Scotts Valley, CA

Scotts Valley Real Estate Prices.....Results for 2012 so far

As the chart below shows, Scotts Valley home prices are hovering at a central trend of stability around $650,000. The difference between the sales price, compared to the list price, has been steadily shrinking. This year, some buyers have been willing to pay over asking price.

23 Single Family Homes have sold in Scotts Valley so far this year, at an average price of $640,819. The average home sales price of $633,593 in January was based on 9 closed escrows. In February, another 9 homes closed escrow, at an average price of $659,500.

Source: MLSListings.com – Single Family Residence closed escrows

The tone of press stories is improving:

Housing Crisis to End in 2012 as Banks Loosen Credit

Pending Home Sales Rise

Jobs Creation Heralds Stronger Recovery

Housing Affordability hits Record High

Case Shiller, which studies the nation’s housing market, noted prices declined in the 4^th quarter price by 3.8%. However, Karl Case, one of the index's creators, voiced optimism about real estate's direction, based on census data indicating increased household formation which leads to increased demand for housing.

Click here to read more about the Scotts Valley Community.

Results for the 4^th Quarter compared to the 3^rd Quarter 2011

36 homes sold across the city and rural areas of Scotts Valley during the final 3 months of 2011. The average home sales price was $709,924. During the 3rd quarter, 77 homes had sold at an average sales price of $727,842. During the final half of the year, the discount from the original list price remained stable at about 4%.

Click here to get a free, no obligation estimate of your home’s current market value.

Today represents the opportunity of a lifetime for real estate investment. One only needs to study the wealthiest people in the world to know how to capitalize on timing. Warren Buffet recently pointed out that when everyone else is selling is the time to buy.

In Santa Cruz County home prices and interest rates are at historic lows. Never has the affordability index been greater in our adult lifetime. Affordability translates to the ability to purchase a home and this is represented by the percentage of a median family's income consumed by the median mortgage. Nationally in 1981 a mortgage represented 36% of a family's income, today the national percentage is 15% of the family's income. This affordability combined with low prices and low interest rates is known as a "Buyer's Market" and a buyer's market is defined as the time to buy. It is not the time to kick the tires or to wait hoping the market will go lower. The waiting is over.

Now is the time to capitalize on the low prices and low interest rates which make Santa Cruz homes more affordable than ever. In August 2010 inventory of single family homes for sale in Santa Cruz County was 1102, in August of 2011 it was 1014 which represents an 8% decline. In August of 2010 we sold 150 homes countywide and in August 2011 sales of single family residences increased to 164 which represented a 9% increase in sales. So our inventory has decreased and our sales have increased. The average price of a Santa Cruz County home decreased from $578,159. to $557,810. and the median price decreased from $522,500. To $490,000 when comparing to August 2011 to August 2010.

For years I have advised my home buying clients to wait to buy unless they planned to hold their home for 10+ years. I also previously advised my home selling clients to sell quickly if they had to sell since the market showed all indications of decreasing in value for years. Agents used to say that we need a crystal ball to know what the market will do in the future but the years from 2005 until now have had such obvious economic indicators that only a person living under a rock would not have seen the signs leading to the continual decline we have experienced as a result of stalled sales and ballooned inventory through these years of lending issues, short sales, REOs, phantom inventory, high unemployment and numerous other blows to the real estate market and to the economy.

While the national economy has a ways to go, the Silicon Valley economy is on the upswing and historically our market follows the Silicon Valley market due to the nature of our bedroom community. In other good news we now have 6.18 months of inventory of single family homes currently on the market and 6 months represents a balanced market.

I am reminded of my dear Mother, Margaret McCallister, when I hear the saying "do unto others as you would have them do unto you." She lived by this principle and ingrained it into her children on a daily basis.

Often people will ask me about my success in real estate and wish to know "my secret formula." When I reflect on this question, my belief is that what I achieve in my career and in life is a direct result of treating my clients, other agents and people in general how I would like to be treated. It is a simple philosphy which encompasses all aspects of who I am and of what I do.

