Rates Dip, Buyers Stir: A Seasonal Shift in SLV Real Estate

The MountainEar Real Estate Update

By MaryBeth McLaughlin

If you’ve lived in the Santa Cruz Mountains long enough, you know we aren’t the only ones who tune in to the rhythms of the seasons — the squirrels do it, too. And this month, our flannel-clad mascot has one oversized ear tilted toward a sound we haven’t heard in a while: a market beginning to thaw.

After several quarters of high interest rates and quiet weekends, the slight reduction in rates this fall has coaxed more buyers out of hibernation. We’re not in a frenzy — and no one’s throwing acorns in the air just yet — but real signs of life are showing up in our local data.

A Noticeable Shift in Residential Inventory

Number of new land listings vs sold in Ben Lomond, Boulder Creek, Brookdale, Felton, and Lompico/Zayante over the past year.  

One of the clearest indicators is the month-over-month tightening of inventory across the five major SLV areas: Ben Lomond, Felton, Boulder Creek, Brookdale, and Lompico/Zayante.

• September: 121 active residential listings, 27 sold
• October: 99 active residential listings, 21 sold

That’s a more than 20% drop in active listings in a single month — unusually sharp for fall. And although sales slipped slightly, activity remains stronger than earlier in the year. If you peek at this month’s active-vs-sold chart, you’ll see the same story: fewer listings, steady buyer momentum, and a market warming just enough to pay attention.

With fewer choices, the homes that are priced well and prepared properly are getting traction. And it will be especially interesting to see how November finishes, with many buyers watching closely for how the December jobs report might influence the next rate adjustment.

What Types of Homes Are Actually Selling?

A few themes are emerging in the fall closings:

• Entry-level mountain homes in the $650K–$900K range continue to attract the most interest, especially from first-time buyers and those seeking quieter, greener living.

• Move-in-ready homes are outperforming heavy-fixers. With construction and permit costs still high, many buyers prefer homes where the roof, septic, deck work, or major systems have already been handled.

• Homes with bonus spaces — ADUs, studios, workshops, finished basements — continue to shine. Remote and hybrid work aren’t going anywhere; they’ve simply evolved.

What About Land?

The land market remains steady but selective. New listings have slowed, and monthly sales are modest, but usable acreage with decent access is still finding buyers. Parcels with clear septic pathways, water access, or existing infrastructure tend to go first, while steep or highly technical build sites move more slowly.

Seasonal Pause Ahead

As we move deeper into the holidays, some sellers are opting to temporarily withdraw listings, while others are preparing to relist in early 2026 — often hoping to catch a boost from any rate improvement tied to job-report data. Early spring is traditionally a strong period in the mountains, and this year may follow suit.

Whatever the next few months bring, the MountainEar will be listening — from the treetops, across the ridgelines, and through every whisper in the market.

MountainEar Tip of the Month

Once the rain really sets in, the forest floor turns into a slip-n-slide. Keep a bag of gravel in your trunk… your future self will thank you.