The Scotts Valley real estate market has continued to stay steady and active even as we have went into a pandemic that had people and businesses on lockdown since the SHELTER IN PLACE orders in March, with some easing of restrictions coming recently as many areas of California have showed a bending of the Coronavirus curve.
There was talk about the real estate market being affected and how this would put a major dent in the housing market. But that has not happened, nor is it expected to take place anytime soon.
So why no housing collapse? Because regardless of the situation at hand, families in Silicon Valley were still in need of housing as many hi-tech firms simply put a lot of their employees in their home offices and even continued some hiring which brought even more people to northern California. And, if I may add, look for that trend to continue going forward where even more employees will be telecommuting in the future. I think you will see many companies that downsize their physical offices, pay less in leases and retain employees while being more profitable. And with that being the case, as more and more companies encourage more telecommuting you will see more people wanting areas like Scotts Valley, SLV and Santa Cruz as they enjoy the things that this area offers without having to commute over the hill as much as before.
Think about it… What if you could work from home and live anywhere you want? Why not areas that are scenic and filled with recreational activities like hiking, biking and the water? With the commute over 17 being an issue for many, it could be a non-issue if more people are working from home.
Throw in the fact that we were one of the lowest affected areas in the state in regards to the Coronavirus spread because of the lower density areas and you will see more of an attraction for home buyers. Oh, and do I need to mention that Scotts Valley has the lowest crime rate in the county and some of the best schools in the state?
I expect this trend to continue but not just in this area, but other affordable areas throughout the country that offer the amenities and quality of life that this area does at a much more attractive price. And if you think I am crazy, re-read my previous paragraphs and tell me that it does not make sense. It absolutely does and just as I have been saying this in discussions with other professionals, some of my podcasts and videos, it is now being talked about in the tech industry. If I ran a hi-tech firm where I paid less dollars on leases and retained my employees while keeping them happy in areas that they love while being more profitable, what is there to think about? It makes total and complete sense.
The value that people place in real estate of being close to work is huge, followed by good schools and great surroundings that cater to their recreational activities. Throw away much of the commute and you now have buyers looking for schools and places with things to do. And this area has both.
More to come on this I am sure as we see buying activity and trends take place, but I am putting a lot of stock if you will on the above.
• Related article: How Mortgage Forbearance Can Still Bite You
So What is Happening?
About a week or so ago, I did an in-depth “LIVE” video with Brian Dean of Opes Advisors (see below) about the state of real estate in which I discussed a market “pause” as home buyers and sellers wait for the dust to settle on the situation before making a move. I also discussed how the market still appeared to be solid and that our area would recover faster than other areas because we are our own economy in a sense, with the massive amount of tech industry that exists just over the hill. And this is still pretty much the case.
In this video I also discuss the shortage of new homes coming up as builders have been feeling the pinch too. Watch the video if you can, it is very insightful and honestly, right on point.
Recently a great article from KQED interviewed 10 real estate experts that discussed the above, all of the above including what the rental market may do as we see some softening of rental rates and employees telecommuting. Much of the consensus in that article and abroad points to housing prices continuing to rise. Whatever bump in the road we may see in terms of appreciation should be temporary.
• Here is another article by Forbes that pretty much states and confirms my thoughts above. Click here to read.
Scotts Valley By The Numbers
Since the beginning of March, there have been a total of 46 listings come on the market. Out of those, 9 have sold AND closed and 7 are currently in “pending sale” status. That is 35% of homes already in contract which is typical of a steady real estate market, and maybe even bordering on a warmer market.
Closed sales averaged $1,024,250 which was just above the average list price of those homes of $1,018,375. That is a solid figure. Only one condo was listed and closed in that time frame at a price of $525,000. That condo sold for $26,000 above the asking price of $499,000.
Currently there are a total of 59 total homes on the market. 39 are single family homes with 27 still active and 12 already in contract. That equates to a 30.7% of single family homes being in contract.The average list price for active and pending homes is $1,405,815.
Right now there are a total of 20 condos and townhouses with the majority being the new townhouses in the Lundy and Terrace Developments. I say this because they are inflating the amount of properties on the market, yet they still hold a very important amount of information that could be used for other townhouses that may come on the market in different developments.
The average list price for townhouses and condos currently on the market both active and pending is $797,398. The average list price for condos is $537,000 and townhouses is $872,330.
The Importance of a Powerful Marketing Plan
Today, more than ever, your home needs to shine. Buyers do not want to be driving around anymore and want to see homes on the Internet before they go out and see it. The importance of your home looking at it’s best in regards to photos, videos, 3D virtual tours and floorplans cannot be overstated. It is a totally different world today then it was just 2 months ago. Believe it. Watch the following video that explains what REALLY sells homes today. It is right on point and informative.
As always, Happy Selling and Happy Buying!
And more than anything, stay safe out there!
REALTOR® since 1986
DRE # 00921165
Keller Williams Realty
831-252-3959 Direct Line
ABOUT ROB: Robert Aldana is a 34+ year licensed real estate veteran with Keller Williams Realty, and also a long-term resident and homeowner in Scotts Valley.
In 2015, 2016, 2017, 2018 and 2019 Robert was the agent chosen by more Scotts Valley area home sellers and buyers than any agent or team, and Robert was awarded the Santa Cruz Sentinel Readers Choice Award as the Best REALTOR® in Scotts Valley for four straight years 2016, 2017, 2018 and again in 2019. Robert is also the ALL-TIME leading real estate agent in Scotts Valley sales.