The Watsonville real estate market, a portion of the larger Santa Cruz County housing market, saw a decline in the quantity of properties sold as well as a decrease in the median sales price of condominiums and negligible movement in the median sales price of single-family homes. According to a December 2010 report from the Santa Cruz Sentinel, there were only 119 single-family detached homes sold during November 2010, representing a decrease of approximately fifteen percent compared to November 2009. The median price of a single-family home in Santa Cruz County was $536,000, little changed compared to year-ago levels. For condominiums, the median price was $287,700, a decrease of more than $20,000 compared to $310,000 a year ago. In addition to a decline in median sales price, the quantity of condos sold fell to a mere 20, or a decrease of nearly fifty percent. The average prices of single-family homes and condominiums, as opposed to the median sales price, decreased and increased year-over-year, respectively. The average price of single-family homes was $572,298, compared to $619,160 a year ago, while that same figure was $364,087 for condominiums as opposed to $360,022 during November 2009.
The commercial sector of Santa Cruz real estate has suffered along with Santa Cruz and Watsonville homes for sale. According to a January 6, 2011 report from the Santa Cruz Sentinel, many small businesses and entrepreneurs in the Santa Cruz area were unable to secure lines of credit or start-up loans during the economic recession. This is largely the result of large lenders such as Bank of America and Wells Fargo proving hesitant to release credit during economically uncertain times. One major lender cut back on loans by well over eighty percent, while another slashed the number of loans by seventy-nine percent. Taken as a unit, the three largest lenders in California slashed the total number of small business loans statewide by sixty-four percent between 2007 and 2009. In addition to sparsely available credit, small businesses throughout Santa Cruz have been facing lower property values and declining sales for several months.