RECAP – 2018 sales volume is flat compared to 2017. 1,668 homes sold in Santa Cruz County at an Average Price of $833,869. In Aptos, 263 homes sold at an Average Price of $1,199,047 and Median Price of $1,003,000; much higher than the county but same as 2017. Up until September, Average Days on Market (DOM) were low; homes = 38, condos = 17, townhomes = 23.
It was a “Seller’s Market.” High beach property sale is $5.5M for 1106 Via Malibu, non-beach high sale is $2,450,000 for 951 Old Farm Lane, I sold 444 Pebble Beach for $1,150,000 (right at the medium) and low sale is 757 Cathedral (2/1.5) at $451,500. 34 Townhomes sold. High sale is $966,000 for 1075 Via Tornasol, low sale is 3003 Cabrillo (2/2) at $480,000.
Twenty-four condos sold. High sale is 260 RDM Blvd #24 at $1,278,000, low sale is 2601 Willowbrook #6 (2/1) at $492,500. So, you can still buy a house, a condo, or a townhome in Aptos for under $500,000, but rarely.
ACTIVE LISTINGS – CURRENT MARKET – There are 64 homes for sale in Aptos ranging from $680,000 for 3516 Redwood Drive to $5.5M for 198 Shoreview. Median List Price is $1,250,000 (too high) and DOM is 75 (too long). There are 13 Active townhomes from $541,000-$937,000. There are 16 condos from $495,000-$1.3M. The market has slowed down; it is more of a “Buyer’s Market” right now. Some of this is seasonal, some of this is interest rates, and some of this is unclear. I project that it is a good time to be a buyer through February 2019. I do think inventory will grow in March and April of next year, the best time for a seller to list.
SELLERS — As prices rise, so have buyer expectations. A seller must do much more up front these days. Completing a home and a pest inspection ahead of time is a must-do, and completing some repairs is a plus. Professional photography and visual tours are standard. I just implemented “Virtual Staging” for the first time for one of my listings where I took my vacant house photos and had furniture placed into the photos to show the buyer the “potential” look of the new home. 3-D tours and drone photography are readily available. Speak with your agent about what would work best for your property.
INTEREST RATES — The Feds raised the rates three times in 2018, and it is expected that they will raise rates at least two more times in 2019. In December 2017, bankrate.com quoted 4.09 percent for the 30-year fixed. As of Nov. 28, their national quote is 4.86 percent, and many loans now are breaking 5.0 percent. Both Zillow and Realtor.com predict rates at 5.8 percent by year end. A $500K/30-year loan at 5 percent = $2,684/month, at 5.8 percent = $2,934/month; $250 more per month. 2019 increases will affect buyer’s ability to buy but I do not think it will impact housing prices here.
LOAN LIMITS — For most of the country, $484,350 is the new 2019 limit. For high-cost areas (which we are) the new limit is $726,525. With FHA financing, you can purchase a home for as little as 3.5 percent down and there are many new loans that work with 5 percent down, so as long as you can qualify to make the payment, you do not have to have a whopping 20 percent down to buy a home. Contact a local lender for more details.
I am happy to announce that I will be moving to my new Sereno Aptos “digs” on Parade Way in Aptos Village, hopefully before the end of the year. I will be able to walk to work! The one constant I know is that Aptos is a very special place to live! Happy Holidays to All!
