As the rainy season gives us all a break with only 2 days of rain over the next couple of weeks, according to weather forecasts, home buyers should see some relief in terms of more home inventory in the Scotts Valley area as the rains had put a damper on home sellers who are wanting to sell their homes.
As it stands today, February 24th, 2017, there are only 20 total homes for sale in the 95066 zip code with 16 being single family homes and 38% being in pending/contingent status. That means that only 10 single-family homes are currently available for home buyers looking to buy in Scotts Valley.
In our last real estate broker tour meeting yesterday, the consensus seems to be among the real estate industry that we are about to see an increase in homes for sale soon and I have to agree with that as I myself have been contacted by numerous home sellers in the Scotts Valley area in just about every area of Scotts Valley from North Scotts Valley to the Rollingwoods area by home sellers who are wanting me to come out and give them a property analysis of their home because they are looking to upgrade, downsize or move out of the area. Interestingly enough, none of the home sellers has wanted to make a move out of the area because of this season’s commute issues, most are staying local in this town, with a couple of exceptions.
While I am sure there will be some home sellers this spring looking to move because of the commute issues, I see that as far and few in between as the commute issues due to road conditions have been more of an aberration than the norm. Not to downplay the situation, because it has been brutal for many, but the cleanup and repairs of 17 and other arteries took place rather quickly and are still being tended to as we have the right weather to deal with them.
Currently and year-to-date, there have been 17 closings which is almost double the amount of closings in the same time-frame as 2016 which had 9. That means that regardless of the weather, buyers have still been out there buying homes, but the days on market has increased to 46 before a sale which is 6 more days than the 40 DOM of 2016. Not much of a difference, but still worth noting.
Right now there are 5 condos and townhouses with 3 of those 5 being in pending-contingent status so there are only 2 available.
Slim pickings right now for sure.
So what is to come?
At this moment, I have received phone calls and had appointments with home sellers with homes in the 2 bedrooms, 3 bedrooms, 4 bedrooms and 5 bedrooms in all areas of Scotts Valley from the mid $600k price point, $800k price point, to the $1.5 million dollar price point. To me is a healthy dose of new inventory as there are currently many home buyers in all price points and this should make them very happy.
Speaking of new homes coming up, there are also about 4 new home developments or home projects that should see a lot of completion with brand-new homes coming on the market in 2017. With the two single-family and townhouse developments on Scotts Valley Drive along with some homes being built in the Polo Ranch Barn area, home buyers will also get a chance to buy these homes towards early summer through the end of the year as different projects are in different stages of being built.
January 5, 2017: I stated last year that I thought that 2016 would be the last hurrah of crazy appreciation rates and… I think that I am going to stick to my prediction, for the most part. I see home prices doing well this year in the area and in the Bay Area, I just do not see how we could see another crazy appreciation this year in Scotts Valley, because at some point everyone gets priced out. – Robert Aldana, Click here to read article
When doing my predictions for 2017 in an article I wrote on January 5th, I predicted that we would have a good and strong market this year but not as strong as 2016. Local and National real estate experts and economists have also come out supporting this theory and I will stand by my initial prediction. Of course, I could be wrong and the market can be even stronger than last year in terms of appreciation, only time will tell, but I feel good about my thoughts on 2017 so far.
I think that rise in interest rates from the 3.5% range to the low 4% range will have minimal impact on our market. Interest rates in the 3.5% range are not your typical rates and are more of an aberration than the norm. Many experts are predicting rates to rise even higher in the latter part of the year, and that could be the case, but I do not see much of a rise at any time soon if that. I see rates staying pretty close to what they are doing right now for a while.
Home sellers, get in touch with your agent and get the process of getting your home ready and go local with your agent. I cannot stress this enough as local agents know your local market better than out of area agents. Insist on and make sure you also have a strong marketing plan that includes a strong social media platform as social media is really where its at, along with a great visual presentation of your home via professional photography and video.
Pricing your home properly is also a major MUST as over-priced homes sit and sit and end up costing you money when they sell for less as home buyers tend to bid lower on homes that have been on the market longer.
Also, if you are wanting to make a move and fear that you may sell your home and not find another, you have two options that should eliminate the risk of being left out on the street without a home if you sell your home and not find another. To protect yourself, you can either list your home and make the listing and sale subject you you finding another home within a certain amount of time, or you can look for a home first and make an offer contingent upon you selling your home. The latter part is the most common, but you also have to make sure you price your current home properly to get it into contract because if you come in with an offer on a home subject to you selling, any knowledgeable and experienced agent will want to what you intend to list your home at because they know that if it is not presented and priced properly, it may not sell and in a competitive market, its a tough sell getting your contingent offer accepted.
Home buyers, get your pre-approval as soon as possible and do your homework on areas that you want. Be ready, homes in all price points are coming soon!
As always, Happy Selling and Happy Buying!
REALTOR® since 1986
BRE # 00921165
Keller Williams Realty
831-252-3959 Direct Line
Robert Aldana is a 30+ year licensed real estate veteran with Keller Williams Realty, and also a long-term resident and homeowner here in town. He is the founder of MyScottsValley.com and the popular local news and events page at Facebook.com/MyScottsValley.
Robert was also a nationally syndicated real estate journalist and was a highly sought after interviewee on the topic of real estate by local, national and even international media, in addition to appearing on HGTV and local NBC’s “Best of the Bay”.
Robert was recently awarded the Santa Cruz Sentinel Readers Choice Award as the Best REALTOR® in Scotts Valley for 2016. Click here to read more.