Santa Cruz Real Estate Market 2025: Why Home Prices Were Flat and Why That’s Misleading

If you’ve heard that Santa Cruz home prices were flat to slightly rising in 2025, that statement is technically true, but it doesn’t reflect what actually happened across our county. Here is my take on the current Santa Cruz Real Estate market.

As a Santa Cruz Realtor working across coastal, mountain, and suburban communities, I’ve been closely tracking the data at a neighborhood level. I’m Jessica Wallace, a local Santa Cruz real estate expert, and I was recently quoted in a Lookout Santa Cruz article discussing inventory trends and buyer demand as we head into 2026.

You can read that article here:
👉 https://lookout.co/supply-of-santa-cruz-county-homes-for-sale-contracts-in-december-while-sales-stay-high-as-2026-begins/story

What the numbers show is not one market, but many very different markets moving in opposite directions.

Check our my recent video for a my quick take on the Santa Cruz Real Estate Market:

Santa Cruz County Home Prices: The Big Picture

Looking at Santa Cruz County as a whole from 2025 to 2026:

Median home price: unchanged at $1.3 million
Average home price: up about 2.1% to roughly $1.475 million

At first glance, that can feel contradictory. How can prices be flat and still rise?

Median vs. Average: Why This Matters

The median price represents what the typical buyer and seller experienced.
The average price is influenced by higher-end and luxury sales.

In a market like Santa Cruz where a small number of very expensive coastal homes can sell each year, the average price can rise even when most homes are not appreciating.

That’s why the median price is often the better indicator of what’s happening for everyday buyers and sellers.

Why “Flat” Doesn’t Tell the Whole Story

Santa Cruz County is incredibly diverse. We have:

Coastal neighborhoods
Mountain communities
Inland and suburban areas

Each of these responded differently to interest rates, insurance costs, and buyer demand in 2025. When you break the data down by area, the trends become much clearer.

Where Median Home Prices Declined

Several inland and mountain markets experienced real price softening in 2025:

Boulder Creek: median price down over 8%
San Lorenzo Valley (Boulder Creek, Felton, Ben Lomond): down more than 4%
Scotts Valley: median price down about 6%

Why Mountain Markets Were Hit Harder

These areas are facing rising ownership costs, including:

Significantly higher homeowners insurance
Increased expenses for tree work, septic systems, and maintenance
A smaller buyer pool willing to take on those long-term costs

As a result, mountain and inland homes are seeing more price sensitivity, even when they are well maintained.

Where Home Prices Increased

While much of the county softened, coastal Santa Cruz told a very different story.

Strongest Appreciation

95062 (Live Oak, Pleasure Point, Seabright):
Median home price up over 10%

This area continues to see strong demand due to:

Proximity to the ocean
Limited inventory
Lifestyle-driven buyers willing to pay a premium

Moderate Coastal Gains

Coastal Aptos / Rio del Mar: median price up nearly 3%
Westside Santa Cruz (95060): median price up over 5%

These increases are real but they are highly location-specific, not representative of Santa Cruz County as a whole.

How Inventory Affected Pricing

Inventory trends played a major role in these outcomes. As discussed in the Lookout Santa Cruz article where I was quoted, the supply of homes for sale contracted toward the end of the year, even while buyer activity remained strong.

That imbalance supported prices in highly desirable coastal areas, but it wasn’t enough to offset affordability pressures in mountain and inland communities.

What This Means for Sellers

Pricing in Santa Cruz right now needs to be hyper-local.

Coastal sellers with well-located, turnkey homes still have leverage
Mountain and inland sellers need to be realistic and strategic
Countywide averages are not reliable pricing tools for individual homes

Overpricing based on headlines, instead of neighborhood-specific data, is one of the main reasons we’re seeing longer days on market and price reductions.

What This Means for Buyers

Buyers have more negotiating power in:

Mountain communities
Inland neighborhoods
Homes with higher ongoing ownership costs or that need updating/remodeling

At the same time, competition remains strong in select coastal areas with limited inventory.

Knowing where the leverage is matters just as much as knowing interest rates.

The Bottom Line

Santa Cruz home prices didn’t surge and they didn’t crash, it was a pretty steady and ‘boring’ year.

Coastal neighborhoods gained value
Mountain communities softened
Countywide medians stayed flat because these trends offset each other

Understanding that nuance is critical if you’re buying, selling, or trying to understand what your home is really worth.

About Jessica Wallace

I’m Jessica Wallace, a Santa Cruz Realtor with deep local roots and experience across every part of Santa Cruz County from coastal luxury homes to mountain properties. I’m regularly quoted in local media, including Lookout Santa Cruz, and I specialize in helping clients understand how market data applies to their specific neighborhood, not just the headlines.

Ready to Talk About Your Home?

If you’re thinking about buying or selling and want an honest, hyper-local take on the Santa Cruz real estate market, I’m always happy to help.

Reach me, Jessica Wallace, at (831) 419-9345 or email yoursantacruzagent@gmail.com