Despite challenging economic conditions, local real estate experienced many positive results in the second quarter of 2010. It appears that the worst is behind us, and that we are beginning a long road to recovery. Compared to the same time period last year, the total number of active listings along the South Coast remained virtually unchanged at 1716. Median prices increased 9% to $769,500 and average prices rose 13% to $1,229,131. The number of sales climbed 19% to 390, and overall sales volume grew by 35% to $479,360,912.
Montecito posted some very impressive gains, as the availability and attractiveness of jumbo financing improved dramatically. Sales increased 27% to 42, and sales volume spiked 47% to $163,558,571. Median prices declined slightly to $2,225,000, while average prices jumped 15% to $3,894,251.
Inventory levels in Birnam Wood are down considerably compared to last year. There are currently five Birnam Wood properties available in the MLS, ranging in price from $2,395,000 to $3,749,000. There have been four closed sales in 2010, ranging in price from $1,525,000 to $3,000,000.
The challenges for real estate continue to be:
1. Unemployment – no meaningful recovery is possible without a dramatic reduction in both unemployment and underemployment – people need jobs to be able to afford to buy a home or keep their existing one;
2. Foreclosures – there is still a tremendous number (millions) of potential foreclosures nationwide that have yet to hit the market;
3. The Overall Economy – the stock market slid considerably during the 2nd quarter, and the Dow is currently around 10,000. The fate of real estate and the overall economy are intertwined- both need each other for a successful recovery.
P.S. Despite difficult market conditions, properties are still selling. If you would like to sell your property, call me at (805) 565-4896 to discuss the personalized marketing and advertising I can provide to get your property sold! All calls will be confidential.