Santa Cruz Medium Price for Homes is Up Again

The medium price for single-family, re-sale homes rose 4.1% from March and was up 22.8% yearover-year. Although the number of pending sales has been strong the past few months, it looks like a large quantity of those must have been short-sales, because, in a surprise, home sales were down 15.3% from March and off 22.5% compared to last April. Short-sales are notorious for falling out of escrow. Pending sales continued to grow in April, up 7.1% from March, and up 41.5% year-over-year.

Inventory, while increasing from March, was still lower than the year before. Of the homes currently for sale, 53 are bank-owned and 83 are listed as short-sales. Where is all this “shadow inventory”? You would think the banks would be taking advantage of the low inventory level in the County.

NEW STATE TAX CREDIT Just a reminder that the new state tax credit is not limitless, as was the Federal tax credit. The state tax credit is limited to $200,000,000 and is firstcome, first-served. It went into effect on May 1, 2010 for first-time home buyers and buyers of new, never-occupied homes. The state has allocated a total of $200,000,000 to be split evenly between both groups. The tax credit applies to taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.

Taxpayers may not request a New Home Credit reservation if they have entered into the contract before May 1, 2010. These tax credits are limited to the lesser of 5% of the purchase price or $10,000. The tax credit must be applied over three years in amounts beginning in the year the home was purchased. In any event, please do not construe this as legal or financial advice. Please contact your lawyer or financial advisor if you intend to use the credit. For full information, go to: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml Remember, the real estate market is a matter of neighborhoods and houses. No two are the same. For complete information on a particular neighborhood or property, call me.

Susan Grant, REALTOR, CDPE, SFR DRE

www.SantaCruzAvoidForeclosure.com

www.SusanGrant.biz

(831) 247-9140

David Lyng & Associates, 129 Water St, Santa Cruz, CA 95060

License #01331769