Market Report March 2023
The stats for March are in for Santa Cruz County. Once again, the biggest news is that inventory remains very low. There just are not enough homes on the market to meet the continued demand from buyers. This has helped to keep prices stable. The median price was $1.19M, just slightly lower than in February. Note that a year ago, March of 2022 had a record breaking, all-time high median price of $1.6M. This was the peak of the “frenzy” that we saw at the end of 2021 and the beginning of 2022. The median price quickly went down in subsequent months, which has more or less stayed around $1.2M.
Buyers waiting for a big dip in the market will continue to wait as we are seeing multiple offers and overbids on new listings in the most desirable areas. At the same time, homes in poor condition and/or in less desirable locations are taking longer to sell unless they are listed at a low price to attract buyers. If properties are overpriced, especially in less desirable areas, they are taking longer to sell.
Interest rates continue to bounce around in the 6-7% range for conventional 30-year mortgages. Some buyers are utilizing adjustable-rate mortgages to take advantage of lower rates in the 4-5% range.