3rd
Quarter 2010
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
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.
Birnam Wood
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.
Looking Forward
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.
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