Covid-Crazy Home Sales, By Jondi Gumz

COMMUNITY NEWS COVID-Crazy Home Sales

By Jondi Gumz

Is everyone who sells their home in Santa Cruz County as the COVID-19 pandemic wanes a millionaire? With seven out of 10 homes sold in April for more than $1 million, it feels that way.

Home prices have been hot for months, with a median price touching and surpassing $1 million, and in April, the median – the midpoint of what sold – was $1,281,000 – a new record, according to Gary Gangnes of Real Options Realty, who tracks the numbers.

Of the 205 sales, 143 sold for $1 million or more– 70 percent, the most ever.

A pattern of bidding more than the list price, seen in March, escalated: • 60% sold for more than $50,000 over asking price. • 43% sold for more than $100,000 over asking price. • 17% sold for more than $200,000 over asking price.

A home in Live Oak priced at $999,000 attracted 31 offers, 13 being all-cash, according to broker Datta Khalsa, leaving 30 would-be buyers searching.

The reasons, same as in March, are low interest rates, about 3 percent, and rising prices motivating work-at-home Silicon Valley tech employees to buy their new home — and office — here in Santa Cruz County, where they are closer to the beach and redwoods.

Fewer people are willing to sell –once you sell, can you find another home? -- so listings as of the first week of May were at an all-time low – 311 – compared to the 25-year average of 792. With 125 listings in escrow, only 186 are active, hardly enough to meet the demand from people who tried to buy and lost out to a lot of people putting in higher bids.

Gangnes sees these conditions as temporary but I’m not so sure.

Longtime agent Tom Brezsny at Sereno concludes this crazy market is a symptom of how the coronavirus has changed the world, a “let’s live in the moment” call to action.

After more than a year of life crimped to knock out the COVID-19 pandemic, which affected 16,169 people locally, took 206 lives, and Santa Cruz County is in the Yellow Tier — the fewest restrictions — and the governor promises the state will “open up” on June 15.

What does that mean, exactly? For one, state health officials will end weekend and holiday COVID-19 updates.

The county is closing its Wednesday mass vaccination clinic at the county fairgrounds, switching to a strategy of smaller no-appointment needed pop-up vaccination clinics.

Some business owners are more optimistic about the future, like Zach Davis and Kendra Baker, who announced they will open The Penny Ice Creamery this summer in The Hangar, the new building built by Corbett Wright and Rob Stuart behind the drive-through Starbucks on Mount Hermon Road.

Bob Slawinski, owner of the Green Hills Event Center in Scotts Valley, invested in improved ventilation for COVID safety and hopes to book gatherings.

Scotts Valley is bringing back the 4th of July parade in Scotts Valley, organized by City Council member Donna Lind. She needs volunteers, and artists who apply to participate by June 15 get a discount on the fee. are hopeful while waiting for guidance on events of that size, but Felton Music Hall, the Brookdale Lodge and Michael’s on Main are open and presenting live music.

The Santa Cruz Museum of Art and History hosted an in-person Memorial Day remembrance with a self-guided walkthrough at Evergreen Cemetery replacing a ceremony where hundreds of attendees sat close together for an hour.

Big Job Spurt

With 15,889 recovered COVID-19 cases, only 74 active cases, 136,000 negative test results and 307,000 vaccinations, the pandemic outlook in Santa Cruz County is improving big-time with businesses adding 2,700 jobs between mid-March and mid-April, boosting the total to 98,600.

Agriculture added 1,600 jobs and hospitality — food service and hotels — added 600. Both sectors were hard hit by COVID.

The unemployment rate dropped from 8.1 percent to 7.7 percent in April, with 3,000 people taking themselves out of the workforce — and 10,000 remain out of work even though everyone from Penny Ice Creamery to CVS is hiring, with McDonald’s on Ocean Street in Santa Cruz offering $15 an hour.

Moms were still at home overseeing schooling for their kids and the extra $300 a week in jobless benefits until Sept. 6 from American Rescue Plan kept some out of the work force.

Santa Cruz County, with 1.3 cases per 100,000, is one of 15 in the Yellow Tier, while Monterey County, with 1.9 cases per 100,000, remains one of 35 in the Orange Tier and must post a case rate below 2 for a second week to join Santa Cruz County.

The Yellow Tier allows 50% capacity at restaurants, gyms, saunas, dance and yoga studios, wineries, breweries and bowling alleys and larger attendance at outdoor events such as school graduations.

Test positivity was .5 percent in Santa Cruz County, below the 2 percent the Yellow Tier requires.

Research from 280 nursing homes in 21 states found vaccines protect residents -- only 1 percent of residents tested positive for the virus within two weeks after their second dose.

Restaurant Money Gone

Restaurants rushed the $28.6 billion Restaurant Revitalization Fund created by the American Rescue Plan and the Small Business Administration stopped taking applications May 24 after three weeks.

“COVID Update” page 10

A Crush Covid poster created by local volunteers attracts attention at the Scotts Valley Chamber of Commerce office.