The Boulder Creek real estate market, part of the larger Santa Cruz County real estate housing market, continues to suffer from a generally lackluster economy. Despite a drop in the unemployment rate, the size of the workforce declined in August and remained well above the national rate. According to a September 18, 2010 report from the Santa Cruz Sentinel, “Santa Cruz County unemployment dipped in August to 11 percent, down from 11.3 percent in July, but up from a year ago, when it was 10.2 percent. The reason: not job growth, but a smaller labor force. The jobless rate remained steady nationwide at 9.5 percent and inched up to 12.4 percent in California. "Californians are continuing to suffer from slow job growth, and things will only improve when there is strong hiring in the private sector," Gov. Arnold Schwarzenegger said. Most private-sector industries in Santa Cruz County have a long way to go to recover jobs lost since last August. Real estate, rental and leasing are down from 1,400 jobs a year ago to 1,200. Membership at the Santa Cruz Association of Realtors is 1,227, down from 1,283 a year ago, according to executive director Kathy Hartman.”
This economic instability has been affecting Boulder Creek homes for sale for a while, as reported in an August 25, 2010 article from the Santa Cruz Sentinel. The piece, composed by Jondi Gumz, noted that “Homebuyers made themselves scarce in July, even though it's usually the biggest month of the year for sales. American Dream Realty, reports there were 145 single-family home sales in Santa Cruz County this July compared to 175 in July 2009. That's not a record low, but it's close. The record is 143 sales in July 2007, a month before the credit crisis exploded. July's median price was $510,000, down from $775,000 three years ago, but sales haven't taken off. Despite falling prices and record low interest rates, agents say prospective buyers are reluctant to commit, worried that foreclosures will bring the housing market down. About 49 percent of sales were for under $500,000; only 6 percent were over $1 million.”