Q3 2022 Review
In a nutshell, the market is correcting. A combination of rising interest rates, lower net worths for many and uncertainty in the markets are the culprits. With the exception of Montecito, inventory levels remain low across the board. In spite of this, buyers are approaching the buying process more cautiously, watching & waiting to see what the market is going to do, leaving some well-priced listings with longer wait times before they go under contract. At the same time, certain properties, mostly those in highly desirable locations with ocean views or other special features, remain in high demand and continue to sell with multiple offers.
At a glance, the median sale price for single family residences in all areas (excluding Montecito & Hope Ranch) is up 15.2% year to date but down 7.2% from Q1 of this year. For Montecito, the figures are similar with the median sale price year to date up 10.9% but down 2.2% from Q1 2022. The condo market faired the best year to date with the median sale price up 18.9% and up 10% compared with Q1 2022.
Inventory levels, as mentioned, remain low with only 2 months, 8 days of inventory for Homes/PUDs in all (excluding Montecito & Hope Ranch); and 2 months, 28 days for condominiums. The exception is Montecito where the months of inventory has risen considerably to 9 months, 8 days. Depending on the number of sales, this number has been vacillating between 7-9 months, indicating a seller’s market. Remember, a balanced market which favors neither the buyer nor the seller is 6 months of inventory.
Trying to time the real estate market is an enormously difficult and complex thing to do because of how interconnected our economy is with those of other countries around the world. The sheer number of eventualities is difficult if not impossible to predict for even the most sophisticated pundits! After 32 years of being in the business, what I have found works best is when buyers and sellers take the time to get very clear about their purpose – or motivation – for making a change and trusting their authentic choices rather than falling into the herd mindset and/or betting on the market. There’s a lot to be said for both trusting yourself and the input you receive from your trusted advisors. The key and beauty is in balancing the two!
See the tables below for our Q3 Statistics:
