2018 and again in 2019. Robert is also the ALL-TIME leading real estate agent in Scotts Valley sales, and most recommended agent in the NextDoor online community. Read the over 60 “Five Star” reviews at www.robertaldana.com/testimonials