JANUARY 2009
Welcome to the January issue . . .
If you'd prefer to read this newsletter in your web browser, just click here. You can reach me on my cell phone (831.246.4663) or via email at walter@831.com. As always, I look forward to hearing from you.
Santa Cruz County Home Sales Gain Momentum in 2nd Half of 2008
Sales of single-family, re-sale homes were up, year-over-year, in each of the last six months of 2008. For the year, home sales were off 2% compared to 2007.
For the year, the median price for homes was $585,000, a drop of 22%.
Home sales ended the year in December with a gain of 16.7% from November and a gain of 47.4% year-over-year.
The median price for homes rose 1.7% from November, but was down 38.2% year-over-year.
Inventory was down 18.8% from last November. This is the eighth month in a row inventory has declined year-over-year.
Our Days of Inventory indicator shed 71 days and is now at 213 days. In a balanced market, the supply of homes is usually around five to six months.
The sales price to list price ratio dropped 0.5 of a point to 96.3%.
Days on market fell four days to 75 days.
Condo sales were down 7.7% from November, but were up 41.2% year-over-year.
The median price for condos gained 16.1% from the month before, but was down 30.2% compared to last December.
Santa Clara County Home Sales Down 1.2% for the Year
Although sales of single-family, re-sale homes were down 1.2% for the year, there was a lot of momentum in the second half of the year.
Home sales increased, year-over-year, in the last six months of 2008. Momentum that should carry over into 2009.
Prices took a hit last year but should start bottoming out in the first half of this year.
For the month of December, sales of single-family, re-sale homes in Santa Clara County were up 38.8% compared to last year. Month-over-month, sales were up 6.8%. Sales continue to be concentrated in the lower-priced cities such as San Jose where year-over-year sales were up 80.6%, and Gilroy where sales were up 186.7%. It’s interesting to note that sales in Palo Alto, a very high priced area, were up 100%.
Prices actually showed some improvement in December. The median price was down a paltry 0.2% from November, and off 36.3% year-over-year. The average price actually rose for the first time in fifteen months, gaining 3.6% month-over-month, down 34% compared to last December.
Inventory crept upward last month, rising 1.9% from November, and up 11.5% compared to December 2007.
The sales price to list price ratio rose 0.1 of a point to 98.9%.
Condo sales rose for the second month in a row, gaining 9.5% from November, and, surprisingly, were up 1% year-over-year.
The median price for condos was flat month-over-month, but was off 38% compared to last December.
The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me (831.246.4663).
To read this newsletter on-line
To read this newsletter on-line, go to http://www.831.com or send me an email: walter@831.com
What is a "principal residence"?
What is the IRS’s definition of a principal residence?
Determining what constitute’s your prinicipal residence depends on many factors and not only on where you live most of the year. Only one residence can be your principal residence. The IRS looks at the following factors:
- Your place of employement
- Where your family members live
- The address you use on your tax returns, driver’s license, car registration, and voter registration
- Your mailing address for utility and other bills and correspondence
- Where you bank
- The location of any clubs, churches, or organizations you belong to
For information about tax issues related to selling or exchanging your principal residence, see http://www.irs.gov/irb/2007-04_IRB/ar09.htmland http://www.irs.gov/irb/2005-07_IRB/ar10.html
Market Trends at a Glance
| Dec 2008 | Nov 2008 | Change | |
| Santa Cruz County Single-Family | |||
| Median Price | $452,500 | $445,000 | +1.7% |
| Average Price | $531,839 | $600,125 | -11.4% |
| No. of Sales | 112 | 96 | +16.7% |
| Pending Properties | 126 | 139 | -9.4% |
| Active | 821 | 939 | -12.6% |
| Sale vs. List Price | 96.30% | 96.8% | -0.6% |
| Days on Market | 75 | 79 | -5.7% |
| Santa Clara County Single-Family | |||
| Median Price | $513,950 | $515,000 | -0.2% |
| Average Price | $659,085 | $636,232 | +3.6% |
| No. of Sales | 676 | 633 | +6.8% |
| Pending Properties | 677 | 771 | -12.2% |
| Active | 3824 | 4554 | -16.0% |
| Sale vs. List Price | 98.90% | 98.8% | 0.0% |
| Days on Market | 58 | 60 | -2.5% |
Refi Activity Increases to Highest Level since June 2003
The refinance share of mortgage activity increased to 85.3 percent of total applications for the week ending Jan. 9 compared with 79.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 1.1 percent for the week ending Jan. 9 from 0.9 percent of total applications from the previous week, according to the Mortgage Bankers Association (MBA).
Local Events
Green by Design, an exhibit inspiring visitors to harness and use renewable energy sources. Ongoing. Tech Museum, 201 S. Market St, San Jose, 408.294.TECH, www.thetech.org, Mon-Wed, 9am-5pm and Thu-Sun, 9am-8pm. http://www.thetech.org/exhibits/green_by_design/
Catch the Big Wave at Maverick’s, an exhibit dedicated to the big waves surfers ride off the coast of San Mateo County. Ongoing. San Mateo County History Museum, 2200 Broadway, Redwood City (The Peninsula), 650.299.0104, Tue-Sun, 10am-4pm. http://www.historysmc.org/Mavericks.html
The new California Academy of Sciences is home to an aquarium, planetarium, rainforest, natural history museum and a number of ongoing exhibits - Ongoing. $15-$25. California Academy of Sciences, Golden Gate Park, San Francisco, 415.379.8000, Mon-Sat, 9:30am-5pm and Sun, 11am-5pm. http://www.calacademy.org/
For More Information
Please contact me if you'd like more information about our community or real estate market:
Walter Stauss
Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062
Cell: 831.246.4663
Email: walter@831.com