The most recent news is the local residential real estate market seems to be "heating up".  Local agents agree that inventory is diminishing rapidly and full-price offers are not unusual.

Could it be back to 1999-2000?

I don't think so... yet.  The fact remains, at least with Santa Cruz County and the coastal regions of Monterey County, that groth control and growth limitations make for a very difficult development environment.  In short, that means it's very hard to over-build the market demand in those areas. If Supply is limited (or restricted) and Demand is free-floatng, price will generally "ratchet" upward, reflecting the increases in Demand, but not the decreases.

At least, that has been the historical situation in the coastal areas within commute distance to "Silicon Valley".

Of course, communities like Carmel and Pebble Beach seem almost "Recession ProoF" at least from examining real estate prices. My theory is that it seems recession proof, because it IS recession proof. Most of the residents in those areas have assets and income that is not tied directly to business cycles.  What happens to housing prices in those areas?  Pretty much a constant increase over time.  Not as "peaky" as the areas closer in to Silicon Valley and in lower-priced areas, but more like a "Blue Chip" investment, in that they continue to increase modestly year in and year out.

The "C&I" (Commercial/Industrial) Property market, locally, has undergone some rapid changes over the past four years.  Communities like Monterey and Salinas were not hit as hard as areas closer in to Silicon Valley, such as San Jose, Santa Clara, Cupertino, Sunnyvale, and Mountain View.  Those areas had rents increase dramatically almost overnight and collapse almost as quickly.  Palo Alto and areas along the peninsula toward San Francisco were not hit as hard, but still felt the sting.  "Over the hill" in Santa Cruz ("Silicon Beach") there was price changes almost as dramatic.  Office rents in downtown Santa Cruz changed 36% in one year (2000) and office space was being developed and renovated to respond to the "new" Demand.  Before they could be completed, the "Boom" was gone and there is office space a-plenty available in downtown Santa Cruz.

Other areas of the County were not hit as hard as the downtown area, but like Silicon Valley, all areas felt it, just some worse than others.

That's all for now, folks!

I welcome any questions or comments you may have.