While it may be good news to hear that the median home price for a single-family residence in Santa Cruz County dropped by 2% to $760,000 in May, the truth is that this price is still not affordable for most first-time buyers. Compounding the problem is the fact that an increase in foreclosures has led to no-income-verification, no-down payment mortgage options being "taken off the shelves."
Those who have the money "to pay cash or leverage their existing properties" are still in the game in Santa Cruz County, however. According to Gary Gangnes of Real Options Realty, 27 homes sold for more than $1 million in May and 6 of those sold for more than $2 million.
While the dip in median home price seems too little for those who need a mortgage, the news shines a ray of hope in unexpected places. According to Jondi Gumz of the Santa Cruz Sentinel, UCSC welcomes the price drop as it finds its junior faculty leaving town for more affordable housing. Faye Crosby, the chair of UCSC's academic senate, says the new median is great news for the university's recruiting efforts.
To read Jondi Gumz' article in its entirety and to see market statistics for Santa Cruz County for the month of May, go to Median Home Price Dips to $760,000.
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