Santa Cruz Real Estate Median Price Increase

Santa Cruz Properties- The median price for a single-family home in Santa Cruz County climbed from $500,000 in February to $519,000 in March with an increase in the percentage of sales over $1 million, As reported by The Santa Cruz Sentinel.

The median, the mid-point of sales, is up dramatically from the market bottom a year ago, when it was $399,000, but down dramatically from the boom two years ago when it was $650,000.

Last month, 12 percent of the sales were for more than $1 million, compared to 5 percent in February. It was the first time since September that high-end sales were in the double digits.

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Santa Cruz Homes For Sale In High Demand

Santa Cruz Real Estate - Nearly two-thirds of Americans would still prefer to own a home, The recent housing market turmoil and uncertain economic times have made potential buyers of Santa Cruz properties a little more cautious about how and when they will buy a home, according to a survey released Tuesday.

A nationwide survey conducted by mortgage lender Fannie Mae found 65% of the homeowners and renters believe there is still value in owning a home.

But the survey also suggests that potential home buyers have become more cautious in the years since the housing bubble burst, giving rise to a wave of foreclosures and a severe recession.

"Consumers are still committed to owning a home, but are showing increased cautiousness," said Doug Duncan, chief economist at Fannie Mae.

He said the downturn in the housing market has led to a "rebalancing" of consumer attitudes towards home ownership. Americans are adopting a more realistic approach and are now less willing to take risks, he said.

The survey showed that home buyers are growing more concerned with longer- term priorities, as opposed to the house "flipping" mentality that characterized the market during the boom years.

Over 40% said personal safety was their main consideration when buying a home, while a third indicated that the quality of local schools was the dominant factor.

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Santa Cruz Home Mortgage Rates On The Rise

Santa Cruz home mortgage rates for 30-year home loans rose this week to the highest level in eight months perhaps because of the improving economy and the end of a government push to keep mortgage rates low.

The average rate was 5.21% this week, according to Freddie Mac's weekly survey of conforming mortgage rates, released Thursday. The mortgage averaged 5.08% last week and 4.87% a year ago. Mortgage rates have not been higher since the week ending Aug. 13, when it averaged 5.29%.

Mortgage Rates had dropped to a record low of 4.71% in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended last week, but the Fed left the door open to reviving the program if the economy weakens.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often tracking the interest rate paid on long-term Treasury bonds.

Treasury yields have climbed steadily in recent weeks because of weak demand. The government has had to offer a better interest rate to sell its bonds as investors shift toward stocks and riskier corporate debt.

"Once again, mortgage rates followed bond yields higher amid a positive March employment report," said Frank Nothaft, Freddie Mac vice president and chief economist, in a press release.

The 15-year fixed-rate mortgage averaged 4.52% for the week ending April 8, up from 4.39% last week; the mortgage averaged 4.54% a year ago. This week marks the highest weekly average for the mortgage since Dec. 31, when it also averaged 4.54%.

Mr. Nothaft said that the home-buyer tax credit is showing some impact on housing-market activity, and many first-time home buyers are using government-insured mortgages to make their purchases.

"Compared to the week ending Dec. 4, 2009, which was the first week after the original expiration date [of the first-time home-buyer tax credit], mortgage applications for home purchases are up 17% for the first week in April of this year for government-insured loans, compared to an 11% decline in conventional loans, according to the Mortgage Bankers Association," he said.

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