It has been quite a year — in real estate, and in so many ways! 2017 saw flat sales transactions overall but an increase in sales volume.
In 2016, total volume for Santa Cruz County (SCC) was $15.6B on 1,754 home sales, 200 townhome sales and 285 condo sales. The Median Home sales price was $785K. In 2017 (through Dec. 15), total SCC volume is $16.5B on 1,756 homes sales, 193 townhome sales and 277 condo sales. The Median Home sales price is now at $840K, a 7 percent increase year over year. So, number of sales is flat but sales revenues are up $1 billion in our county.
In Aptos, sales transaction are also flat, but Median Sales Price on homes rose by 16 percent (more than double the county average of 7 percent) from $865K in 2016 to $1000K (yup, that’s $1.0 million) in 2017. Condo median prices went up 18 percent, but townhomes only went up 4 percent. Currently there are 39 homes on the market in Aptos at Avg. List Price of $1,250,000 (Maximum price $5,950,000, Minimum price $725,000), but days on market average 103, so some of these prices will have to come down.
The Aptos Village (theaptosvillage.com) is almost ready to begin releasing sales of the first 33 homes, townhomes and condos. Prices are not yet announced, but the website does show BLG 3=16 condos on 2nd and 3rd floor, BLG 11 = 6 two-car garage and BLG 12 = 11 One-car garage homes/townhomes on Granite Way. I believe that there will be 3-4 “affordable units” (County Affordable Housing program) available within this release. Check the Aptos Village website for pricing and availability updates.
The feds did raise the interest rate another 1/4 point on Dec. 13, but so far, mortgage rates remain at historical lows. Bankrate.com on Dec. 15 quotes 4.09 percent for a 30-year fixed mortgage. A year ago, the rate was 4.30 percent (and 3.95 percent in 2015). The (soon-to-be) new tax laws will create significant changes to housing write-offs. Some of the proposed changes include capping the sum of state and local income tax and property tax write-offs (on primary residences) at $10,000. This would mean that any home purchases over $800,000, assuming a 1.25 percent Property Tax rate, would not allow a tax deduction for any amount over $800,000, and no write off at all for state taxes on the federal tax form. The latest tax proposal caps the mortgage deduction write-off at $750,000 (a compromise between House wanting $500,000 and Senate wanting $1,000,000 caps). This will only apply to new home purchases.
The one constant I know is that Aptos is a fabulous place to live! I’m hopeful for a wonderful 2018! Happy New Year to all!