Santa Cruz's real estate market is experiencing a price correction, with values down 9.7% from last year. Home prices have decreased 7.4% in the past month. At the current pace, all available homes in Santa Cruz would sell out in just 1.7 months, indicating a continued supply shortage. Properties are selling within just 15 days on average, much faster than the historical norm of 39 days. A significant 42.1% of listings experienced price reductions, indicating sellers may be adjusting to market realities. Approximately 43.5% of homes sold above list price, indicating some competitive segments within the market. Affordability remains a significant challenge in the Santa Cruz market with the affordability index at 160.1. Based on current market indicators, home prices in Santa Cruz are projected to decrease by approximately 24.6% over the next month.