• The month of August continued the strong market for Santa Cruz County real estate sales, even in spite of devastating fires that impacted the region starting in late August. The market is still experiencing high demand as people from San Francisco, Santa Clara, and San Mateo counties are flocking to the region in search of lower-cost single-family housing where they can work remotely but be close enough to commute if needed 1-2 days a week. The fires reduced the overall housing stock, and will put additional pressure on an already impacted sales and rental market.
• Year-over-year median single-family home prices increased for August, and prices are up about 20%. Condos and townhomes are also up by about 13% when compared to August of 2019.
• Inventory levels for single-family homes are down over 50%, and hit their peak in May. Condo/townhome inventory is down about 15% from the same time last year, but has been decreasing over the last couple of months at an accelerated rate likely due to some of the displacement due to fires.
• With 1.8 months of SFH inventory and 2.0 months of condo/townhome inventory, the market is still tilted toward sellers as we enter September. We are still seeing multiple offers for many homes on the market, but the initial pricing is key, and overpriced homes are still sitting with little activity.
• Interest rates at the end of August and into September are hovering around 3% for Jumbo 30 Year fixed loans and also for 7/1 and 5/1 ARM products. Conforming 30 year fixed loans have been advertised as low as 2.5%. While interest rates are low, the jumbo mortgage market is still going through struggles, and borrowers are required to have high FICO scores to achieve these rates. In addition, higher down payments and higher reserve ratios may be required by some lenders.
• The Federal Reserve has committed to keeping rates low based on their recent commentary, and the fact that inflation has been tame, most market analysts believe the mortgage market should trend sideways for the foreseeable future.
• Sereno Group expects to see a fairly busy market in the Fall as our agents are busy and the sales pipeline through October appears to be pretty full for many brokerages. Inventory will be tighter, mortgage rates should stay low, and consumer confidence appears to be recovering, but there are some potential headwinds in terms of commercial mortgage defaults, rental rates dropping in some areas, and also some potential foreclosure and eviction activity after the moratoriums are lifted.
• Sereno Group just welcomed the Granger Group in Lake Tahoe to our team, so now we have a direct relationship with the Lake Tahoe marketplace if you are considering a move. We also have some positive relationships in the Sacramento areas, as well as throughout the entire country, with like-minded brokerages and would love to support any moves you are looking to make!

Don't hesitate to reach out to discuss your situation and see if now is the right time to buy or sell a home. My advice is free, and I love to help!