What Santa Cruz Home Sellers Should Know About the Current Real Estate Market

What Santa Cruz Home Sellers Should Know About the Current Real Estate Market

There are many stages in life where the mindset of temporary housing or a rental phase makes sense. However, Santa Cruz home sellers should know that while it would have previously been the norm, these people are now more focused on finding permanent housing situations and increasing the number of buyers competing for homes in the real estate market Santa Cruz. Part of this drive may be due to many company’s business models rolling over into home-based work. Another phenomenon that has come to light, more wealthy investors are updating their investment plans to move with the market, making their second home purchases for retirement earlier than previously planned, increasing the shortage of available properties on the market. 

Riding the Wave

Like a wave still rolling from the 2008 national trend of slowing new housing production, the backlog of completed units has yet to be met, let alone the surge in demand that has emerged since the pandemic. Low-interest rates are also pushing buyers into the market that may not have otherwise been able to afford as much housing. There is also a migration of buyers from high-tax states brought on by changes in federal tax guidelines, which means they can no longer write off their property taxes. 

The National Association of Realtors reported in October of 2020 that there were fewer homes for sale now than ever. If no other homes were listed on the market starting now, there is just over a two-month supply of inventory available. There has also been a stall in the number of homes listed by sellers that would typically be making an upward move in housing, such as moving up from a starter home. Many homeowners choose to stay in place to see how they are involved and settle out before risking what they have in place. These factors have combined to create an epic seller’s market, with the surge in demand and shortage of housing units available, causing prices to soar. Read on to discover what Santa Cruz home sellers should know about the real estate market in Santa Cruz. 

The Trouble With Bidding Wars

While a seller’s market may sound like a perfect scenario, Santa Cruz home sellers should know that bidding wars affect the real estate market in Santa Cruz. The problem comes when buyers bid above the amount the home will appraise while remaining below the typical 80 percent of the loan to value the mortgage. There is a potential to lose your buyers, should they find themselves in a bidding war. They may not have the finances to afford the higher monthly payments and a higher principle, let alone the additional cost of mortgage insurance. And may not have enough cash on hand to cover any shortage between the appraisal and the final purchase price.

What Goes Up Must Come Down

All good things come to an end. Housing prices had already begun to trend upward before the pandemic and continue to rise. Under the current conditions, most first-time homebuyers facing the rapid jump in listing prices cannot afford the average home. Santa Cruz home sellers should be acutely aware that the current rising price trend on the real estate market in Santa Cruz cannot continue indefinitely, and the real estate market may crash. Indicators are that foreclosures, which are on hold now, will rise among lower-income households. Around 2.75 million mortgages are in forbearance under the CARES act’s protection at this time, with approximately 10 percent of all FHA-backed mortgages more than three months behind on payments. 

Avoiding the Risks of Selling

Avoiding selling for too long may mean that sellers miss out on this rare opportunity to strike while the market is at or near its peak. When it comes to traditional listings, a significant number of people simply do not want to take the risks of meeting with strangers to negotiate or do business. Many would prefer not to have showings during the pandemic because of potentially ill buyers walking through their homes. With stress already at an all-time high for many, the mere thought of the additional pressures of selling a home, especially when school and work are home-based, is too much to consider. Santa Cruz home sellers should know that there is another way to sell their home on the real estate market in Santa Cruz, by selling to a direct buyer like Parker Larsen Properties - Santa Cruz Homes For Sale Expert.

Ready to learn more about what Santa Cruz home sellers should know about the real estate market in Santa Cruz? At Parker Larsen Properties - Santa Cruz Homes For Sale Expert, we are here to listen and help you handle all of your problems. With fair prices, straightforward easy to understand contracts, and quick closings. Working with Parker Larsen Properties - Santa Cruz Homes For Sale Expert means there’s no need to delay selling any longer! Parker Larsen Properties - Santa Cruz Homes For Sale Expert will walk you step by step through the process and help you determine what is best for you! Send us a message or call Parker Larsen Properties - Santa Cruz Homes For Sale Expert at (831) 419-9087 today!

Parker Larsen DRE# 02155012

Parker Larsen (DRE# 02155012) has lived and worked locally in Santa Cruz for over 25 years since his family moved \"over the hill\" from Woodside to Aptos in 1998. A four-year Aptos High School varsity tennis player, Parker lead his team to win the league championships all four years while winning the individual singles title twice. He graduated with academic honors from Aptos High School - \"It\'s A Great Day To Be A Mariner!\" - and then UC Santa Cruz where he earned his Legal Studies BA and continued his tennis career. His efforts won the UCSC Banana Slugs a team National Championship and coined him his coveted \"All-American Athlete\" status. Aspiring for financial freedom and building from lessons learned on court and in the classroom - he applied his determination and focus to real estate, technology, and entrepreneurialism. Now, with over 15 years of real estate industry experience across a variety of proficiencies including sales, marketing, property management, deal analyzation, and acquisitions – he manages his own investment portfolio while passionately helping others achieve their real estate goals and dreams.

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