Is the Scotts Valley real estate market changing? It is if you compare it to the first half of the year that was hotter than a billygoat with a blowtorch as the first half reported a sales price to list price ratio of 102%. Closings from July 1st to present (August 27th) are showing an average sales price to list price ratio of 98.1%.
Currently there are 50 homes for sale in Scotts Valley, both single-family and condo-townhouses. Out of the 50, only 18 are pending which represents 36% of inventory being in contract, a stark contrast to 63% that we saw in June of this year.
In talking to other agents who are also doing a lot of business in the area, as well as me being out there showing and listing property everyday, the consensus is that it is more of a stabilization of the market as it could not sustain the pace it had the first half of the year. In the beginning of the year I predicted an 8% appreciation rate for 2015 and we may have already gotten there, or at least close to it.
But it’s not just the Scotts Valley real estate market we are talking about. If you recall, a few weeks ago I stated that the housing market was cooling a little and my analysis was met with a little skepticism, but just 2 days ago Zillow and the San Francisco Business Times came out with a story that the housing market was in fact cooling a little, even in the bay area. To read the article and story by the SF Business Times and Zillow, go to: http://bit.ly/1En3nbP
WHAT DOES THIS MEAN?
It is a good thing. As I said, we could not sustain the growth we had the first half forever. It is unhealthy when prices move up way too fast.
Move-up or move-down buyers have it easier as sellers are more amicable to those type of transactions.
Also, many home sellers are adjusting their price and once they do their adjustments to be “in the market”, they are going into contract pretty quickly.
HOME BUYER TIPS
If you are a home buyer, there are some decent deals out there. Don’t be afraid to negotiate or ask for closing costs, but don’t expect to steal anything either because well priced homes ARE STILL moving quickly.
HOME SELLER TIPS
If you are a home seller, the key is pricing your home right. Be “in the market” and not just “on the market”. Many home sellers were pricing their homes a little higher in the first half of the year to see what they would get, and some actually got their price. Right now you need to be priced right because buyers are taking their time and not paying more than value in most cases.
To be “in the know” read my Scotts Valley Real Estate Market Reports that are updated often at: https://myscottsvalley.com/category/realestate/
Robert Aldana is a 29+ year licensed real estate veteran with American Dream Realty in Scotts Valley, 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.
He was voted as the “Rave” winner in the category of “Favorite Real Estate Agent” in the Scotts Valley Press Banner’s contest for 2014, and also awarded the Scotts Valley Man of the Year in 2014 for his contributions to the community.
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”. Many of his articles and interviews can still be read at RobertAldana.com, DeadlineNews.com, RealtyTimes.com, Forbes.com, among many other real estate and finance news sites and publications.