The Santa Cruz real estate market, after stumbling slightly in April, made a strong comeback in the month of May.
The California Association of Realtors (CAR) reported that the state as a whole posted its first monthly year-over-year gain in 18 months during this same period.
CAR President Beth Peerce reported that, with 70 MLS areas reporting, the increased activity was spread throughout the state.
Santa Cruz Real Estate Market shows strength
This graph, courtesy of Terradatum, shows how erratic the housing market has been for the past two years, failing to show any real direction until this year:
The Santa Cruz Real Estate Market from May 2009 to May 2011 is finally showing some positive direction.
April 2011 saw a slight dip in sales, both year-over-year and from the previous month.
This caused many to worry if the recovery of the Santa Cruz County resale housing market was about to stall in the middle of the Spring.
Indeed, with so much uncertainty in state, national, and world financial markets it was a distinct possibility. Well, if May is any indication, it appears that the month prior was more of an anomaly than an indicator.
Pending sales are usually an leading indicator of housing sales, since its tracks activity by Buyers entering the housing market with enough seriousness that they make offers acceptable to those selling their homes.
Santa Cruz Real Estate Market Inventory
The next graph, showing housing inventory and its absorbtion by the demand for housing, provides similar good news:
This graphic showing the Santa Cruz Real Estate Market Monthly Supply of Inventory indicates that homes are being absorbed by the Home Buying public
This graph has a lot of information - almost all of it good news for homeowners!
The jagged line indicates the average number of days a home is on the market before it sells.
Traditionally, this number for Santa Cruz County is around 60 days, and we see the current market moving rapidly toward that. Some of this may be due to seasonal market activity, but clearly the average market time for a home for sale in Santa Cruz County has been falling steadily since the beginning of the year.
The curved represents market trends in the amount of inventory on the market by month. Again, this has been steadily trending downward sine the Fall of 2010.
The bars show that November 2010 had over 9 months of inventory based on market activity at that time. May had slightly more than four – a dramatic improvement. It is generally accepted that three months resale housing inventory or below is a “Sellers Market” – something we have not seen for quite a while!
Simply put, we have a long way to go to match the heady days of the mid-2000′s. But this months figures for the Santa Cruz Real Estate Market shows it is off to a good start!
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