August's median price of single-family homes sold in Santa Cruz County, Calif., dropped to $877,000, according to Gary Gangnes of Real Options Realty, who tracks the numbers.
In August 2018, the median price was $920,000. From 2012 to 2018, the median price rose each August compared to the year previous, according to the numbers.
"The market is coming into more of a balance between buyers and sellers, but it's been a sellers market for many years," Seb Frey, 2019 president of Santa Cruz County Association of Realtors, told the Sentinel. "Despite all the stories you hear about people leaving Santa Cruz and the Bay Area, the fact is that not enough people are leaving such that it will free up enough housing for those wanting, or who can afford, to buy here. Santa Cruz is a 'destination location' — once people get into a home here, they tend to hold on to them for decades."
One single-family home that sold close to the median was 4827 Rivervale Drive in Soquel. With two bedrooms, two bathrooms and 1,488 square feet, the home was listed March 21 for $915,000, according to Zillow. It closed escrow Aug. 22 and sold for $870,000.
"I feel I'm seeing more reduced prices this year at this time," said Sue Seeger, a David Lyng Real Estate agent. Seeger was the buyer's agent for the sale.
Seeger said the buyer was a young family from Aptos who wanted flatter land and more square footage.
"Buyers are looking for open floor models, remodeled kitchens and bathrooms," Seeger said.
Fewer single-family homes sold last month than they did a year ago. In August 2018, 185 homes sold, compared to 167, according to real estate statistics.
Frey said many would-be buyers are not purchasing homes because they are afraid another price drop will happen like it did in 2008.
"You can't live your life in fear of a zombie apocalypse," Frey said.
One statistic used for the housing market is the unsold inventory index, or the time it would take to deplete housing inventory.
The August unsold inventory index is 3.7 months, up from three months a year ago, according to the statistics. The index has increased for 12 consecutive months, with each month compared to the same month the previous year, according to Gangnes. As the index rises, the market gradually becomes more balanced between buyers and sellers.
While the unsold inventory index for single-family homes increased, the unsold inventory index for condominiums and townhouses decreased, from 3.8 months in August 2018 to 2.5 months in August 2019, according to the numbers.
As the inventory index gets smaller, home prices are more likely to increase. However, that is not the case here. Gangnes said condominiums and townhouses are a little more affordable because interest rates have dropped, which encourages more consumers to buy, according to Gangnes.
