Montecito Market Report | May 2022
As the May 2022 numbers show below, we are still experiencing a hot Seller’s market. The median sales price dropped 13% since last year but I feel this number may not be an accurate bellwether considering the limited number of transactions (16) compared to May 2021 (51) and the minimal available inventory. As I write this, the Federal Reserve has raised interest rates by 75 basis points (the most significant increase in nearly three decades) prompting the 30-year fixed mortgage average to be 5.78%, (the largest one-week jump since 1987). To add to this, inflation continues to rise with consumer prices up 8.6% for the year ending in May. Despite these indicators, prices continue to remain high in our limited market, with multiple offers still the norm. We are though, experiencing more price reductions than I have seen in a long time, mainly on properties that were priced too high to begin with.
Now more than ever, working with a creative and seasoned agent who prices and markets your property strategically is critical. Contact us to discuss the current market and how it relates to your property.