The Pasatiempo real estate market, along with the rest of the Santa Cruz County, has fallen off substantially from its peak in 2007, although it has started to post a tentative recovery in recent months. A July 19, 2010 report from the Santa Cruz Sentinel noted one example of this new housing market: “Patricia Beckwith bought a three-bedroom house on a third of an acre in Aptos for $444,000 after waiting more than three years for prices to fall. “It felt like a miracle,” she said. “This is the house I’m going to live in for the rest of my life.” Beckwith, 46, an accountant, found a longtime homeowner ready to downsize. “She never refinanced,” Beckwith said. “She didn’t need to command an overinflated price.” Beckwith put 20 percent down, got 5.25 percent interest for 30 years, and qualified for an $8,000 federal tax credit, a $10,000 state tax credit and a tax credit through the Housing Authority of Santa Cruz County. She had been watching the local housing market since January 2007. That’s when the median home price in Santa Cruz County dropped to $702,250 after peaking in July at $775,000. How times have changed. Beckwith bought in June, which saw 149 home sales, down from 162 a year ago. The median, the midpoint of what sold, was $507,500…The median reflects the mix of sales: 49 percent under $500,000 and only 5 percent more than $1 million. About 44 percent involved bank-owned homes and “short sales,” where the lender accepts less than what is owed. Gangnes noted 38 percent were sold in Watsonville and San Lorenzo Valley. Those two areas, traditionally more affordable, have seen more foreclosures and plummeting prices.”
There is economic hope for Pasatiempo houses for sale and the rest of Santa Cruz County, however, as the primary source of county income, property taxes, may finally be stabilizing. According to a June 27, 2010 article from the Santa Cruz Sentinel, “Is there any hope things will get better? For a county that doesn't depend on businesses to carry the tax load, that means property tax revenue will continue to be the key to recovery. Hopefully, the situation regarding property assessments -- home valuations -- is getting better and the worst of the foreclosure/short-sale crisis is behind.”