Santa Cruz County home-buyers should jump at prices and mortgage rates. Now is the time to buy with low mortgage rates and still reasonable home prices.
Currently, mortgage rates are still under 4% but are up a bit from their historical lows last year. While no one can know for sure if rates may drop again you can expect mortgage rates to rise as the economy gets on firmer ground.
The median price of a single family in Santa Cruz County shot up in March to $585,000, from $449,000 in February, and $480,000 a year ago. Home prices are clearly on the rise but prices are still well below their highs of 2007, when the median home price hit the $790,000 price range. This should be good omen for a sharp homebuyer.
A factor driving prices up, is the low inventory of homes for sale. Last week, there were just 529 homes for sale down from 782 last year. The unsold inventory index generated by dividing current listings by sales, was 3.2 months in March, far below the normal range of six to eight months.The current sellers market with a lack of inventory, is a double-edged sword with sellers hearing the news and thinking they will just wait a little longer before selling in order to give their homes a better chance to increase in price. Another trend pushing up values is the decline in bank-owned homes for sale and the number of short sales.
The prudent prospective homebuyer will look at the mortgage rates and the current price of homes and will realize that now is still a good time to buy. It’s not uncommon for homes that are listed for sale to receive multiple offers and go for a higher price than asking. An agent like Hyko Roppel may suggest listing a home purposely below market value in order to attract and generate a lot of interest and several offers. This technique may net his client, the sellers, a higher price for their homes.
If you have been considering buying or selling property in Santa Cruz, California? Call Hyko Roppel at (831) 477-5815 or CLICK HERE to schedule a free consultation.