Capitola real estate update

October 21, 2009 by
Filed under: California, Home Searches 

capitola-mAs a part of the greater Santa Cruz area, most Capitola real estate follows similar trends and patterns in relation to its much larger counterpart.  However, real estate in Capitola generally follows the changes and adjustments noticed as a part of the San Francisco Bay Area.  Eric Young’s article in the San Francisco Business Times on September 16, 2009, claimed that despite the Bay Area’s competitive advantages, the global recession that has hit almost every housing market around the world would continue to “inflict pain on the region into next year.”  In fact, Young’s article points to late 2009 as the peak of unemployment in the region.  Even scarier, “commercial real estate is in serious decline across all areas for all types of space: office, retail and industrial. Rents continue to fall as vacancy rates rise and net absorption of space is negative.”  Despite these negative figures, the article brings hope to those desperately seeking the end of this especially harmful time of recession.

The San Francisco Examiner recently released figures regarding the Bay Area’s housing market’s improvement for buyers.  The article published on September 17, 2009, states that “Bay Area real estate market shows a decline in home prices for August after a steady increase since April of this year.”  Capitola homes for sale suffered a similar fate, according to the research.  To make things worse, international investment in Capitola and other Bay Area communities has decreased significantly as well, reported Hibah Yousuf of CNNMoney.com.  While U.K. and Canada remain steady shareholders in the real estate market, many other countries reduced their ownership in the area.

According to an article written by Jondi Gumz in the Santa Cruz Sentinel on September 19, 2008, the median for a single-family home was $582,000, down from $770,000 in August 2007.  In the previous year, according to Scotts Valley real estate agent Bob Henkel, real estate in Santa Cruz experienced significant foreclosure rates due to “very creative loans that should never have been allowed.”  Much of the real estate in Capitola followed this trend from Santa Cruz due to city’s proximity to the core of the much larger metropolitan area.

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