2016 real estate activity for Hope Ranch was rather sluggish. Much of this slow market was attributed to the presidential election. The great news is that once the election was determined activity spiked with 6 properties entering escrow. What a way to end 2016 and bring in the New Year!
In 2016 Hope Ranch had a total of 23 closed sales. Year over year this was a decrease of 12 sales, or 52%, as 35 properties sold in 2015. The median sale price was down 14.9% to $2,850,000. The average sale price of $3,300,652 was off 22.5% year over year. The last time we experienced a decline of this size year over year was 2007 to 2008. What do you notice that is similar between 2008 and 2016? Yep, they were both election years with non-incumbent presidential candidates.
You may ask, how did the real estate market rebound the year following a newly elected president? The easy answer is poor. However, 2009 was an anomaly as it was a prime year of the Great Recession. 2017 will be much different as the economy is substantially better off than the previous president inherited. Additionally, an indicator of the real estate market moving in the right direction was the way we ended 2016 – with an influx of activity.
This year in Hope Ranch we will experience an increase in activity with modest appreciation. In our opinion we will see in the neighborhood of 31-35 sales, or approximately 3 a month. The median and average sale prices will increase significantly. High-end luxury properties that have been on the market for an extended period of time will finally sell. The highest priced home that sold in 2016 was $6,300,000. 2017 will experience a sale, or multiple sales, that exceed $15,000,000.
Below is the 2016 Hope Ranch Fourth Quarter Real Estate Market Update. if you have questions about any of the properties that are for sale, in escrow or that have sold, please let us know. We are here to be your go-to real estate resource. Click here to contact us or call/text us at 805.770.0889.