Santa Barbara Market Update

Cuurent November Santa Barbara Market Update

  • Existing home sales fell 2.2% in September to an annualized, seasonally adjusted sales rate of 5.38 million units. Through the first nine months of this year, sales are down 1.7% relative to 2018’s first nine months.1
  • The median sales price of the existing homes sold during September was $272,100, a 5.9% increase over the median price a year earlier.1
  • Sales of new homes slipped 0.7% in September to a seasonally adjusted annual rate of 701,000 units. That pace is 15.5% higher than the rate in September 2018. Year-to-date, new home sales are 7.1% higher than they were through the first nine months of 2018.2
  • The median sales price of the new homes sold during September was $299,400, an 8.8% decrease from the median price a year earlier.2
  • As widely anticipated, the Federal Reserve made its third 25-basis point cut this year in its target range for the federal funds rate. Specifically, the Fed will buy or sell Treasury securities in order to keep the rate on overnight funds that banks loan each other between 1.50% to 1.75%. Until August 1, the Fed operated in 2019 to keep this rate between 2.25% to 2.50%.3
  • The homeownership rate climbed to 64.7% in the third quarter from 64.3% in the second quarter. It averaged 64.4% in 2018, up from 63.9% in 2017. It reached its post-recession low of 63.1% in early 2016.4
  • The under-35 years old homeownership rate was 37.5% in the third quarter, up from 36.8% a year earlier.4
  • The economy expanded at a 1.9% annual rate during the third quarter, and 2.0% in the past year. Over the ten years of this expansion, growth has averaged 2.3%.5
  • Residential investment increased at a 5.5% rate during the third quarter, breaking a string of six consecutive quarterly declines. During this expansion, it has risen at a 4.4% average annual rate.5
  • The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 3.78% during the week ending October 31, up three basis points from the previous week. The rate averaged 3.69% in October, up from 3.61% in September. That breaks a string of ten consecutive monthly declines in the average mortgage rate. All rates quoted have fees and points averaging 0.5% to 0.6% of the loan amount

Statistics provided by Wells Fargo

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