Highs and Lows of Recent Sales
Let's kick things off with the highest and lowest sales in the latest market update. The highest sale was an impressive $21,500,000 for 3345 Padaro Lane. This ocean-front property consists of two, beautifully maintained mid-century homes with huge views of the pacific ocean.
On the other end of the spectrum, the lowest sale was $555,000 for 43 Dearborn Pl, Unit 52, a 1 bedroom, 1 bathroom condo in Goleta.
Sales Trends and Cash Transactions
The market has seen an increase in sales activity with a total of 120 sales in May. This reflects a 15% increase from last year and an additional 9 sales from the previous month. Breaking this down:
- Single Family Residences (SFR): 85 sales, showing a strong 27% increase from last year.
- Condominiums: 35 sales, slightly down by 5% compared to last year.
Notably, 39% of these transactions were cash deals, underscoring the competitive nature of the market. For buyers using financing, this highlights the importance of working with a reputable lender and having a solid strategy to compete against cash offers.
Days on Market and Median Sales Prices
The days on market remained steady, with single-family homes averaging 32 days and condos at 23 days. This quick turnover reflects the high demand for well-priced properties.
Median sales prices continue to be strong:
- Single Family Residences (SFR): $2.6M.
- Condominiums: $929,000.
Inventory Trends
Inventory levels have shown a slight increase, now at 2.6%, up from 2% in January. This indicates a gradual rise in the number of properties available for sale, which could explain why today’s buyers are more discerning. However, this figure is still well below the 6-month threshold typically considered indicative of a balanced market.
What This Means for Buyers and Sellers
- For Buyers: The increase in inventory provides more options, allowing buyers to be more selective. Despite this, the current inventory level still reflects a competitive seller's market, meaning buyers need to act swiftly and decisively.
- For Sellers: Even with the rise in inventory, sellers continue to have the upper hand due to the still-low supply relative to demand. Properly priced homes are likely to attract significant interest and competitive offers.
Whether you're buying, selling, or simply observing, understanding these trends is crucial for navigating this competitive landscape. If you have any questions or need personalized advice, don't hesitate to reach out. We're here to help you succeed in the real estate market.
