2nd Quarter 2016
Nationwide
Nationwide, the real estate market has continued to benefit from historically low interest rates, and solid job growth. In most parts of the country, housing demand has exceeded the relatively tight supply of existing homes, and construction of new homes continues to lag behind demand. The result has been home prices increasing faster than wages – a condition that restricts transactions. Sales of existing homes fell 7.1% last month, while prices rose 4.4%.
Santa Barbara - South Coast
Along the South Coast, inventory levels remained relatively constant, compared to the first quarter of 2015, as Total Active Listings inched down 1% to 1066. The Number Sold declined in every area except Montecito, dropping 18% to 340. Similarly, Sold Volume slid 22% to $538,346,954. Average Sale Price dipped 5% to $1,583,373, and Median Sale Price climbed 9% to $972,500. On average, properties sold for 96% of their last listed price.
Montecito
Montecito was by far the strongest segment of the market during the first quarter of 2016. Inventory levels rose a healthy 14%, as Total Active Listings increased to 255. Improved inventory allowed a similar increase in the Number Sold of 12% to 63 properties. There was a slight decline of 4% in Average Sale Price to $4,055,923. However, Median Sale Price jumped 18% to $3,325,000. Sold Volume rose 7% to $255,523,175. On average, properties sold of 94% of their last listed price.
I expect the strong Montecito market to continue into the second quarter of 2016.
Birnam Wood
Although demand for Birnam Wood continues to be strong, there is very little inventory available. There are currently only two properties available in Birnam Wood in the MLS: 2020 Birnam Wood Drive, $4,950,000; and 511 Las Fuentas Drive, $5,950,000. As a result of the low inventory, there were only two sales during the first quarter: 1175 Fife Lane, $4,300,000; and 1160 Fife Lane, $5,895,000.
Mesa
On the Mesa, activity was mixed during the first quarter of 2016. Inventory levels in MLS Area 20 fell slightly, as Total Active Listings declined 3% to 188. However, the Number Sold dropped at a much higher rate, slipping 16% to 70 properties. Average Sale Price was relatively stable, dipping 2% to $1,112,882, but Median Sale Price skyrocketed 21% to $989,750. Overall, Sold Volume declined 18% to $77,901,800. On average, properties sold for 98% of their last listed price.
Despite a mediocre first quarter, I expect activity for the Mesa to rebound during the second quarter of 2016. Look for an increase in sales and strong prices.
San Roque
Although inventory levels in San Roque rose a healthy 7%, as Total Active Listings climbed to 285, the Number Sold fell 24% to 79 properties during the first quarter of 2016. Median Sale Price inched down 2% to $1,105,000, while Average Sale Price slipped 6% to $1,250,976. Overall, Sold Volume dropped 29% to $98,827,135. On average, properties sold for 96% of their last listed price.
Despite a mediocre first quarter, I expect activity for San Roque to rebound during the second quarter of 2016. Look for an increase in sales and strong prices.
Upper East
Although inventory levels in the Upper East rose a healthy 7%, as Total Active Listings climbed to 285, the Number Sold fell 24% to 79 properties during the first quarter of 2016. Median Sale Price inched down 2% to $1,105,000, while Average Sale Price slipped 6% to $1,250,976. Overall, Sold Volume dropped 29% to $98,827,135. On average, properties sold for 96% of their last listed price.
Despite a mediocre first quarter, I expect activity for the Upper East to rebound during the second quarter of 2016. Look for an increase in sales and strong prices.
Samarkand
In Samarkand, activity was mixed during the first quarter of 2016. Inventory levels in MLS Area 20 fell slightly, as Total Active Listings declined 3% to 188. However, the Number Sold dropped at a much higher rate, slipping 16% to 70 properties. Average Sale Price was relatively stable, dipping 2% to $1,112,882, but Median Sale Price skyrocketed 21% to $989,750. Overall, Sold Volume declined 18% to $77,901,800. On average, properties sold for 98% of their last listed price.
Despite a mediocre first quarter, I expect activity for Samarkand to rebound during the second quarter of 2016. Look for an increase in sales and strong prices.
Hope Ranch
Inventory levels continued to decline in Hope Ranch during the first quarter of 2016, as Total Active Listings dropped 22% to 27 properties. The Number Sold fell 66% - there were only four properties sold in Hope Ranch during the first three months. Because of the low number of sales, the importance/value of the following statistics is limited: Average Sale Price rose 36% to 5,301,250, while Median Sale Price climbed 108% to 5,710,000. Overall, Sold Volume slipped 54% to $21,205,000. On average, properties sold for 88% of their last listed price.
Santa Barbara/Goleta North
Inventory levels dropped more in MLS Area 35 during the first quarter of 2016, than any other area along the South Coast. Total Active Listings fell 18% to 123 properties. The lack of inventory led to a decline of 14% in the Number Sold, to only 54 properties. Average Sale Price slid 6% to $733,198. However, Median Sale Price rose 3% to $734,000. Overall, Sold Volume dropped 20% to $39,592,738. On average, properties sold for 98% of their last listed price.
Despite a mediocre first quarter, I expect activity for Area 35 to rebound the second quarter of 2016. Look for an increase in sales and strong prices.
Sincerely,
Daniel Encell
Director, Estates Division
Berkshire Hathaway HomeServices
(805) 565-4896
If you are considering selling, you need a strong agent with precise market knowledge, and superior marketing, advertising, and negotiation skills. In 27 years, I have sold over $1 billion in local real estate. Creative marketing, extensive advertising, and good old fashioned hard work get the best results in any market! If you need real estate assistance, I can help you. Please call me at (805) 565-4896 or email me at danencell@aol.com. All calls will be confidential.
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