A Tale of Two Markets

For this month’s statistics, I analyzed the Santa Ynez Valley real estate market by price range.

Following the theme of last month’s blog, the low-end and lower-mid range of the market is very strong and considered a strong seller’s market*. The inventory is low and based on the number of properties entering into escrow we have from 1-3 months of inventory.

From the upper-middle range to the high-end of the market ($800,000+) it is considered to be a strong buyer’s market* with 13+ months of inventory, based on the current trend of property entering escrow compared to active listings.

Click here to view the year to date statistics (January 1st through October 31st) which support the above.

That being said, a property in any price range that is priced well will sell quickly, as there is quite a bit of pent-up demand. As a matter of fact in Santa Barbara multiple offers are occurring quite regularly. The Santa Ynez market closely follows the Santa Barbara market, so it is only a matter of time. In addition, the low end is the first to be affected by economic downturns and it is the first to recover. The recovery of the low-end will have a trickle-up affect to the higher-end over time.

*Guide:

0-3 months Sellers’ market

6-9 months Buyers’ market

6-9 months Buyers’ market

9-12 months weak market

There is quite a bit of positive economic news, but the issue of high unemployment tends to overshadow much of this. The following is a link for an informative and positive press release from the Federal Reserve: click here

With prices and interest rates at an all-time low and a good selection of inventory, especially in the mid to upper range, it is a “perfect storm” for buying.

Please feel free to contact me with any questions or if you would like any additional information.

Jenaé Johnson

Broker Associate

Mobile: 805.452.9812

Village Properties

Lic# 01308742