Attached, please find the most updated Market Dynamics statistics for Santa Cruz County through December 2011.  These statistics are for Single Family and Condo/Townhomes in Santa Cruz County.

Here are some highlights to pay particular attention to as you review the data/graphs through December 2011:

1.     Median Price- We had a modest uptick to end 2011 @ $419,500 (up from 390k in November).  December 2011’s median price is lower than the same month for 2010 & 2009 ($433,500 and $494,600 respectively).  The two year average Median now stands at $444,000.  

2.     Supply & Demand (Units)- Here we measure the two year trend line for the following categories: For Sale (supply/inventory), Under Contract (pending sales) and Sold (c,losed escrows) - For Sale properties/inventory beginning a slight downward trend now @ -4.7%.  The number of under contract properties (pending sales) improved again substantially to (+26%) and the sold/closed escrows spiked up from their September flat-line for the 3 month in row to +13.8%.  Increasing Pending Sales (new sales) are again the highlight of this month’s market report for Santa Cruz County.  Pending Sales were at 170 at year end as compared to 126 a year ago December (2010) and also 132 in December of 2009…so great improvements in the year over year # of sales…

3.     Month’s Supply of Inventory (MSI) & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) declined for the six month in a row and ended 2011 near a five year low at 4.1 months supply,  other comparisons, 12/10 was 7.8 (nearly 2x) and 12/09 was 6.8 MSI….   Days on market increases every December so not a real meaningful stat to cover at year end..., however, ranged from 60-90 DOM for 8 mos out of the year in 2011.

4.     Sales Absorption- Once again, we are measuring the two year average trend line in this category which shows under contract properties trending way up to finish the year at the most positive level in over 2-3 years +34.5% and number of closed/sold escrows trending into very positive territory +22.7%.   Percent Under Contract….finished the year at a 3-5 year high of 16.6% of the active properties/listings were under contract. a further comparison December 2010/9.4% and December 2009/10.9%).  This percent under contract figure is proving to be a key marker as the two year average stands at 12.7% and we are presently well above this mark and nearly double the percentage from 1 year ago.  As I have mentioned in our sales meetings, this is the highest percentage of active listings we have seen under contract in nearly 5 years in this County.   Additionally, it has been suggested that 25% PUC is the mark of equilibrium in the Bay Area real estate where the market is no longer slanted in favor of the buyer or seller.