The following data are for zip codes 93907 and 95004.
As of April 30, the active listings in these zip codes stood at only 45, an increase over last month's 36 but still way below normal. This is a condition that is resulting in multiple offers on almost every house They range from $154,900 to $979,900. The median price is $349,950. There is quite a variance in the properties in terms of size, location, lot size and age, accounting for the differences. Some of them represent very good values. The median number of days on the market is 35, a number not matched in over 2 years.
As of April 30, there were 85 houses in various stages of escrow, a slight change from last month's 86. These range from $59,000 to $515,000 with a median of $289,000. The median number of days on market was only 32, an amazingly short time compared to the last 4-5 years. The reason for it is largely due to the idea that appealing houses are not coming on the market fast enough to satisfy the demand. So what's there sells more quickly. And, of course, continued low interest rates helps a lot. A bank owned house had 14 offers on it.
The 3 months ended April 30 saw 59 houses close escrow, up from 55 in the first quarter. The range was from $60,000 to $650,000 with a median of $266,000. The median number of days on market was an unbelievably low 37. In analyzing the data, I was surprised that many sales were at or above the asking price and took place in 0 to 10 days. Look for this to increase in this seller's market.
The supply of unsold inventory (determined by dividing the present number of listings by the number of sales over the previous 30 days) is down to only 1.5 months. This means that all current listings would be sold in 1.5 months, a strong indicator of a seller's market. Even so, prices are not shooting up but appear to be leveling a bit. If the factors remain, however, inevitable pressure will be put on prices in the coming months.
A consequence of growing regulation in the appraisal industry is having a tendency to keep prices from spiraling up. Appraisers are reluctant to reflect true market activity for fear of offending supervisors and lender's review appraisers who don't even see the houses. As banks tend to expose more of their "shadow inventory" to the market, there will be less incentive for rapid price increases. All in all, this is probably a good thing as it will uphold the affordability.
I am encouraging my clients to work with highly qualified lenders with deep experience and lines of credit, lenders like our affiliate, Princeton Capital, a nationally recognized mortgage banker. We have 2 outstanding and experienced Princeton agents in my office. They stand ready to serve you.
People are going to have to establish a relationship with a qualified professional Realtor to be serious players right now. They must also come to grips with having to have a preapproval letter so their offers are given serious consideration. Give me a call. I'll be glad to help.
ZIP Code: 93907/95004 Approximate Location Boundaries: Surrounds the confluence of 3 county lines: San Benito, Santa Cruz and Monterey.
Location Characteristics: The zip codes 93907 and 95004 represent the unincorporated communities of Prunedale and Aromas. They are the transition from San Benito County to Monterey County along US 101 and to Santa Cruz County along CA 129. Rural in character, a lot of sites are 5 acres or more, accommodating the many equestrians who inhabit the area. Most homes are relatively modest but some are quite elaborate. Some even qualify as "estate" quality including a few that have private gates or are in private gated communities. The area should definitely be on the radar scope for house shoppers in all price ranges.
Prunedale has the more extensive commercial facilities with major groceries, banks, etc. Aromas has a small core area that is very limited of stores. The proximity to Highways US 101 and CA 129 provide good commute routes to Monterey County, Watsonville and Silicon Valley. Major shopping is South in Salinas and Monterey or North in Gilroy, Morgan Hill and San Jose.
This microclimate is strongly influenced by Monterey Bay, just a few miles away with beautiful beaches, fishing and other attractions. Even the warmest days will be cooled to a comfortable level in the early evening by breezes from the Bay that will usually bring a pleasant cloud cover as well. It's importance lies in the fact that it provides a desirable rural area close to work centers with a wonderful equestrian environment as well as a relaxing place to live but not too far from the conveniences provided by the city.
Come and check out Prunedale and Aromas. There could be just the right answer for your future home or even a second home. In addition to homes, there are some choice lots available as well.
About Jack Markle:
As a licensed broker since 1980, I have applied my skills, knowledge and professionalism to assist many people in the buying and selling process. A real estate loan agent for some years prior to that gives me an unusual perspective on that process. With a broker's license, it means that I can hang my shingle anywhere and ply the trade. Instead, I prefer to continue, after 15+ years, under the auspices of Coldwell Banker where I find a unique environment in which to practice. We have a marvelous marketing department that provides simply outstanding backroom support. Our on-staff legal department is second to none. Although they cannot offer our clientele legal assistance, they do help us and assure us of the latest knowledge in real estate legal matters. So, it's a great combination of talents. With my lifelong residence in the greater Bay Area, I offer one-stop service over a significant area. So, if you choose to move locally, I am here to help at both ends.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
