Altos’ Report on Watsonville Updated as of 3/27/22

Altos Research: MARKET STATUS AND KEY TRENDS of Existing Homes in Watsonville, CA, as of 3.27.23.

It is still a seller’s market, but not as red-hot as it was earlier in the year. The median home price in Watsonville is $1.5m ($681/sq ft), and there are currently 30 homes on the market, with an average of 118 days on the market.

There is a very limited number of homes on the market out of a total of 24,331 homes. At the current listing quantity and DOM rate, it would take 262 years to sell every house.

Altos Research: INVENTORY.

The number of homes for sale is slightly higher compared to 2020 during the COVID crisis. Using a 90-day average, there are 30 homes on the market. Using the past 7 days, there are 22 homes on the market.

Altos Research: DAYS ON MARKET.

It appears that the few remaining properties that are for sale are just not selling, hence the DOM is up. Using a 90-day average, the DOM is 118 days, and using the past 7-day average, it is 140 days.

Altos Research: MEDIAN LIST PRICE.

The MLS median price is $1.1m, and prices tend to peak between May and July. Median prices are influenced by the mix of homes for sale. Currently, prices are below their peak level of September 2021 but have risen in the recent past.

Altos Research: PRICE PER SQUARE FOOT.

The median price per square foot of homes on the market is $681. However, larger homes tend to have a lower price per square foot, so the mix of homes can influence the $/sf.

Altos Research: HOUSES WITH PRICE DECREASES.

Despite a larger number of homes for sale and increasing Days on Market, the percentage of homes that have had price reductions has surprisingly decreased to 37%, which is below pre-COVID levels in 2019.

Altos Research: MARKET SEGMENT PRICES AND SQUARE FEET.

The third market segment is comparable to the subject development property, with a median price of $840,000 and a square footage of 1,729, featuring 3 beds and 2 baths and being 59 years old.

86% of the area’s housing is 25+ years old, and very little new housing has been built in this community.

60% of the houses are owner-occupied, while 40% are rental properties.