In Santa Cruz, California, median home prices are on the rise in a big way. In fact, the midpoint of what sold jumped a full $100,000 from May to June, rising from $435,000 to $535,000 in just one short month[1]. Real estate agent Linda Burroughs calls the market “the weirdest…I’ve seen in 35 years,” while other agents predict that the “June burst,” as it is being called, will be “short-lived” as high-end property buyers hustle to close deals before jumbo loan limits drop.
Other analysts hypothesize that buyers whose stock is rebounding are getting out of the stock market and into real estate while the getting is good[2]. This could explain the relatively high number of cash purchases in the area. However, many fear that the jump will result, ultimately, in a “hangover” when the stimulus behind the demand – be it jumbo loans or other factors – disappears. Do you think Santa Cruz is on a real rebound?
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[1] http://www.loansafe.org/santa-cruz-county-median-home-price-jumps-100000-to-535000-in-june
[2] http://www.santacruzsentinel.com/business/ci_18519724
