The rains are starting again. Yay!!! This is great news for California. It is not always great news for Santa Cruz home sellers.
Many Silicon Valley rental property investors go to Santa Cruz when the sun is shining and the temps are in the 70's, see what a great place it is, discover how high the rents are and how relatively affordable the Santa Cruz housing prices are, and decide to buy a Santa Cruz rental property in the summer, along with the everyone else.
As you can see from the chart above there was significantly less competition for Santa Cruz homes last winter in the heavy rains than after the rains stopped. The chart shows sales to list price ratios by month. In general, the more buyers there are the higher the price will be and the higher over list price a Santa Cruz home buyer will need to offer.
I have written about why a Silicon Valley property investor should buy a rental property in Santa Cruz , http://activerain.com/droplet/57l7 but just to summarize:
Santa Cruz has a high percentage of residents renting: 63%
Santa Cruz rents are high, $1200+ a bedroom
Santa Cruz Rental Vacancies are low 1.64% in 2015 and getting lower
Santa Cruz housing prices are significantly lower than prices in the Silicon Valley Average sales price in Santa Cruz is current;ly $950,000 and in Santa Clara County $1,400,000
So if you are a Silicon Valley property investor thinking of buying a Santa Cruz rental property, get out your umbrella, put on your boots, and drive over 17 looking for a Santa Cruz rental property to buy.
eXp Realty of California
Specializing in Probate, Trust, and Investment Properties