SWAT entered the home on West Beach Street around 9 p.m. Wednesday night, but authorities said they didn't locate the suspect.
Police are searching a Victorian home and a shed behind the property, but they still don't know if he lives there.
The last contact police said they had with him was 1 p.m., with information indicating he was there another two hours or so.
Police say they're preparing to move closer to the suspect in an attempt to coax him out of the home.
Watsonville police have the area in and around the 100 block of West Beach St. shut down for a standoff with a potential suspect in a recent shooting.
Police have now evacuated nearby homes and two SWAT teams are on scene.
Police say the suspect, 26-year-old Ramiro Castillo, is wanted for attempted murder. Officers believe he is linked to the shooting on June 3rd. That shooting happened on Grant St. near Marchant and Elm. Police responded to reports of a man shot while walking near some homes in the morning. The victim is in his 20's and was expected to survive.
Police are not sure if the suspect lives in the home that he is currently in or was just visiting someone. Officers also don't know if he is armed.
Police are asking people to avoid the area around the 100 block of West Beach St.
The area has been blocked off since just after 1 p.m. Wednesday afternoon.
At about 4:30 p.m. Central Coast News Reporter Ricardo Navarro said that Santa Clara and Santa Cruz County SWAT team members were called in.