The Santa Cruz, CA metro area housing market in February 2025 presents a dynamic landscape characterized by notable increases in both sales prices and inventory levels. The Median Sales Price has reached $1,050,000, marking a 6.6% increase year-over-year, while the Median List Price has surged by 30.6% to $1,299,000. This significant rise in list prices suggests a strong seller's market, with homeowners capitalizing on the increased demand.

Price Per Square Foot also reflects an upward trend, with the median Price Per Square Foot at $702.25, up 9.0% from the previous year. The Median List Price per square foot has similarly increased by 6.7% to $765.68, indicating a robust appreciation in property values across the region.

In terms of sales activity, the number of Homes Sold has risen modestly by 2.1% to 97 units. However, Pending Sales have experienced a substantial increase of 33.3%, reaching 140 units. This surge in Pending Sales suggests a strong pipeline of transactions that could further drive market activity in the coming months.

New Listings have increased by 16.5% to 162, contributing to a 31.5% rise in inventory, which now stands at 367 homes. This increase in inventory is accompanied by a significant 90.0% rise in Months of Supply, now at 3.80 months, indicating a more balanced market compared to the previous year.

The Median Days on Market have decreased by 6.0% to 53 days, suggesting that homes are selling slightly faster than last year. However, the average sale to list ratio has declined by 2.2% to 98.1%, and the percentage of Homes Sold above list price has dropped by 7.0% to 30.9%, indicating some moderation in buyer competition.

Price Drops have seen a slight increase of 0.7%, now at 18.3%, reflecting some adjustments in seller expectations. Meanwhile, the percentage of homes going off the market in two weeks has risen by 15.5% to 33.6%, highlighting the continued demand for well-priced properties.

Overall, the Santa Cruz housing market in February 2025 is characterized by rising prices and increased inventory, with strong demand driving Pending Sales and New Listings. While some indicators suggest a cooling in buyer competition, the market remains active and dynamic, offering opportunities for both buyers and sellers.