The Santa Cruz County Housing Market in 2008

Will Santa Cruz County succeed in "bucking the statewide housing trend"?

According to Sentinel staff writer Jondi Gumz, some say it can:

"Santa Cruz County is expected to bypass the statewide housing trends in 2008.

Alan Nevin, economist for the California Building Industry Association, said his statewide prediction for smaller homes and lower prices might come true in San Luis Obispo but not in Santa Cruz.

'The problem in Santa Cruz is supply,' said Jeff Becker of DMB Associates in Hollister and association chairman. 'You're not going to see smaller homes there at lower prices. Builders can build larger and always have a buyer.'

The CBIA forecasts 2,200 housing starts in the Central Coast area, which runs from Santa Cruz to Santa Barbara counties. From 2002 to 2005, an average of 4,581 single-family homes got permits; the number dropped to 2,000 in 2007. Multifamily homes, often less than 1,000 units, are not a significant factor.

Between 2,000 and 3,000 new jobs are projected in 2008, a slight improvement over 2007, but down from 7,000 in 2005.

Here's what locals expect:

Jeff Talmadge, Aptos builder: 'I think pricing from trade contractors will be lower this year than last year. I have had some of them tell me they will be more aggressive about going after more types of work than in the past. There have been more instances of contractors who are based over the hill competing for jobs here in Santa Cruz than I have ever seen before. From an environmentalist's standpoint, I like to see homes heading toward being smaller.'

Dennis Norton, Capitola land-use planner: 'Nothing new is coming down the pike. I think it's going to be a slow year. The business in Santa Cruz is remodeling; compared to new homes, the ratio is 10 to 1 or 6 to 1. The only people building are on the high end, people who aren't affected by the economy. A third of my clients are like that. They're from over the hill. One paid $2.7 million for property in Pleasure Point, tore down the house and will probably spend $2 million to build. As for smaller houses, I don't see that. That may be true in the spec business but nobody is in the spec business now. Maybe the condos under construction on 41st Avenue. They just started framing on that project.'"

B of A Set to Buy Countrywide

Bank of America Corp officially announced today that it will buy mortgage lender Countrywide Financial Corp for $4 billion dollars.

According to Reuters, "Countrywide's market value has slid by about $22 billion in the last year." Caught in the subprime mess up until now, hopes are that the merger will "avert one of the biggest collapses in the U.S. housing crisis."

Bank of America and Countrywide will combine to create the nation's second-biggest mortgage lender.


Bank Of America to Buy Countrywide For $4 Billion, from Reuters via the New York Times

Press Release: Frank Murphy - Expertise in Luxury Home Market

Frank Murphy with Keller Williams Realty Luxury Homes Division of Santa Cruz recently completed a luxury home marketing training course offered by the Miami Board of Realtors.

The course - which covered such topics as demographics of the affluent, lifestyle segmentation, trends and amenities in today’s luxury home product, and creating a marketing plan for the multimillion dollar property – was taught by Laurie Moore-Moore, President of the Dallas-based Institute and author of the book, “Rich Buyer, Rich Seller! The Real Estate Agents’ Guide to Marketing Luxury Homes.”

“The course is a step towards earning the prestigious Certified Luxury Home Marketing Specialist designation which The Institute awards internationally to sales professionals who meet performance standards in the upper-tier residential market,” said Moore-Moore. Frank Murphy is an example of a sales associate who works to hone the special skills and competencies necessary to provide exceptional service in the fine homes and estates marketplace.”

Frank Murphy is an award-winning sales associate who has been in real estate since 1997 and specializes in the Santa Cruz County market. Frank is currently one of the 25 Top Producing Realtors in Santa Cruz County.

“The training provided new insight about the upper tier market, helped me polish my skills, and provided valuable networking contacts with other agents across the country who specialize in luxury properties,” said Murphy “In addition, I discovered new and creative tools for promoting expensive homes and estates and new resources for finding buyer prospects. Home buyers and sellers will benefit from my new knowledge.”

For current information on the upper tier market, contact Frank Murphy at Keller Williams Realty Luxury Homes Division of Santa Cruz at 831-457-5550 or email Frank@FrankMurphy.net

www.frankmurphy.net