August is here!
July's numbers will be out in a couple of weeks, but second quarter
data shows there is change in our housing market.
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Weekly housing data shows active listings posted sizable gains in June and July for the first time this year. In a single week mid-June active listings jumped 23%, that is the largest weekly increase we've seen this year. Listings have more than doubled from the start of the year. We began the year with 97 Active listings for sale. Effective today we have 228 Active listings - homes, condos, and manfactured homes - for sale.
Interest Rates have been exceptionally volatile this year. We stared the year at 3.27%. Rates peaked at 6.28% Tuesday, June 14th but have since dropped back under 6%.
Today's rate was up 0.25% to 5.30%.
MortgageNewsDaily.com
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The old adage, the Proof Is In the Numbers
Median Sales Price: $1,827,000
Inventory Supply: 1.33 months
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So, how are we faring compared to 2021?
But May started to show the shift...
Days on Market is increasing.
Price Changes are increasing
2021 was the largest number of total sales the Santa Barbara market has ever experienced.
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Perhaps a better comparison of June Sales would be how we are doing compared to 2019 - the last full year of pre-pandemic "normal" sales activity:
We weren't saving weekly inventory data back then, but we know, generally, we had more inventory to work with. If I dug deep I could find some rough numbers but not like we track it now.
Did the pandemic pull a lot of future sales forward? Perhaps. With the dramatic increase in price, there were those who felt it was a great time to sell, and they did.
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Driving this year's buyer market sentiment:
Dramatic price acceleration over the last two years.
Rapid Increase in Interest Rates impacting affordability.
Negative Wealth Effect as stock & bond markets sell off
Market Volatility
Inflation
2022 sales are below 2019 sales.
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2Q 2022 vs. 2Q 2019
Total South County
Sales:
Down 22%
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Rather interesting, Montecito YTD total sales are up 39% from 2019 but dramatically down from 2021.
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Montecito Median Price through June: $4,937,500
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So where do we go from here?
If the trend continues, we have a market that is slowing down. Generally speaking, it appears prices have stopped going up. We are seeing more weekly price adjustments, and days on market are increasing. Properties priced well are selling quickly, but inventory is rising. If interest rates continue their upward trajectory, it will continue to dampen activity and adversely impact affordability - which is equivalent to downward pressure on price.
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214 South Voluntario Street, Unit A B & C
6 BD | 6 BA | 3 Detached Homes | $2,595,000
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3 Bed | 2 Bath | $2,600,000
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5 Bed | 4 Bath | $2,175,000
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Should You Renovate Your Home
Before Putting It on the Market?
There's a big difference between renovating a home and updating it. The former involves a more dramatic execution -knocking down walls or retiling an entire bathroom. Updating is making cosmetic changes such as painting a kitchen or replacing a light fixture. Renovating is, obviously, much more expensive and time-consuming than updating, and that's why many sellers resist it when they're listing their home. But before making any major renovations, it's a good idea to ask if the money you plan to spend can be recouped in the selling price.
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Amazing Landscaping Ideas to Create an Enchanting Outdoor Space
Thoughtful landscape design is the key to creating an outdoor oasis, whether you have a tiny courtyard in an urban area or a sprawling estate in the country. Read on for inspiration that will pave the way to better landscape design for every size and style.
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© Compass 2022 ¦ All Rights Reserved by Compass ¦ Made in NYC
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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