Real Estate February 19, 2013

Santa Barbara’s velocity increases

In December of last year I published the months of inventory or “market velocity” in Santa Barbara for six different price ranges. This is the amount of time it would take all of the homes on the market to sell at the current sales pace. The calculation is made by dividing the number of homes now available by the number of homes that have gone under contract over the past month. December of last year actually saw more closings in South Santa Barbara County than any month prior dating back to August 2005.

The months of inventory or “market velocity” for Santa Barbara today compared to December is as follows:

For Homes and Condos:
Under $500K: .3 months (9 days) of inventory (down from .9 months (27 days))
$500k – $1M: 1.2 months of inventory (down from 1.8 months)
$1M – $1.5M: 2.7 months of inventory (down from 6 months)
$1.5M – $2M: 3.3 months of inventory (down from 4.5 months)
$2M – $4M: 8.7 months of inventory (down from 11.1 months)
Over $4M: 38 months of inventory (down from 126 months)

According to the National Association of Realtors the average months of inventory in December nationwide was 4.4, the lowest recorded level since May 2005. Santa Barbara’s market velocity rate is now faster than that in all price ranges under $2M, and almost 15 times faster in the under $500K range.

In a quick moving multiple offer environment it can be more difficult and take more commitment to make an optimal purchase or successfully obtain the best offer possible when selling your property. Experience and hard work can help you tremendously in achieving the results you’re looking for. I appreciate the opportunity to assist you in these areas and thank you for all of your inquiries.