As 2019 comes to a close we can clearly see the changes that have taken place in the Santa Barbara real estate market with respect to the year prior. Higher than anticipated increases in number of homes sold, total sales volume, and median sale price are evident after a somewhat slow first half, and continued lower inventory levels.
The total number of homes sold for 2019 increased 5% over 2018, with a 26% sale volume increase, and 4% median sale price increase. Although the now record $1,322,000 median sale price eclipses both the 2018 and previous 2005 peak, the currently healthy semi-luxury segment of the market combined with the inventory strapped entry-level segment have had definite influences on the new all-time high median price.
Several possible upcoming economic events could certainly push Santa Barbara’s real estate market to a new median sale price high again in 2020, including a stock market correction which could push interest rates even lower, and investors turning to real estate as a more comfortable asset haven. We should also see more of the same downsizing trends that helped shape Santa Barbara’s steady 2019 market, in which financially strong elders purchase more suitable homes for their needs.
We sincerely appreciate all the business and inquiries received from our clients throughout 2019, and look forward to assisting with opportunities for a happy and prosperous 2020!