Capitola real estate market

Beach at Capitola.
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The Capitola real estate market, which was devastated by the woes of the state and national economy, is beginning to trend towards a tentative recovery. According to a May 24, 2010 article in the Mercury News, “Santa Cruz County saw fewer single-family homes sold in April compared to a year ago, but the median price rebounded from $420,000 to $553,000, the highest in 20 months, as distress sales dipped. Two years ago, the midpoint of what was sold was $661,000.” The piece by Jondi Gumz continued to say that “Last month saw 33 bank-owned sales and 17 ‘short sales,’ where the home is sold for less than the debt, compared to 56 bank-owned sales and 11 short sales a year ago. Entry-level buyers won’t see much in the $350,000 to $400,000 price range, but more than 60 homes are listed for over $2 million with few takers. ‘We’re bouncing along on the bottom,’ said Santa Cruz developer Bill Brooks.”

The rallying economic climate of Santa Cruz County and the Silicon Valley should lead to more Capitola homes for sale being purchased. According to a May 27, 2010 article in the Santa Cruz Sentinel, “Santa Cruz is closely tied with Silicon Valley, which is seeing the strongest early recovery. The ag sector, which added jobs, has been a buffer; without it, the county’s job loss would have been 7 percent.” The article, which relied heavily on the estimates of economist Jeffrey Michael, went on to note that “In the long run, the health of the local economy will depend on these factors: more than doubling research and development jobs, now at 500; whether baby boomers stay or move for a lower cost of living; and whether construction and real estate picks up.”

The high unemployment rate in Santa Cruz County, which inhibited the recovery of the Capitola real estate market, subsided slightly in the month of April, according to a May 21, 2010 article in the Santa Cruz Sentinel. This piece, also written by Jondi Gumz, stated that “Santa Cruz County added 2,000 jobs in April, cutting unemployment from 15.2 percent to 13.5 percent, the state Employment Development Department said Friday, but job growth was less than usual for this time of year.”

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