Greetings and Happy 2013! The 4th quarter of 2012 finished strong, capping off an amazing year for local real estate. The Number of Sales (590) skyrocketed 50%, compared to the 4th quarter of 2011. Median Sales Price rose 6% to $665,000, while Average Sales Price jumped 23% to $1,071,061. Total Sales Volume climbed 84% to $631,926,182. All of this strong sales activity left us with a shortage of inventory, as Total Active Listings dropped 18%.
2012 in Review
For the first time in many years, we saw an increase in both Median and Average Sales Price along the South Coast, as rapid absorption of inventory led to stability and strength in our market. During 2012, Median Sales Price rose 2% to $670,000. Average Sales Price jumped 13%, and we are once again above $1 million, at $1,128,725. The Number of Sales climbed 40% to 2,024, while Total Active Listings declined 3%.
Montecito was responsible for the overwhelming majority of the increase in overall Sales Volume along the South Coast, as 93108 Sales Volume rose 98% (almost $450,000,000!) to $907,457,036. The Number of Sales (301) rose 60%. While Median Sales Price rose less than 1% to $1,800,000, Average Sales Price leaped 23% to $3,014,807. On average, properties sold for 90% of their last list price.
2012 was another good year for Birnam Wood sales, as thirteen properties sold, ranging from $1,525,000 to $5,000,000. The Median Sales Price was $2,650,000, and the Average Sales Price was $2,894,908. There are currently only five active MLS listings in Birnam Wood, ranging from $2,495,000 to $6,375,000.
Predictions for 2013
With interest rates at, or near, historic lows, and inventory levels rapidly declining, expect local prices to remain strong. The California Association of Realtors is expecting a 20% increase in Median Sales Price in California in 2013. The anticipated increase in property values should dramatically reduce the volume and impact of distress sales.
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