Santa Cruz Real Estate & Community News

JUNE 2009
Santa Cruz Real Estate and Community News
We seem to have turned the corner, as prices are going up. And in Watsonville the market is getting hot. So if you've thought about buying investment property, now is a good time. The competition is tough on the well-priced properties. Highlights: Santa Cruz County home prices up 4.7% in May from April. Home sales up eleventh month in a row. Year-to-date, home sales are up 21%. Inventory declined for the thirteenth month in a row: down 39.8% from last May.
Quick links ... My Blog Statistics Newsletter Search Listings Summer at UCSC ... See a play. Visit the Farm. Learn about marine mammals. Check out this summary of summer activities at UCSC. Other news Astronomer Greg Laughlin was interviewed on NPR's Science Friday and ABC Radio (Australia) about the possibility of collisions between Earth and the inner planets. There's also a picture of Ira Flatow, in case you enjoy listening to his program and are curious about what he looks like. Feedback I welcome your comments about this issue and ideas for future ones. Send me email Referrals If you know anyone who is thinking about buying or selling real estate in Santa Cruz County, please let me email or call me at 831.246-4663 Thank you!	In this issue: Home prices rise | Pending Home Sales Up Third Month in a Row | 2009 First-time Home Buyer Tax Credit | Mortgage Rate Outlook To read a PDF of this newsletter, go to my website. Market News Santa Cruz County Home Prices Continued to Rise in May The median price for single-family, re-sale homes rose 4.7% from April. The median price was off 23.9% year-over-year. The average price fell 9% month-over-month, and was down 30.2% compared to last May. Sales of single-family, re-sale homes were up, year-over-year, by 10.3% in May. Year-to-date, home sales are up 21%. Inventory was down 39.8% from last May. This is the thirteenth month in a row inventory has declined year-over-year. [More] Pending Home Sales Up Third Month in a Row Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®. [More] Mortgage Rate Outlook Bond and mortgage markets spasmed at the end of May, and the corresponding sharp rise in rates over a two-day period served as a reminder that even a battered private market markets can be a dangerous animal. It wasn't completely clear what sparked the rout, but there was speculation that a combination of unclear goals in Federal Reserve quantitative easing programs, floods of new sovereign debt and shoddy treatment of GM bondholders all led to the selloff. [More]   Real Estate News 2009 First-Time Home Buyer Tax Credit As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. WHO QUALIFIES? First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. [More] Zero Profit Doesn’t Mean Zero Capital Gains Taxes In this difficult market, many taxpayers are selling property in short sales or other transactions with no profit. Unfortunately, what many taxpayers do not understand is that property may be sold with no profit, but still be subject to significant taxable capital gain. [More]
Green Corner I did a test in my garden this year. One raised bed is filled with topsoil from a local dirt store; the other is filled with compost, from the dump. You won't believe the difference! Check out the pictures.