Are you considering selling your home in Santa Cruz? If so, 2018 might just be the perfect time to do it. The current real estate market in Santa Cruz offers several favorable conditions for sellers. In this article, we will discuss the top 5 reasons why now is the opportune time to sell your home in Santa Cruz, California.
Reason #1: Low Inventory Creates High Demand
In Santa Cruz, the concept of supply and demand plays a significant role in determining the value of properties. Currently, there is a shortage of available homes for sale in the area. According to the REALTORS® Confidence Index Survey, the low inventory of homes has been a major issue affecting real estate transactions. This puts sellers in a position of advantage as the scarcity of available homes drives up their value. Historical data from the National Association of Realtors (NAR) shows that when housing supply falls below 6 months, housing prices appreciate by 5%. Therefore, by selling your home now, you can expect higher median prices.
Reason #2: A Strong Job Market Boosts Buyer Confidence
One of the factors that contribute to the appeal of homeownership is a strong job market. When people feel secure in their employment and have higher wages, they are more likely to invest in real estate. Fortunately, Santa Cruz has experienced a significant improvement in its job market. The decrease in unemployment rates and the increase in wages have boosted consumer confidence, making it an ideal time for sellers to take advantage of motivated buyers who are eager to purchase a home in this thriving market.
Reason #3: High Demand for Housing in Santa Cruz
Santa Cruz is experiencing a high demand for housing due to several factors. The combination of low-interest rates, rental appreciation, an improving job market, and overall confidence in the economy has created a strong desire among buyers to purchase homes. The September 2017 REALTORS® Confidence Index Survey reported that buyer conditions were rated as “stable” to “very strong” in all states. Additionally, the expected number of days it takes to sell a home has decreased significantly. In September 2017, properties stayed on the market for an average of just 34 days. This high demand and quick turnover make it an advantageous time for sellers to list their homes in Santa Cruz.
Reason #4: Rising Housing Prices Benefit Sellers
Homeowners in Santa Cruz are experiencing a spike in housing prices, which is great news for sellers. As mentioned earlier, the low inventory and high demand have resulted in increased property values. Over the past two years, real estate values have risen, bringing many homeowners back to positive equity. According to NAR, the median price of single-family homes sold in August 2017 was $255,550, representing a 5.6% increase compared to the previous year. If you’re a seller whose property value dropped during the recession, now is the time to benefit from these high housing prices.
Reason #5: Renting is Becoming Less Affordable
Another factor that works in favor of sellers in Santa Cruz is the rising cost of renting. According to the National Association of Realtors (NAR) research, it is now cheaper to buy a house than to rent one in many parts of the country, including the Northeast, South, and Midwest regions. This trend is driving more buyers towards homeownership, as they see the value in investing in a property that will build their equity over time. By capitalizing on the increasing demand from renters, sellers can attract buyers who are looking to transition from renting to owning a home in Santa Cruz.
In conclusion, if you’re considering selling your home in Santa Cruz, now is the perfect time to do so. The low inventory, strong job market, high demand for housing, rising prices, and the affordability of buying compared to renting all contribute to a favorable environment for sellers. By taking advantage of these conditions, you can maximize your selling potential and achieve a successful sale in the vibrant Santa Cruz real estate market.