Residential real estate sales in the Santa Ynez Valley for new and existing homes have declined approximately 21 percent over the past year, according to statistics gathered by the Santa Ynez Valley Association of Realtors multiple listing service. The specific data came from Sotheby’s International Realty in Los Olivos.
The data, compiled by the multiple listing service and local escrow companies, shows 352 residential sales between December, 2005 to December, 2006, dropping to 278 residential sales between December, 2006 and the end of November, 2007.
The escrow firms reported 371 sales in the year to date for 2006, versus 303 sales to December, 2007. These figures also contain sales for mobile homes and commercial properties, accounting for the MLS discrepancy. Both sets of data, provided by Doris Banchik-Moxley, MBA
Broker Associate, Sotheby’s International Realty, could include multiple listings for ranches, she said, which are sometimes placed in the MLS under two headings.
“Sales are definitely down,” said Janet Sherman, executive director for the association. The only sales that have increased have been high-end properties, which tends to skew the statistics for median prices, she explained.
New home sales in the region, however, have been increasing every month, specifically at Skytt Mesa in Solvang. The development is now under construction by Curtis Homes, based in Buellton. The neighborhood will eventually include more than 200 high-end single-family homes situated on 87 acres overlooking Highway 246 on its northern boundary.
Sales in the Santa Ynez Valley are following the statewide trends, according to the California Association of Realtors.
“Statewide the decline in sales has plunged to 40 percent,” said Leslie Appleton-Young, the association’s chief economist. “We expect further weakness in sales over the next few months as the liquidity crisis plays out.”
Affordable housing continued to be available in most regions, with the High Desert and Sacramento showing the highest percentages of affordable homes available. Santa Barbara was listed as the least affordable region in the state.
The projected totals for 2008 could be the state’s lowest since 1985, according to association president Colleen Badagliacco. “Now is not the time for homeowners to ‘test the waters,’” she said. “Only serious sellers should put their homes on the market in what will continue to be a challenging sales environment.
While sales continue their slump, median home prices are inching up 3.5 percent in some regions, such as the Bay area. However, most median prices were lower this year than last year by as much as 10 percent per month in some areas, and the state association expects the downturn to continue through 2008 because of tighter loan and jumbo loan underwriting and defaults in the subprime mortgage market.