All Eyes Are On Inventory...
...in Montecito and nationwide.
Nationwide inventory of single family homes recently declined by just under one percent to approximately 433,000. This is 25% fewer than last year at this time.
In Montecito there are currently 50 single family homes for sale. This is a slight dip from two weeks ago, where there were 52 active listings.
Declining inventory is not a new story and it’s not just a result of the massive shift in lifestyles that COVID and remote working have unleashed — declining inventory also directly correlates with interest rates. Over the past 5 years when interest rates were at their peak (just under 5% in 2018), there was an increase in inventory; 2019 started off with a bit more inventory than in 2018. There has been pretty much a steady decline in inventory since July 2019, with a low point in April of this year. The lack of inventory has been one of the catalysts for property competition in Santa Barbara and Montecito. As you can see below it is also driving prices upward.
In October and November we usually sense a new listing slow down with holidays approaching, however that was anything but the case for Montecito last year. We will soon see how this year compares.
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