Home prices are still hot in Santa Cruz County, Calif., but some signs point to seasonal cooling.
In July, the median price, the midpoint of what sold, for a single-family home was $815,000, up from $761,500 a year ago, according to Gary Gangnes of Real Options Realty, who tracks the numbers.
For the first time, the median price topped $800,000 for nine consecutive months, he said.
However, the July median price is down from the peak of $875,000 in May and close to the $810,000 median in January.
Sales dropped, with 138 homes changing hands, down from 225 in July 2015 and the fewest for July since 2011.
As of the first week in August, 54 percent of 383 active listings were priced at more than $1 million.
Demand is high for homes on the Santa Cruz Westside.
Of the 11 Westside sales in July, eight sold for more than $1 million, according to Gangnes.
He represented the seller of a Westside three-bedroom home at 647 Almar Ave. listed in June at $839,000.
The home got five offers and sold in a week for $910,000.
"We didn't know it would go that high," said Gangnes. "The seller did all the right things."
Those things included adding a second bathroom, putting in a new kitchen, windows, floors and roof, and professionally staging the home, which is across from Garfield Park and an eight-minute walk from Swift Street Courtyard, Mitchell's Cove and two groceries.
Gangnes said 35 percent of sales countywide in July sold for more than the asking price, up from 33 percent in June.
Among the current listings is a four-bedroom solar-powered geodesic dome home on 3.3 hilltop acres at 235 Dorrance Road in Boulder Creek. The price has been cut from $1.08 million to $998,000.
The seller said having his own well water and firewood supply was economical, and his vegetable garden got plenty of sun.
Some lenders are reluctant to make a loan to buy a geodesic dome because domes do not fit into guidelines written by Fannie Mae, the government-sponsored enterprise that buys mortgages.
"Not every lender can do it, although we have some banks that have great programs for domes," said Kasey Hinchman of David Lyng Real Estate.
First-time buyers can purchase a two-bedroom condo at Harbor Walk, 755 14th Ave., Santa Cruz for $338,203 if they meet the county's Measure J income guidelines, with a two-person household earning no more than $83,500.
The seller of another two-bedroom unit at Harbor Walk that is not part of Measure J program is asking $514,880.
To keep Measure J units affordable, a formula determines the resale price rather than market value.
Harbor Walk's two-bedroom units are less than 800 square feet but the complex has a new fitness center, four barbecue areas, a pool heated to 82 degrees and proximity to Schwann Lagoon.
Rising prices have brought back the adjustable-rate mortgage, which fell out of favor after the 2008 housing market crash as buyers preferred fixed-rate certainty.
Nationwide, adjustable-rate mortgages comprised 8 percent of mortgages in the first quarter of this year, with 47 percent taken out by high-end buyers with mortgages exceeding $1 million, according to CoreLogic, which tracks property data.
On the $514,880 Harbor Walk condo, a 30-year fixed mortgage at 3.5 percent could mean a monthly payment of $1,849. With a 5/1 adjustable loan at 3 percent, the mortgage payment could drop to $1,736 a month but in five years, the interest rate and the payment could go up.
