2nd Quarter 2017
Nationwide
Nationwide, the real estate market is booming. Consumer confidence is at a 16 year high, unemployment is low, and the stock market continues to set record highs. Despite limited selection, existing home sales started 2017 at the fastest pace in nearly a decade. Total Housing Inventory is about 6% lower than a year ago. That index has fallen for over 20 consecutive months. Limited supply combined with increased sales led to higher prices. The Median Existing Home Price is up about 7% compared to last year.
Despite a recent decline, mortgage interest rates are still substantially above where they were a year ago. Limited inventory, and weakening affordability (higher prices plus higher interest rates) will likely temper sales activity going forward in 2017, but prices should continue to climb.
South Coast
Activity was mixed along the South Coast during the first quarter of 2017. Increased inventory led to improved sales, but at lower prices. Total Active Listings rose a healthy 8% to 1042. The Number Sold followed a similar pattern, climbing 6% to 349 sales. However, Average Sale Price slipped 12% to $1,354,567 and Median Sale Price declined 6% to $899,500. The increase in sales was not enough to overcome the drop in prices, as Total Sold Volume fell 7% to $472,743,848. On average, properties sold for 94% of their las asking price a decline of 1% compared to the same time last year.
Montecito
The first quarter of 2017 saw inventory levels rise in Montecito, as Total Active Listings jumped 9% to 233. Despite improved selection, sales were sluggish, as the much-needed rain hampered showing activity. The Number Sold fell 39% as only 35 properties closed during the first quarter. The largest sale was along Butterfly Beach 1127 Hill Road for $12,500,000. Prices also declined, as Average Sale Price dropped 13% to $3,482,228 and Median Sale Price slid 17% to $2,750,250. The combination of fewer sales and lower prices led to a decline of 47% in overall Sold Volume to $121,877,955. On average, properties sold for 91% of their last asking price 3% less than the same time last year.
Despite the somewhat discouraging numbers, there is great news on the horizon! Effective immediately, Montecito Water District has suspended penalties for excessive water consumption. This should have a significant positive impact on our real estate values. I expect both sales and prices in Montecito to rebound during the second quarter.
Birnam Wood Golf Club
The first quarter of 2017 brought improved selection to Birnam Wood Golf Club, as 2129 Forge Road ($4,950,000); 533 Las Fuentes ($3,975,000); and 534 Las Fuentes ($5,850,000) hit the MLS.
There were two closed sales during the first quarter: 2000 Sandy Place ($5,600,000); and 2159 Boundary Drive ($6,700,000). Both properties sold before going in to the MLS.
San Roque
San Roque was the only area along the South Coast where inventory levels declined during the first quarter of 2017. MLS Area 15 saw Total Active Listings decline 10% to 230 properties. Despite the decline in housing choices, the Number Sold rose 8% to 86. Median Sale Price was relatively unchanged at $1,108,000. Average Sale Price posted a healthy 8% increase to $1,354,381. Overall, Sold Volume climbed an impressive 17% to $116,475,076. On average, properties in Area 15 sold for 96% of their last asking price that is unchanged from a year ago.
Upper East
The Upper East was the only area along the South Coast where inventory levels declined during the first quarter of 2017. MLS Area 15 saw Total Active Listings decline 10% to 230 properties. Despite the decline in housing choices, the Number Sold rose 8% to 86. Median Sale Price was relatively unchanged at $1,108,000. Average Sale Price posted a healthy 8% increase to $1,354,381. Overall, Sold Volume climbed an impressive 17% to $116,475,076. On average, properties in Area 15 sold for 96% of their last asking price that is unchanged from a year ago.
Mesa
The Mesa saw inventory levels rise a healthy 7% as Total Active Listings in MLS Area 20 reached 190. Sales improved slightly as the Number Sold increased 1% to 66. Despite the relatively strong sales activity, prices fell. Median Sale Price slid 16% to $815,000, and Average Sale Price dropped 9% to $985,165. Overall, Sold Volume declined 7% to $65,020,920. Properties in Area 20 sold, on average, for 97% of their last list price that is a decline of 1% from last year.
Samarkand
Samarkand saw inventory levels rise a healthy 7% as Total Active Listings in MLS Area 20 reached 190. Sales improved slightly as the Number Sold increased 1% to 66. Despite the relatively strong sales activity, prices fell. Median Sale Price slid 16% to $815,000, and Average Sale Price dropped 9% to $985,165. Overall, Sold Volume declined 7% to $65,020,920. Properties in Area 20 sold, on average, for 97% of their last list price that is a decline of 1% from last year.
Santa Barbara/Goleta North
The results during the first quarter of 2017 were mostly positive for the areas in the Santa Barbara Foothills, and parts of North Goleta included in MLS Area 35. Inventory levels increased as Total Active Listings rose 9% to 133. Better selection led to improved sales as the Number Sold bumped up 5% to 57. Median Sale Price declined 6% to $704,000, but Average Sale Price soared 21% to $888,169. Overall, Sold Volume skyrocketed 27% to $50,625,650. Properties in Area 35 sold, on average, for 97% of their last list price a decline of 1% from last year.
Hope Ranch
Hope Ranch enjoyed an increase in both inventory of homes offered for sale, and sales. Total Active Listings rose 79% to 43 properties. The Number Sold more than doubled, with 9 homes selling in the first quarter. Despite the improved sales, prices were soft. Average Sale Price dropped to $3,094,611 and Median Sale Price fell to $2,742,500. Overall, Sold Volume increased 31% to $27,851,500. On average, properties in Hope Ranch sold for 94% of their last list price an increase of 6% compared to last year.
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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