The following market report is provided by Liz Kroft & Lance Hulsey of Mainstream Real Estate Group.
This last month saw Germany looking for Greece to pay their own way. Greece went begging for more time and money to the European Union and the International Monetary Fund. Germany capitulated and Greece received a restructured loan deal and the housing market in Santa Cruz benefits.
How does the Greek debt crisis have anything to do with the Santa Cruz housing market?
And by the way, since when did this become a blog about international monetary policy?
How does any of this really have any relevance to rents, home prices, and the real estate market in Santa Cruz?
Well it all has to do with the strength of the dollar around the world and interest rates closer to home. Long story short, because the European Union lent the money to Greece we averted an international monetary crisis and the dollar came out stronger while interest rates remained stable. Thus, everything basically stays the same and the banking system and the Federal Reserve take a sigh of relief.
Now we can focus on the big question on everyone’s mind once again:
Are we in a bubble?
In our March 9th article we commented on how the 2015 market was coming out of hibernation and perhaps into a bubble. Other economists and industry experts seem to believe that we are in a bubble:
- Bay Area Entering Housing Bubble? One Expert Thinks So
- San Francisco exhibiting potential signs of a housing bubble
- Head’s up! There’s a housing “bubble” forming in markets beyond San Francisco
Yet others say that we are in fact NOT in a bubble:
In considering your opinion, take these two piece of information as you will:
- The Santa Cruz County median home prices are the highest they have been since 2007
- The National Foreclosure Inventory Is the Lowest it has been since December 2007
For the housing market’s continued recovery, there is no doubt that affordability is going to be a major deciding factor.