With just over a week to go before the start on the Holiday Season, the Scotts Valley real estate market continues to roll with less and less inventory and more and more of that inventory being reported in pending status.
At this time there are 35 single-family homes (SF) in the 95066 zip code with 54% of those already being in pending status. That means that at this time, there are only 16 homes for sale that are available. The average list price for ALL single-family homes is $946,025, with an average days on market being 53 days.
This fixer-upper in Scotts Valley priced at $599,950 flew off the shelf with multiple offers well over asking price
One of the pending sales is a listing that I have at 324 Lucinda Street
which is a fixer-upper for $599,950. It does need a lot of work, but the price point and the potential for a good return on the investment had probably over 50 interested buyers and between many other agents showing it the first day it went on the market and me showing it sometimes to three or four different sets of buyers at a time, it flew off the shelf with multiple offers, and is already pending at well over asking price. If you get a chance, check out the video that shows potential before and after pics at RobertAldana.com/324LucindaStreet
The higher price point remains softer than the average price range as the unsold homes are averaging a $1,102,531 list price with an average of 68 days on market, and counting.
Meanwhile, the average list price for those properties that are in pending status is $814,230 with an average days on market being 41 days.
This confirms, and it does not take a rocket scientist to figure this out, that homes in the $900,000 and under price point are doing very well, while homes over the $1,100,000 are taking longer to sell. As a whole…
This home at 240 Bobs Lane sold for over $50,000 above asking price and recently closed for $1,120,000 in Scotts Valley
But not ALL higher priced homes are sluggish as I recently closed escrow on 240 Bobs Lane here in Scotts Valley that I listed at $1,069,000 and sold with multiple offers for $1,120,000 within days of it having gone on the market. The home was priced right and it showed amazing, not to mention it was the only one in that price point at the time.
It all depends on the home, the neighborhood, and how the home is priced and marketed, as well as how it compares to other homes in that price range. Meaning, one home priced at $1,100,000 will fly off the shelf if it is in a very desirable part of town versus another home that is priced the same, but has a lot more homes in that particular neighborhood and development. Location, amenities, and proper pricing of the home is what makes a difference, as well as a solid marketing plan.
For the first time in a long time, I am seeing more ACTIVE condo-townhouses in Scotts Valley then PENDING sales. But it is really not that big of a deal as there are 7 total condos and townhouses on the market with 3 of those being in pending status, and 4 being still available.
What is not surprising is the fact that all active condo-townhouses have an average list price of $633,125 with an average of 39 days on the market. Meaning, the higher-end condo-townhouses are in fact staying on the market longer as some single-family homes saw prices in the mid to higher $700k range just recently and with the HOA dues, buyers can buy a townhouse for $725,000 and have the same payment as a home of about $775-800k. Right now there is one townhouse on the market for about $735,000 which has been on the market for 66 days, with an original list price of $750,000.
Pending sales are averaging a list price of $493,000 with an average days on market of 17 days. Again, no surprise, but lower priced condo-townhouses continue to be in high demand.
I see a lot of the same continuing through the holidays. It may slow up a little, but I have to believe that the low inventory along with the fear of interest rates spiking upwards, which they already have done, could bring out more of the home buyers that have been taking a break. I really think that this market will continue to stay strong and yet there are some decent deals to be had if you are ready to act upon them, especially in the $1 million + price point.
What Should You Do?
Here is what you should know:
The best time to buy a home is during the holiday season as those that have their homes on the market during the holidays have a true motivation to sell, or else they would wait until January or February of next year. However, there is also a lot less inventory so in a way it is a “catch 22” as there are less home to choose from. Yet many buyers are taking some time off from buying and focusing on other things like the holidays, while other buyers who have been waiting for the season to come (Holidays) are starting to get back into the market.
Still, I give a slight, very slight edge to home buyers during this time of the year. Yet as I stated above (240 Bobs Lane), some homes will fly off the shelf regardless because of the location and condition and the $900k price point and under will do well regardless of the time of the year.
What I am saying may or may not make sense, but it is the reality of where things are in this crazy Scotts Valley real estate market. If I am a home buyer, I am looking right now to see if there are any good deals because if I wait until spring, I will be once again competing with all the other buyers who are getting back into the market regardless of an increased inventory.
Happy Selling and Happy Buying!
REALTOR® since 1986
BRE # 00921165
American Dream Realty in SV
5522 Scotts Valley Drive
Scotts Valley, CA. 95066
831-252-3959 Direct Line
Robert Aldana is a 30+ 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.
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, RealtyTimes.com, Forbes.com, among many other real estate and finance news sites and publications.