3rd Quarter 2017
Nationwide
In most places across the country, the real estate market is going strong. Statistically, it has all the elements of a classic Sellers’ Market: housing inventory is about 8% lower than a year ago; the median days a home is on the market is at an all-time low of under 30 days; and, the Median Sale Price hit an all-time high during the second quarter of 2017. According to the chief economist for the National Association of Realtors, “Buyer interest is solid, but there is just not enough supply to satisfy demand”. This strong demand, fueled in part by low interest rates and a strong job market, will continue to push up prices until inventory levels improve.
South Coast
The first half of 2017 showed healthy signs of improvement along the South Coast. Unlike most of the country, inventory levels rose locally, as Active Listings increased 2% to 1868. The Number Sold climbed 8% to 920 properties. Average Sale Price inched up 2% to $1,470,181, and Median Sale Price jumped 6% to $985,500. Overall, Sold Volume enjoyed a 10% increase to $1,352,566,234. On average, properties sold for 96% of their last list price – exactly the same as a year ago.
Montecito
I ended my last newsletter with the statement “I expect both sales and prices in Montecito to rebound during the second quarter”. I am very happy to report that both sales and prices posted healthy improvements during the second quarter of 2017. Selection improved, as Active Listings rose 8% to 298. The Number Sold skyrocketed 20% to 66 properties. Average Sale Price inched up 1% to $3,513,938, and Median Sale Price shot up 18% to $2,950,000. Overall, Sold Volume rose an impressive 22% to $231,919,972. On average, Montecito properties sold for 93% of their last list price – a decline of 1% compared to last year. The largest sale in Montecito during the second quarter was 985 Hot Springs Road (formerly owned by both Kenny Loggins and Jeff Bridges) for $15,925,000.
I expect the strong momentum of the second quarter to continue into the third quarter for the Montecito market.
Birnam Wood Golf Club
Similar to last year, there are presently only three MLS Active Listings in Birnam Wood: 2129 Forge Road - $4,485,000; 2085 Birnam Wood Drive - $5,650,000; and, 534 Las Fuentes Drive - $5,850,000. 511 Las Fuentes Drive, listed at $5,200,000 is a Pending Sale. 533 Las Fuentes Drive was the only sale through the MLS during the second quarter of 2017 – it sold for $3,645,000.
San Roque
Activity in San Roque (MLS Area 15) was very similar to the broad trends experienced nationwide during the first half of 2017: inventory levels declined while prices increased. Active Listings slid 7% to 451 properties. The Number Sold was identical at 239. Average Sale Price jumped 8% to $1,403,551, and Median Sale Price climbed 6% to $1,200,000. Overall, Sold Volume improved 8% to $335,448,721. On average, properties in San Roque sold for 97% of their last list price – exactly the same as a year ago.
Upper East
Activity in the Upper East (MLS Area 15) was very similar to the broad trends experienced nationwide during the first half of 2017: inventory levels declined while prices increased. Total Active Listings slid 7% to 451 properties. The Number Sold was identical at 239. Average Sale Price jumped 8% to $1,403,551, and Median Sale Price climbed 6% to $1,200,000. Overall, Sold Volume improved 8% to $335,448,721. On average, properties in the Upper East sold for 97% of their last list price – exactly the same as a year ago.
Mesa
Inventory levels were almost unchanged on the Mesa (MLS Area 20) during the first half of 2017, at 327 properties. Sales skyrocketed, as the Number Sold soared 17% to 176. Despite the strong rise in sales, prices were almost unchanged. Average Sale Price increased less than 1% to $1,075,311, and Median Sale Price inched up 1% to $927,500. Thanks to improved sales, Sold Volume rose 18% to $189,254,787. On average, properties on the Mesa sold for 98% of their last list price.
Samarkand
Inventory levels were almost unchanged in Samarkand (MLS Area 20) during the first half of 2017, at 327 properties. Sales skyrocketed, as the Number Sold soared 17% to 176. Despite the strong rise in sales, prices were almost unchanged. Average Sale Price increased less than 1% to $1,075,311, and Median Sale Price inched up 1% to $927,500. Thanks to improved sales, Sold Volume rose 18% to $189,254,787. On average, properties in Samarkand sold for 98% of their last list price.
Santa Barbara/Goleta North
Activity in the Santa Barbara Foothills and Goleta North (MLS Area 35) was strong during the first half of 2017. Active Listings rose 8% to 260 properties. The Number Sold skyrocketed 15% to 162. Average Sale Price jumped 25% to $1,034,327, and Median Sale Price climbed 7% to $830,000. Thanks to the strong combination of increased sales and higher prices, Sold Volume improved 45% to $167,561,041. On average, properties in MLS Area 35 sold for 95% of their last list price – a decline of 3% compared to a year ago.
Hope Ranch
Hope Ranch experienced a tremendous increase in inventory levels, and sales during the first half of 2017. Active Listings rose 40% to 66 properties. Improved selection let to a 76% jump in the Number Sold, as 23 properties changed hands. Despite robust sales, prices were soft. Average Sale Price slid 21% to $2,727,495, and Median Sale Price fell almost 9% to $2,650,000. Overall, Sold Volume improved 39% to $62,732,400. On average, properties in Hope Ranch sold for 94% of their last list price – an improvement of 4% compared to a year ago.
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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