Scotts Valley Real Estate Market Update – More Inventory on the Way

What is going on RIGHT NOW with the Scotts Valley real estate market? HERE IS WHAT YOU SHOULD KNOW – IMPORTANT STUFF…

If you read my report that I wrote not too long ago that outlined what happened in 2015, including my “quarter to quarter” analysis, I wrote the following:

2015 – “The first quarter was a strong market as there were 22 closings averaging 101% of asking price and 42 days on the market, with 45 new listings in that time frame. The second quarter was also a hot one with 48 closings and days on market went down considerably to 30 days. Closings in the second quarter averaged 100.5% of asking price. The second quarter was also the time in which more homes came on the market with a total of 67. *The hottest time that I personally saw was in the mid 1st quarter all the way to June as it became a feeding frenzy for so many buyers that homes could not come up on the market fast enough.”

( To read that entire article that covers all of 2015 including lots of useful stats, click on the following link: https://myscottsvalley.com/2015scottsvalleyrealestatemarket…/ )

The last sentence of this paragraph states that the hottest time last year was mid 1st quarter to June, and where are we now? We have just entered mid 1st quarter and based on what I am seeing out there, based on the conversations I am having with other agents and based on the phone calls I am getting from potential home sellers and buyers, I see the same for this year. Meaning, it is about to get really active in the real estate market.

Between January 1st through February 15th of 2015, there were 20 new listings that came on the market, and 7 closings at that time.

This year, during the same dates there were 17 new listings and 5 closings.

So basically there were 3 fewer new listings and 2 fewer closings this year versus the same time last year. As dire as the inventory seems today, it’s not that much of a difference than last year.

Interestingly enough, right now the contingent and pending sales are all averaging $1,070,879 and the active listings are averaging $926,369. That tells me that higher priced homes are hot right now if priced right.

THE DILEMMA: One of the issues we are having is home sellers being afraid to place their home on the market fearing that they will not have another home to buy when they sell their home. It is a very common and realistic fear that existed last year at this time also, but one that can be eliminated by putting a clause in the sale of your home that the sale and even listing is contingent upon you finding and closing on a replacement property.

*BUT HERE IS THE KEY: You need to put that in the listing agreement because you COULD be liable for a commission if you sell your home and then cancel it because you did not find a replacement property as the agent could claim that they brought you a qualified buyer at your terms of the listing agreement. I am not saying it will happen, but it could and I am saying that this is a very legit concern and liability. I am one that likes to play it safe. Hey, better safe then sorry.

Things are about to heat up in the Scotts Valley real estate market, as they will do throughout the area. The selling and buying season is here. Look for an increase in inventory and also an increase of home buyers to start getting serious about buying.

Good luck out there!