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However, the same price increases that have helped real estate investors in Santa Barbara for 10 consecutive years are now forcing them to rethink their strategies. With about 350 active listings, the Santa Barbara housing market only has a few weeks of inventory on the books. However, it is worth noting that 106 of today’s listings are either at risk of foreclosure or are already in the process of being repossessed; that’s 30.3% of the market’s total inventory. Homes in Santa Barbara receive 3 offers on average and sell in around 30 days.
These inventory statistics indicate that Goleta remains in a heated Seller’s market. Carpinteria/Summerland and Montecito have crossed over into a more balanced market. With a combined total of 47 House/PUD pending sales and 130 active listings on the South Coast of Santa Barbara County, there is only a 2.8-month supply (up from 2.2 in October) of House/PUD listings from which Buyers can choose. The South Coast market as a whole still remains entrenched in a variety of Seller’s Markets, except for Hope Ranch which is in a Buyer’s Market. As the market is in transition, listings are staying on the market longer with fewer multiple offers, but multiple offers still happen.
Neighborhoods in Santa Barbara
In November 2022 the median sales price was $1,722,000, down from $1,735,000 in October and up 15% from 2021. The median sales price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, started an upward creep in 2020, and then accelerated in 2021 and into 2022. In early 2022 new record-high median sales prices were being set each month and have now leveled off and slightly declined. In November 2022, Santa Barbara County home prices were down 12.9% compared to last year, selling for a median price of $731K. On average, homes in Santa Barbara County sell after 43 days on the market compared to 27 days last year.
In November 2022 the median price of the 20 House/PUD sales was $1,158,750 and the average price was $1,654,044. In November 2022 the median price of the 11 Condominium sales was $639,000 and the average price was $856,500. The lowest-priced Goleta sale in November 2022 was a Condominium on Dearborn Place @ $535,000 and the highest was a PUD on Heron Court @ $3,450,000. In the City of Santa Barbara, there were a total of 36 residential sales in November 2022, down from 55 in October. In November 2022 the median price of the 27 House/PUD sales was $1,880,000 and the average price was $2,301,227.
Home offer insights for Santa Barbara County
Low inventory and accelerated pandemic migratory trends toward smaller cities all led to a surge in Santa Barbara property values. Market corrections will affect values on the South Coast of Santa Barbara, but not as much as in many other areas. With continuing low inventory, supply and demand dynamics have and will continue to affect the South Coast of the Santa Barbara Real Estate Market now and for a long time to come. Long-term real estate investors in Santa Barbara will appreciate the cash flow potential and low borrowing costs. Still, the most attractive aspect of investing in the local market may be supply and demand.
Even with all the negative press, Santa Barbara real estate values have been more resilient to the downward pressures than other parts of the country. The on and off again pandemic has affected our lives and how everyone buys and sells real estate. The historically low mortgage interest rates have risen dramatically since early 2022 when many would-be Sellers locked in on mortgage rates of 3% or less, so there is now a financial consideration to stay in their current homes.
King Tides and above average temperatures
Hear what agents are saying across the country and make smarter decisions when buying or selling a home. Whether you’re brand new to investing, have closed a few deals, or are a seasoned investor— our new online real estate class reveals the best real estate strategies to get started with real estate investing in today's market. Expert investor Than Merrill explains how these time-tested strategies can help you to profit from the current opportunities in real estate. More than four out of five counties of tracked by C.A.R. recorded a year-over-year decrease in closed sales in October, with 29 counties declining by more than 10 percent.
It is adjusted to account for seasonal factors that typically influence home sales. There are 280 homes for sale in Santa Barbara and Goleta, down 25 percent from last year, he said. Half of all sales are paid in cash, and about 25 percent of all sales are going for over asking price — about 7 percent over, Wood added. February’s median home price was $930,000, compared to $830,000 in January, Woods said. Work with a top Santa Barbara real estate agent to figure out the best selling strategy and start bidding wars on your home. Find a top agent with a proven track record of selling homes faster than their peers or who can help you find your dream home, no matter how quickly their market moves.
Nearby County Listings
Rental properties appear more suited for today’s market and can help offset the city’s exorbitantly high prices. Additionally, the Coronavirus has tilted many of today’s most important market indicators in favor of passive income holdings, and investors are in the beginning stages of reaping years of rewards. Almost all California counties experienced year-over-year price growth, as 49 out of 51 counties tracked by C.A.R. showed a gain in their median prices from last year. Eight counties set new record high median prices in October, as compared to seven counties the prior month.
Housing market information is provided by Altos Research, Inc. based on analysis of all active market properties for sale in the US in the preceding week. All analytics are copyright Altos Research and not affiliated with any MLS. ClimateCheck™ analyzes a property's risk from climate change using the latest modeling and data from climate scientists, universities, and federal agencies. Flood risk data is provided by Risk Factor™, a product of the nonprofit First Street Foundation.
Historically the highest number of active listings along the South Coast was recorded in June of 1992 when there were an astounding 1,297 active listings available for Buyers to choose from. The Santa Barbara real estate market has enjoyed the same lucrative ride many of its California counterparts have. However, to the city’s credit, the price increases don’t seem to have detracted from demand. If anything, demand remains relatively healthy, which is the primary reason prices continue to rise. Years of appreciation have actually shifted the way local investors look at deals.
Heat risk estimates how much climate change might increase the typical number of hot days in a year and the likelihood of extreme heat and heatwaves. The latest migration analysis is based on a sample of about two million Redfin.com users who searched for homes across more than 100 metro areas. To be included in this dataset, a Redfin.com user must have viewed at least 10 homes in a three month period. The 30-year, fixed-mortgage interest rate averaged 3.07 percent in October, up from 2.83 percent in October 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.54 percent, compared to 2.89 percent in October 2020.
The average sale price of a home in Santa Barbara was $1.74M last month, up 2.2% since last year. The average sale price per square foot in Santa Barbara is $1.19K, up 18.3% since last year. The median price of sales in Montecito in January and February rose over 60% from one year ago, proving that the high-end market is particularly vigorous.
While Santa Barbara foreclosures have been held in check thanks to government assistance and moratoriums throughout the pandemic, they are expected to rise in 2022. Unfortunately, many homeowners won’t be able to make payments when they are asked to come current with their obligations. When that time comes, those who can’t comply may find themselves distressed, and well-positioned investors in Santa Barbara may be able to offer a helping hand. The average sale price of a home in Santa Barbara County was $730K last month, down 13.1% since last year. The average sale price per square foot in Santa Barbara County is $454, down 8.5% since last year. It’s a place to connect with a local agent, explore financing solutions, schedule home tours, understand your buying and selling power, and more.
While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Fire risk estimates the risk of wildfires, based on the likelihood of burning in the future and the potential size and severity of a fire. The Redfin Compete Score rates how competitive an area is on a scale of 0 to 100, where 100 is the most competitive.
That is due in part to some homeowners who are wary of COVID-19 infection risk from letting potential buyers visit their homes, Grubb said. Renee Grubb, owner of the locally based real estate agency Village Properties says demand for residential homes is higher than ever, and it’s keeping area realtors on their toes. Easy-to-use tools let you list your property where millions of renters search each month. Plus, messaging and tenant screening are integrated into our listing platform to help you find and screen applicants faster. The same inventory shortage that served to increase prices for the better part of a decade may be magnified by home builders sitting on the sidelines during the pandemic. Without new builds being brought to the market, it is safe to assume competition will remain high, driving prices up even higher than they are now.
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