Many people believe that real estate success must come from a complex master plan. I believe it really comes down to how I treat people. The end result of doing unto others as I would have them do unto me is a large network of friends/clients, highly valued referrals from clients as well as referrals from agents and ultimately smooth transactions. No transaction is stress free but all transactions have the opportunity to end with all parties knowing that a win/win was achieved for all involved.

When Gary Keller of Keller Williams says "Win-win or no deal" as part of our company mission statement it reminds me of my Mothers values and makes me feel good about the amazing company that I work for. I believe that such values is why Keller Williams is the #2 real estate company in the nation and is on pace to become #1.

It is rewarding to see that when I treat clients and other agents well that they treat me well in return. The best part is that the coop agents and your clients become some of your closest friends. Work becomes fun and life is good for all involved. :-D

WOODS COVE - SANTA CRUZ GATED HOME COMMUNITY- MARKET REPORT 2011

Woods Cove is a Santa Cruz Gated Home Community located off of Graham Hill Rd, half way between Scotts Valley and Santa Cruz. Woods Cove is a fairly new development (for Santa Cruz), most homes are less than 10 years old.

Let's take a look at the homes sales in Woods Cove - Santa Cruz Gated Home Community in 2011:

Two homes sold in Woods Cove this year, for an average sale price of $1,411,000. Both were large, executive style homes with an average square footage of almost 5000 square feet.

There is one home for sale in Woods Cove, it is listed for $1,795,000.

Two homes in Woods Cove, gated community in Santa Cruz are in escrow. One of these gated homes is a short sale. Yes, even in upscale gated home communities there are short sales and foreclosures. The short sale home in Woods Cove is listed at $1,250,000 an is over 5000 square feet with 5 bedrooms and 5 1/2 bathrooms.

Woods Cove is a lovely gated home community in Santa Cruz with large, luxury homes on spacious lots. Contact me for more information about buying in Woods Cove or what your home is worth in today's market.

Purchasing a home is a large investment and as such it is important to be prepared by following the right steps.

First ask for Realtor referrals from people who’s opinion you trust. Interview the agents who are referred to you and then choose the agent who you feel will best represent you based on their experience, their negotiation skills and your comfort level with their personality. Many people choose a Realtor “because they are nice.” Feeling at ease with your agent is important since you will be spending a lot of time together but equally important are their reputation, their experience and their ability to best represent you in terms of what is important to you in your real estate transaction. Once you find the ideal agent for you, commit to working with them as they will commit to working hard for you.

Always avoid working with the listing agent of a property that you wish to buy. The listing agent is already employed by the seller to represent the seller’s best interests in the transaction. As a buyer you want the lowest price and best terms and conversely the seller wants the highest price and best terms. So having one agent represent both sides is a conflict of interest. A misconception is that you will save money if you go through a listing agent. The truth is that having a strong buyer’s agent represent you will protect your best interests and will save you more in the transaction than going through a listing agent which will yield you no representation.

The next step is to ask your agent for lender referrals (unless you are paying cash for your home). Many people have a friend or relative who is a lender and don’t bother asking their agent for advice on this topic. Full time agents work with the best mortgage loan officers on a daily basis and can advise you on which lenders have a reputation for performing on their loans and for providing unsurpassed service. The mortgage loan officer is a critical person in terms of you closing escrow on the home that you want and like Realtors they differ greatly in terms of knowledge, service, communication and the ability to perform.

Last of the most important home buyer tips is to make the time to sit with your agent for an in depth Home Buyer Consultation. Many home buyers feel they are too busy to meet with the agent and as a result waste weeks or months that could have been saved by all decision makers taking the time to communicate all of your wants and needs up front. The more your agent understands about what you want and need the sooner they will find the ideal home for you and the better chance they will have of finding it before someone else does. Keep in mind that the agent’s job is only 5% about finding the home (which anyone can do online) and most importantly about representing your interest in one of the most important investments that you will make.