Capitola Real Estate

Capitola is the coastal center of Santa Cruz County. On a sunny day you can travel from Capitola Village to the redwood forest of Nicene Marks in 5 minute- or better yet a 15 minute bike ride. Wander inland through historic Soquel, past restaurants and businesses, up Old San Jose Road for a leisurely drive through the Santa Cruz Mountains.

Two things that persuade my clientele to purchase Santa Cruz real estate are the temperate, almost perfect weather and Santa Cruz County's 14 State Parks. This weekend I made the most of both by taking a winter hike through Wilder Ranch, located just up the coast along HWY 1.

Spring is definitely springing along the coastal terraces of Wilder Ranch. As I walked through the park I saw four young deer foraging in the grass. The panoramic views of farmland and the Pacific Ocean reminded me of why, although prices have fallen throughout the State, Santa Cruz and Bay Area real estate seem to be stabilizing.

Perhaps this is a decent analogy for the Capitola Real Estate Market? Even though prices dipped last month, Capitola residential home prices appear to have settled at a plateau.

Inventory has been steadily growing with no marketable change in sales, and conditions indicate a strong buyer’s market. If you are sitting on the fence trying to decide whether or not to buy a home in Capitola or Santa Cruz County, it might be time to shake off the winter doldrums and embrace spring.

I Sell Santa Cruz because I love this area and its communities. From beach front properties to mountain homes, bungalows to luxury home, short sales to bank owned properties; call me today to discuss your real estate options.

John Flaniken: Contact me at 831-334-0890 or john@sellsantacruz.com for more information about Santa Cruz County Homes for Sale and Capitola Real Estate.

Graph is between Aug 2011 and Jan 2012
Property Class includes- 'Single Family Residential', 'Townhouse/Condo’
Area is '44 Capitola'
Results calculated from approximately 130 Listings

Capitola Real Estate Market Update - For the last 6 months, the Capitola Real Estate market held under 7 months of unsold inventory indicating a strong seller’s market. In January 2012 the inventory increased to 57 single family homes with only 2 sold units. This sky-rocketed the unsold inventory to 28.5 months from December’s 6.2 months, indicating a transition to a strong buyer’s market.

So what does months of unsold inventory mean and why is it important to follow? To understand Capitola’s unsold inventory, we take the total number of listed homes available and divide by the number of homes sold per month in the area. This is the best determinant of a real estate market’s health. A stable market maintains a 7-9 month supply of available homes. Under 7 months indicates a seller’s market while over 9 months indicates a buyer’s market.

We won’t know until next month if this is the sign of an unhealthy market or a numerical anomaly caused by the end of the calendar year. A 28.5 month’s supply of real estate inventory for Capitola could drop prices further and open up more opportunity for home buyers in Capitola, CA.

Month Months of Unsold Inventory
Aug 2011 4.5
Sep 2011 6.0
Oct 2011 4.1
Nov 2011 6.5
Dec 2011 6.2
Jan 2012 28.5

Santa Cruz Short Sales

Santa Cruz Short Sales—What is next now that HAFA is out the door?

The HAFA Short Sale program sunsets at the end of 2012 for Santa Cruz County and the rest of the United States and I will not be sorry to see it go. Introduced on April 5th, 2010, the Home Affordable Foreclosure Alternative (HAFA Program) was a process intended to reduce the complications and long waiting periods that were plaguing the old short sale program. Instead of simplifying a complex process, HAFA created several additional layers of bureaucracy. More short sale bureaucracy meant more challenges for the REALTORS® and distressed homeowners which ultimately translated into more foreclosures in Santa Cruz Count and probably your hometown as well.

HAFA, like many other government programs, was all red tape and bank compliance while still giving the lending bank the ability to interpret the guidelines independently. Each bank got to devise its own requirements and change those requirements at will. This made for a bureaucratic game of Whack-a-Mole.

My concern with the complexity of HAFA was not about the extra work it dumped and continues to dump on REALTORS, my real concern was how many unnecessary foreclosed homes HAFA might have caused. According to the MLSListings, 400 underwater homeowners in Santa Cruz County sold their homes short in 2011 and an additional 318 short sale listings expired, were canceled or withdrawn. If HAFA was responsible for even 20% (and 20% is conservative) of those failed short sales in Santa Cruz County, 64 local families were unnecessarily forced into foreclosure by HAFA in 2011. If you think I'm wrong, ask yourself why they are canning the program.

As long as there are underwater homes the Short Sale Conversation will continue. With HAFA out the door, let's hope the next available options to distressed homeowners offer a better solution to the dilemma that is Santa Cruz Short Sales.

Capitola Real Estate is in high demand. As the real estate market continues to stabilize in 2012, people are searching for coastal homes for sale. With the prime Monterey Bay location, Mediterranean-styled esplanade of shops and restaurants along Capitola Beach, and the bevy of annual community events Capitola is a special place to call home.

While Capitola Village remains the heart of Capitola with summer movies on the beach, free concerts at the Esplanade, and the famous Begonia Parade; there are a variety of events put on by The Capitola Chamber and the City of Capitola that encompass the entire city including the Capitola Mall, where a new Target will be opening in 2012.

