There is a lot going on in the world today, but none of it appears to be affecting the real estate market. It has been moving along steadily with no real apparent significant change.
There have been roughly 6% more sales of houses this year than last year. It is not a record breaker, but it does show a fairly active market.
There have been more condos sold this year than last, up by about 3%. This may seem low but the 3% increase represents primarily re-sales, not new condo sales. There have been over 100 brand new condo sales that are not recorded through the MLS. If these were included, it would probably exceed our 16 year high in 2015.
The current median price is 5.6% higher than what it was last year at this time. This indicates that prices continue to increase slowly. It is still flirting with the all-time highs back in 2007.
The following chart breaks down the year-to-date information by area. This gives a better understanding of how each area is doing. It should be noted that the Hope Ranch area consists of less than 1,000 properties, so the numbers will be much smaller there. Also, Carp/Summerland have fewer properties than the other areas.
(Note: the area indicated as “Goleta” encompasses the city of Goleta along with the unincorporated area between Goleta and Santa Barbara.)
The Months of Inventory (MOI) is an interesting number to watch. This indicates roughly how long it would take to sell all of the current active listings without adding additional inventory. The overall months of inventory for single-family residences is currently at 3.7 months. This reflects that we are in that active, steady market.
As indicated earlier, the real estate market continues on a steady path. A healthy number of properties are selling with a median that is going up gradually. The economy is still on the upswing and makes people more comfortable which can only be good for the real estate market. There is talk of another quarter point of the Fed Funds rate going up, which may slow things down just a bit. Barring any major catastrophies, the market should stay strong!
Article courtesy of Village Properties and written by Carol Kruckenberg