A small community of only about 1,000 residents in the mountains of Santa Cruz County in northern California, the city of Felton is a middle-class census-designated place. Felton is a popular area because its home prices are lower than in many other areas of Santa Cruz County. The Felton real estate was hit in late 2008 at the onset of the downturn in the U.S. economy when the credit crisis began, and it saw homes values fall and foreclosures rise as residents struggled to stay in their now over-valued homes.
Since then, the market has been on a roller-coaster ride, with prices rising and falling with seemingly no logical explanation. In late 2009, prices seemed to stabilize, but the last month of the year saw the median price dip yet again. According to local realtor Jessica Wallace, the median price for homes sold in Felton throughout 2009 was $325,000, down from 2008′s figure of around $400,000. However, the yearly median improved from the beginning of the year; in February, the price was less than $250,000, and it hit its lowest point in May, at around $200,000. The end of the year saw four successive rises in median price, from July to November, before falling again in December to around $300,000 from $400,000-level figures in the previous months.
Some of the wacky sales prices of Felton homes for sale can be attributed to a large number of low-priced foreclosures. The Felton market saw a bright spot in sales volume, which totaled 95 for the year, up by nearly a third from 2008, when there were just 64 homes sold. August and September saw the highest numbers of sales activity, probably because buyers were scrambling to close on their homes before the government’s tax rebate program was set to expire in November. (It has since been extended.)