Wow. The median price of a home in Santa Cruz County now hovers at $900,000. How can that be?
Housing affordability continues to decline across the nation but particularly in the west - and our area as well as the bay area, is contributing to that trend. Mortgage rates are also partly to blame. They have been creeping up. The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principal and interest payment to income).
The "Months of Inventory" statistic is how long the average home takes to sell. When this number is around 5 or 6 it's considered a balanced market. When it is around 2 or 3 a sellers market and 7 or 8, a buyers market. It is definitely a sellers market.
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