Whitney Ranch Market Update | February 2023

Whitney Ranch Market Update | February 2023

2023 has begun with an interesting set of results for real estate sales in Whitney Ranch. The second half of the last year was defined by a slowing of transaction activity but general stability in pricing. The modest pace of sales continued with 5 residential properties changing hands. The prior month saw 9 transactions to close out the year. For comparison, last January, nearing the peak of frothy market conditions that defined the previous several years, experienced 13 transactions.

In contrast to the very slow and gentle downward drift of values over the last several months of 2022, the average price rose in January signaling the continued demand for the most well-appointed homes.  While the median price of $902,000 is lower than December’s figure it is 2.5% higher than the same period a year ago.

Interestingly, the composition of these sales took on a meaningfully different look over this period. The average size of homes sold in January was a 3,233 square foot 4-bedroom home. In December, the average property was just 2,720 square feet. The increased size nearly equals the premium on price by percentage providing almost perfect stability on a price per square foot basis.

In addition to demonstrating general stability, to see consumers willing to pay premiums for additional space and programming is an excellent beacon for market health. Anticipating that most, if not all, are purchasing primary homes that will include the use of leverage, consumers appear comfortable with where interest rates have settled and are signaling an ability to afford the property that suits them best.

23 active listings offer a very stable 3 months of inventory. Historical trends indicate that this number is likely to remain stable at least through Q1 consistent with modest transaction figures. Options are likely to increase in spring into early summer though early signs are indicating that demand is likely to keep pace if not exceed the rate at which new listings come to the market.

Should current conditions hold, at worst Whitney Ranch appears poised for a steady and solid year of real estate activity. Any tailwind whether from improving equity markets or further stabilization of interest rates may only serve to accelerate absorption and pricing; albeit at a rate more modest than 2020 and 2021.