Santa Cruz, CA Real Estate Market Trends & Forecast 2023

Santa Cruz, CA Real Estate Market Trends & Forecast 2023

Thinking of making a move to California? The Golden State has a lot to offer, from its fantastic year-round climate and incredible parks and beaches to its excellent education system. Santa Cruz County, in particular, is a great place to invest in real estate and one of the most desirable places to live in California. Located just an hour from San Francisco, this beachfront community offers stunning views, a laid-back lifestyle, and a wide variety of housing options.

In recent years, the Santa Cruz real estate market has seen strong growth due in part to the increasing number of tech workers who are looking for a more affordable alternative to the Bay Area. This robust job market supports high property values. Santa Cruz real estate is highly sought-after, and prices have steadily risen in recent years. If you're considering buying a home in Santa Cruz, now is a great time to do it. Prices are still relatively affordable, and you can expect to see a healthy return on your investment in the future.

It's worth noting that the housing market is showing signs of a shift, with sales beginning to slow and prices starting to level off as interest rates rise. So if you're considering buying a home in California, now might be the time to act. Whether you're looking for a primary residence or an investment property, the Santa Cruz market has something to offer.

An informed lens

For those looking to buy or sell a home, the market shift predicted for next year is sure to bring some changes. However, with a little knowledge of what to expect, buyers and sellers can adapt to the new market conditions.

Sellers should be aware that well-priced homes are still selling quickly, so it's essential to price your home competitively. Buyers will find that there are more homes for sale and less competition, which means you may have more negotiating power regarding price. Additionally, fewer homes are selling above the asking price, so you're less likely to experience the frustration of being outbid.

With these factors in mind, buyers and sellers can approach the market with confidence, knowing that they are prepared for whatever the future may hold.

Market shifts

While interest rates started to increase in June 2022, the California real estate market remains strong overall. It has been shown that an increase in the interest rate also increases the cost of obtaining a mortgage, which slows demand and home price growth. ‍The market is slowly shifting as demand gradually decreases.

The California Association of Realtors found that between June 2021 and June 2022, the median price of a home increased by 5.4% from $819,630. Homes are selling at a much slower pace than usual for this time of year as buyers remain cautious about making such a large purchase during uncertain times. According to the latest economic forecast released by the California Association of Realtors, the state’s median home price is projected to decrease by 8.8% to $758,600 by 2023.

Statewide, as of this summer, California home sales have gone down by 10.9%. Yet this is to be expected given the instability of recent years, particularly in terms of the pandemic. In fact, considering the circumstances, the market has been remarkably resilient. California remains a seller's market: the state’s unsold inventory index increased to 2.5 months in June, signaling a further improvement in the state's overall supply position. In June, total active listings rose by 64%, the highest rise in the previous 89 months.

For those looking to purchase real estate in Santa Cruz, now may be an ideal time to do so. With fewer buyers competing for homes, there are opportunities for negotiating leverage and a great deal on your future property. And while the market may be slowing down overall, homes for sale in Santa Cruz, CA, continue to be extremely desirable due to their ideal location.

A resilient investment

After years of watching home prices climb astronomically over 11 consecutive years, Santa Cruz County has seen a recent decrease in prices. According to data from the MLS (Multiple Listing Service), the median price for a Santa Cruz home fell from $1.6 million in March 2022 to $1.25 million in May. While some may see this as a sign of a market slowdown, others see it as an opportunity to finally purchase their dream home. Whether you're looking for stunning ocean views, a spacious yard, or a cozy place to retire, there's sure to be a Santa Cruz home that fits your needs.

As any savvy investor knows, real estate is all about location, location, location. A home in Santa Cruz is a brilliant long-term investment — although market trends may rise and fall over the years, Santa Cruz will always be one of the most desirable places to live and thus always have demand. Buyers are specially insulated from the whims of a fickle market due to their established wealth, and Santa Cruz has historically been a competitive market. Remember, although the real estate market may be cooling off slightly, there are still plenty of reasons to buy or sell a home.

For sellers, it's a good time to capitalize on the equity they've built up in their homes. And for buyers, it's an opportunity to find a well-priced property that might have been out of reach in a hotter market. With a little patience and understanding of the shifting market dynamics, buyers and sellers can adapt to the new realities of the real estate market and come out ahead.

Work with a stellar real estate team

The Pulpan Brothers team is composed of real estate agents EJ and Josh Pulpan, lending their expertise to the Santa Cruz area. Nominated as National Association of Realtors® 30 Under 30 for the Class of 2022, the two are rising stars among not only real estate agents in Santa Cruz, CA, but also the top young real estate professionals in the country. In 2021, their total sales volume was over $55 million, making them one of the top real estate teams in the area.

Their intimate knowledge of the area allows them to better serve their clients and find them the perfect home that meets all of their needs. If you're looking for a real estate team that will provide you with the highest level of service and expertise, look no further than the Pulpan Brothers Team.

Work With Us

A client-first mindset and an emphasis on authenticity, not only tends to those looking for something different out of the real estate industry, but has a way of producing extraordinary results for everyone involved.