Scotts Valley, CA housing market

What this means

• Valuation. Prices are 24% above what local incomes have historically supported (this area's pre-2020 price-to-income ratio).
• Prices. Home values are up 2.6% over the past year (U.S.: +1.2%).
• Supply. There are 16% more homes for sale than the 2017-19 norm and falling (−21% vs. a year ago), so buyers have more to choose from than before the pandemic.
• Negotiating. Buyer leverage is moderate (53/100; U.S.: 54): homes sell for about 1.1% below their final list price; 33% of listings had a price cut (U.S.: 26%).
• Affordability. A mortgage on the typical home takes 61% of the median household income (U.S.: 35%); it takes about $294k a year to keep the payment at 30% of gross pay. That includes about $2,270 a year for home insurance (U.S.: $1,790).
• Buy vs. rent. Buying costs about $3,483/mo more than renting a typical home (mortgage payment vs. typical rent).
• Disaster risk. FEMA expects about $428 a year in natural-disaster damage per $100k of building value (U.S.: $155), mostly from flooding. Flood isn't covered by standard homeowners insurance.
• Outlook. Leaning up: likely −6% to +11% over the next 12 months (72% chance of a rise).

Next 12 months

Leaning up

Prices are more likely to rise than fall over the next year. Likely change: −5.8% to +10.5% (80% range; middle estimate +3.5%), chance of a rise 72%, of a 5%+ drop 11%.

HouseVane's model, refit every month on local market signals and national ones, trained only on data known at the time. How accurate it has been.