Just as people are turning up the heat as the weather get’s colder, they are too turning up the heat in the Scotts Valley real estate market just 2 weeks before Thanksgiving as pending sales shoot up 13% from 32% of all current homes for sale at the end of the third quarter to 45% as of this writing.
Million Dollar homes also get back in the market as 13 of the 36 single-family homes currently on the market are $1 million and above with 2 more just under the million dollar mark at $998,000. Out of the 13 homes at or above $1 million, only one is a pending sale.
The average list price of all pending sales (contingent & pending) is $767,200. This is a big drop in average sales price but it is not indicative that homes are now at that price level, its just that more homes in the lower price range came on the market and went pretty quickly. In fact, I noticed a lot more lower priced “starter” homes come on the market over the past couple of months than I have seen in a long time.
What does this all mean?
It means that the market is doing pretty much exactly what we have been saying it would do; Cool off a little in September through October and then heat up a little right before the holiday season as some good deals are and were on the market these past few weeks. Will it extend through the holiday season is the question of the day. As I mentioned, there are some good deals right now, but the fact is that inventory is also down a little and there are some homes that have been sitting a while that should be snatched up any moment now because they are now priced right.
The difference maker is the big push coming from Silicon Valley where home buyers are migrating to our area because the real estate market in Silicon Valley is just out of control with prices shooting up and multiple offers way over the asking price being the norm.
What is a “Million Dollar Shack?”
I am going to share with you, reluctantly, a link to a 23 minute video called “Million Dollar Shack” that is about a family trying to buy in Silicon Valley and the madness that exists over there right now. The current dire housing situation is what is driving buyers over here and I feel it will continue to do so which will spike up the demand on this side of the hill. The areas that are red hot over there are those with good schools because EVERYONE wants to buy where there are good schools. In Scotts Valley we have good schools. No, we have GREAT school. Combine that with our low crime rate and local amenities and you now see why our area is in such high demand, and will probably get even hotter.
But I have to warn you, this video will depress you if you are a home buyer wanting to buy in Silicon Valley and if you are a home buyer buying in this area, you will soon see more and more what real competition means if the trend continues of buyers coming over here from Silicon Valley. The link to the video is: http://milliondollarshack.com/
Is El Niño impacting the real estate market?
It’s not. Yet… However, at a meeting today with other real estate professionals as we discussed what is happening with our market a comment was made about the impact that El Niño could have when and if it does get here. If it comes and sticks around for a while, it could slow things down a little as the weather could make it difficult to look at and shop for homes. That is in my opinion a big “what if” and could be a potential game changer. Although if it is, it would definitely be a temporary game changer as El Niño comes and eventually goes. Only time and the actual occurrence will tell.
Stay tuned here, I’ll keep you posted on what’s happening with our real estate market as I monitor it and am in the middle of it daily as a REALTOR® here in town.
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.