The numbers are out for May 2014 in the Scotts Valley real estate market and the numbers show the following interesting and important stats:
31 for 31 – There were 31 new listings in the month of May, one per day. The previous month, April, had 30 new listings in 30 days so the trend stayed even at 1 new listing per month in the past 61 days.
New Listings Stay Hot – 48.3% of new listings in May are already pending sales with an average list price for those homes being $897,698. The average list price of homes listed in May that have not yet sold is $1,109,344.
Days on Market for Closed Sales Less, Barely – The average days on market (DOM) for homes which closed in May was 66. However, there were 3 listings that were on the market for over 250 days so if you were to take away those 3 homes, the average DOM comes down to 15 which is 2 days less than in April which had an average of 17 DOM on homes that closed in that month, taking away away 1 particular sale that was on the market for 140+ days. Although you always use ALL numbers for stats, on occasion there are few that change the numbers and really are not indicative of what the market is really doing so I tend to use the likely average without inflated numbers.
On average, single-family homes sold for 99.20% of the asking price in May.
I think that the average days on market for a well priced home in the $850,000 and under range is 14-30 days, depending on price. The lower the price, the faster they usually sell.
Scotts Valley Consistent – Right now there are 82 homes for sale or pending in the Scotts Valley area which is consistent with what it has been for some time now as we have seen anywhere from 81-85 homes on the market in the area.
However, single-family homes at the moment are showing 40% being in Pending status which is up a little from what we have been seeing for a few months. We have seen figures in the 31-35% range of single-family homes being pending so it is not a really big change, but it is a change worth noting.
I do expect a few more homes coming on the market in June and July as kids are out of school and many potential home sellers were waiting for that to put their home on the market. I think we will see a similar pace of about 1, or 1.25 listings per day in the next 45-60 days.
Condo-Townhouse Market Softens a Bit – Another change worth noting is the fact that there are now more condo-townhouses on the market with most of them not having sold yet, a ratio of 5 actives and 1 pending in the condo-townhouse market. In fact, a couple condo-townhouses are on the market for well over 30 days which is something we were not seeing a month or so ago. But before you think that the sky is falling on the condo-townhouse market, think again. That market is still strong and still moving, there was just an influx of new listings in the past 30-45 days and I truly believe that they will not last much longer on the market as the demand still exceeds the supply.
The Verdict – The Scotts Valley real estate market remains strong and active. On occasion you will have a home on the market longer then the norm, but if it is priced well it will sell at close to asking price if not more as we have seen within 30 days.
The fact that Scotts Valley has one of the best school districts in the state with 75% of the schools being designated as “Distinguished Schools” will keep families wanting to move to Scotts Valley. Good schools brings more families who are willing to pay top dollar for a home in the area, its a fact that has been proven time and time again. The recent passing of Measure A, which will bring a new middle school to town, will in my opinion raise the eyebrows of new families looking to buy a home in Santa Cruz and Santa Clara County and will make a positive impact on property values.
Interest Rates Phenomenal – Yes, I do not know how else to say it but rates are amazingly low right now and you can get a 30 year fixed rate loan for as low as 4.125% and a 15 year fixed rate loan for approximately 3.125-3.25%. Rates did go up a little this week, but not much. Money is cheap. For every $100,000 that you borrow, on a 30 year fixed rate loan at 4.125%, your principle and interest payment is only $485 per month.