Scotts Valley Real Estate Market Goes into Holiday Mode

As we dive right in to the holidays, the Scotts Valley and local real estate market has gone into sort of a hibernation phase as we see the “pending sale” ratio at 20%, which means one in five homes on the market here is pending (or contingent). That is a relatively low percentage and not entirely out of the norm during this time of the year, but a little lower than normal.

To put it into perspective, during strong markets, not markets that are on fire but a strong market typically has a 33-35% pending sale ratio which is about one in three homes being pending.

But again, the holidays many times slow the market down as it does every year. The only surprise was rates not continuing to come down as many predicted or thought that they would, which would have heightened the activity level of home sales.

Homes Selling Close to Asking on Average

Year-to-date homes sales in the Scotts Valley area have closed at 99.6% of asking price. Since August 1st, that number is at 99% which also accounts for homes that went pending in late June or July and also those that have went into contract over the past 30-45 days.

Average Sales Price Up

The average sales price this year so far is coming in at $1,628,209 for single family homes and $1,479,101 combined with townhouses and condos.
Last year, during the same time frame, single family homes were closing at an average sales price of $1,573,951 and a sales price of $1,446,903.
This means that the average sales price for single family homes has went up by $54,258.

More Sales This Year and Homes Selling Faster

Last year YTD there was a total of 125 closings with an average days on market of 35. This year there have been a total of 158 closings with an average days on market of 26.

These are telling numbers. More homes went on the market in 2024 as many buyers jumped back into the market and homes sold at a whopping 9 days faster than last year. The DOM figure says a lot about what happened this year. If priced right, presented and marketed right, your home will do well.

Rates Are What They Are

Another thing is that buyers have come to accept the current rates and know that we will not be seeing rates in the 4% range or less at any time soon, if ever. So if they have housing needs, and many do, they are making their move. Except, a little less right now during the holidays but I expect that to change come the first of the year.

Home buyers right now have a great opportunity to jump on something if the home fits their needs as it is always more beneficial to buy when the market is not as hot as it should be come the beginning and into spring of 2025.

As always, happy selling and happy buying! And of course, HAPPY HOLIDAYS!