MARKET PULSE
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It's been an interesting few months - we're up; we're down. We ebb; we flow...no singular direction in the market.
Interest rates were dropping, and then they weren't. The Fed lowered the Fed Funds Rate and mortgage rates went up...but not to where they were when the year began. Rates are lower now than the first six months of the year.
Currently, inventory is up - up 19%, but we were up 60% in the Spring. The pace of inventory growth has slowed. We remain in a Seller's market, but Sellers are having to be realistic with their pricing. Buyers are finding opportunities to negotiate.
Sales for June and August were down, but July was dramatically up. Interestingly, the drop in August was due to condo sales; Single Family Home (SFH) sales were up 10% for the month.
September sales were up 10% over last year to 113 total sales. SFH and condos sales were both up. Monthly median sales price for September was up slightly in condos and down a little in single family
For the year total sales are up 10%. The combined median sales price , although down for September, is up 6%.
We seem to be in a period of flux. No singular long-term market direction.
If there is a consistent theme this year, it's buyers are patient, and value matters. They will pay up for something "all done," but they aren't interested in setting a new highwater mark for the neighborhood. Buyers have to see value in the price and will command a discount for dated or tired properties.
The 93109 zip code, largely the Mesa, remains in high demand but not everything sells quickly. You can overprice. Price matters and value is important.
The luxury end of the market. largely Montecito, is softer this year, yet we've seen more sales over $20M than we see in a typical year. Properties are staying on the market longer. Price adjustments and sales below list price are common. Buyers are specific in what they want and what they are willing to pay for it.
For 2025 there's no urgency on the part of the buyers.
Sellers are having to adjust their expectations and decide if they really want to sell.