Inventory level and number of homes sold this year has shown a strong correlation in the Santa Barbara area real estate market. For the first quarter of 2018 the number of available listings and number of homes sold both dropped -11%. The biggest drops in number of homes sold has been in South Goleta, Carpinteria, and Montecito at -61%, -59% and -23% respectively. The largest gains have been in North Goleta, Westside Santa Barbara and Hope Ranch at 39%, 15% and 6% respectively.
Although the area’s median home sale price is now at a record setting $1,433,250, gaining 7% for the first quarter over last year, there are many factors that the increase in median can be attributed to other than actual home values rising. The fact that more high-end homes have been sold in areas like Hope Ranch is one of the largest contributors. Another is the extreme lack of entry-level home inventory, which has decreased the number of low-end sales.
A more accurate way to measure how actual home values are performing on a year-to-year basis is to look at sale price changes of same properties. An example of a property that sold in the first quarter of 2017 and is being sold again this year is 10 Rincon Vista Road in Santa Barbara. The selling price last February for this remodeled home was $2,100,000. It’s now currently listed with an asking price of $2,195,000 and has been on the market 39 days.
For the most accurate evaluation of your current home’s value or any property you’re interested in purchasing please contact Bahura & Associates. We appreciate the opportunity to assist you with your most important real estate needs.