Here are the dates for some of the best 2012 Capitola Events to put on your calendar:

• Jan 6^th 6-9pm
  First Friday Art Tour in Capitola Village
  Art, appetizers, wine & music await you at various shops in Capitola Village.
• Jan 19^th 5-7pm
  Capitola-Soquel Chamber holds an after-hours mixer, hosted by the American Red Cross Santa Cruz County Chapter, at 2960 Soquel Avenue, Santa Cruz
• Feb 23^rd 3:30-7pm
  Aptos & Capitola-Soquel Chambers of Commerce Business Showcase at the Capitola Mall - 1855 41st Avenue
• Apr 7^th 11:00am
  Capitola Village Easter Egg Hunt
  A Treasure hunt on the beach and lagoon behind the Capitola Venetian Hotel
• May 5^th 11:00am registration
  For all ages and skill levels. Fly a kite or just watch the sky fill with colors.
  Capitola Village Main Beach

• June 9^th & 10^th Sat 9am-5pm & Sun 9am-2pm
  7th Annual Capitola Rod & Custom Classic Car Show
  On the Esplanade in Capitola Village
  300+ Hot Rods, Muscle Cars, Coupes, Roadsters, Customs and Classics - vintage to 1972; Vendor Booths, Music, Silent Auction, Raffle, Trophies and more.
  
• June 15^th through August 24^th, Each Wednesday 6-8pm
  Night Twilight Concerts
  The Art & Cultural Commission invite you to bring a picnic, sit in the park or on the beach, dance to live music on Capitola's bandstand in Esplanade Park.
  
• July 22^nd 8:30am
  Wharf-To-Wharf Race
  A scenic six-mile race with forty live bands and throngs of festive spectators.
• June 24^th 9am-4pm
  Bikes on the Bay
  Capitola Mall Parking Lot
  Admission is free to this vintage motorcycles, scooters and vendors show.
• August 1^st-September 30^th, Each Friday 6:30pm
  Movies at the Beach in Capitola Village
  Enjoy a movie and free popcorn on a summer night. Come early, have dinner in the village, bring the family, bring friends, flashlights, beach chairs, and blankets.
• Aug 31^st - Sept 3^rd
  Capitola Begonia Festival - 60th Anniversary!
  Theme: My Favorite Year - a Retrospective
• Sept 8^th & 9^th 10am- 6am
  30th Annual Capitola Art & Wine Festival
  Enjoy 150+ artists, 21 Santa Cruz Mountain Wineries, gourmet food, children's art area, and entertainment in the beautiful, beach-side setting of Capitola Village-by-the-Sea.
• Oct 28^th 1:30pm
  Capitola Village Children's Halloween Parade
  Enjoy a parade, refreshments, entertainment, pumpkin painting, trick-or-treat bags, balloons, and trick-or-treating at Village merchants. This is a free and family-friendly event.
• Nov 24^th 12pm
  Surfing Santa
  Santa arrives at the Main Beach in Capitola Village to start the California Christmas season.
• December 10^th
  Capitola Village Christmas Caroling

If, after attending any of these events, you want to see learn more about living in Capitola, contact John Flaniken for a private viewing of available Capitola Listings or to learn more about Capitola Real Estate visit http://sellsantacruz.com/capitola-real-estate.

It's a great time to be a REALTOR® in Santa Cruz County.

We have all heard the conventional wisdom about the winter months and the inevitable end-of-the-year real estate slump: November and December are a slow time for real estate sales in Santa Cruz County. Might as well kick back a little or take some time off.

It's a myth.

I took on four new listings this month; a Bank Owned Santa Cruz townhouse, a Capitola home, a conventional single family residence nestled in the San Lorenzo Valley and a Bank Owned Watsonville townhome. Two of the four homes were put into escrow in the 1st 10 days! In addition to this influx of inventory, I am busy looking for Santa Cruz real estate deals for several investor buyers and a few 1st time homebuyers. I couldn't kick back or take time off right now if I tried. I'm as busy right now as I have been for the last 6 months.

Here's my take on the alleged Seasonal Slump:

1. 1. Even if there are fewer Santa Cruz or Capitola buyers, the available inventory is less, keeping relative supply and demand status quo.
2. 2. At the end of the tax year, there are always investors seeking tax shelters for cash.
3. 3. It is human nature to clear away the old for the coming New Year. The calendar coming to a close can motivate the right seller into accepting a lower offer they might have passed on in October.
4. 4. With few REALTORS working at full capacity, a focused and driven REALTOR has less competition when courting clients. Even if real estate is only 3/4 as busy as in midsummer, with so few active REALTORS, the rest of us are slammed.

But you don't have to take my word for it; I'm quite happy to wrap up a few more deals before 2012. I understand the need to take time off, reorganize your business and revitalize. Just don't fool yourself into thinking that the real estate business is taking time off too.

Santa Cruz Real Estate Seasonal Slump; Fact or Fiction?