SANTA CRUZ COUNTY, CA — The median price of a home in Santa Cruz County continued to increase in March, according to the Realtors Association's data.
The median cost of a single-family home in the county went up from $1.38 million in February to $1.6 million in March.
Compared to March 2021, the median home price in Santa Cruz County has gone up by 45.5 percent, the highest increase in California.
Statewide, the median price of a home hit another record high of more than $849,000 in March, driven by a surge in the sale of higher-priced homes, the Realtors Association's data show
According to the Realtors Association, with rising interest rates not yet having a significant impact on sales figures, demand remained strong statewide.
The closed escrow sale of existing single-family homes statewide totaled 426,970 in March -- based on a seasonally adjusted annualized rate, the association's monthly data show. That annualized figure represents what would be the total number of homes sold in the state in 2022 if sales maintain March's pace. Realtors adjust the figure to account for seasonal factors that can influence home sales, the association said.
That sales number is up 5% from February but down 4.4% from March 2021, data show. The year-over-year drop for March was the ninth straight but the smallest in eight months, data show.
March's statewide median home price of $849,080 was up 10.1% from February and up 11.9% from March 2021. But year-to-date statewide home sales were down 7% in March.
The new statewide median price topped the previous record of $827,940, set in August 2021. It also put the average price above the $800,000 mark for the first time in six months.
According to CAR calculations, the change in median price from February to March was the highest since March 2013, while the 10.1% jump from February was the first time in nine years that the month-to-month increase was in double digits.
Sales of million-dollar homes fueled the March statewide median price increase, according to the association, which reported they represented a record 32.9% share.
"March sales data continues to suggest strong buying interest and a solid housing market, as the effects of higher mortgage interest rates won't be realized for a few more months," said CAR Vice President and Chief Economist Jordan Levine.
"With the Federal Reserve expected to announce two back-to-back half- point interest rate hikes in May and June to combat inflation, interest rates will be elevated for the foreseeable future, adversely affecting housing demand and lowering housing affordability in the coming months, but the effects may not be visible until the second half of the year as many of the homes that are, or will be, closing were negotiated before the sharp increase in rates."
The Realtors' monthly numbers are gleaned by the association from more than 90 local Realtors and multiple-listing services statewide.
Source: Patch
