Whitney Ranch Market Update | November 2022
As the real estate market within Whitney Ranch and beyond continues to recalibrate to a new economic reality, activity rebounded with 8 residential sales in October after having just a single transaction during the previous month.
Despite the increased activity, pricing held generally even from the last month with an average of $795,000. Typical of most markets, year over year pricing has settled from the hysteria of 2021 and remains steady with pricing from 18 months prior.
In the larger picture, inventory remains extremely low with just 10 residential properties listed. Notable within the current market dynamic is that of the 8 residential closings in October, nearly 6 required a price reduction from the original listing price before going into contract. Once a list price was determined to be reasonable, these transactions closed at an average of just 1.5% below the ask. Given the spread between original list price and final sales price, yet general price stability, the perception of a falling market would seem to lie with sellers overly ambitions in their asking prices rather than meaningful erosion of values.
Given the diversity of product within Whitney Ranch assigning market wide data trends to specific homes may send false signals. However, the chart below demonstrates that until a market reaches 6 months of inventory, price typically will not falter.
Current supply within Whitney stands at just 13 residential properties, less than 2 months of inventory at current rates of absorption.
Given the exceptionally high usage and desirability of Whitney Ranch and its corresponding amenities, as well as the distinct absence of distress for reasons to do with mortgage carry or equity, it is unlikely that the local market experiences a meaningful flood of inventory before Spring, 2023.
Although, we are in a shifting market dynamic, many elements of Whitney Ranch remain the same. The schools and sports teams remain top rated in the State. New homes are continuing to be built and sold. The community and ranch house team continue planning and promoting vibrant events and social gatherings, while the fall colors and open space preserves welcome the season change once again.
We expect a continued trend of diminished transaction volume yet less dramatic price reductions moving forward.