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!
Santa Barbara’s real estate market has seen some small changes during the first half of 2019. The number of homes sold has decreased by 1% compared to last year, and the median sale price has increase by 1%. The largest gains in both categories have been in Montecito and Carpinteria, with buyers feeling more confident now buying in those areas since the 2018 mudslide has become a more distant memory.
Lower interest rates have certainly assisted in keeping buyer expenses down and sales up, even with lower inventory levels. The current outlook is for more of the same, with home supply continuing to play a large factor in future sales. Santa Barbara has started this June with a 9% decrease in newly listed homes, and a 44% decrease in newly listed condos, in comparison to last June.
We appreciate your inquiries, and look forward to seeing you around and enjoying Santa Barbara this summer season!
For the first time since 2011 the median sale price of a home in Santa Barbara has decreased. The 2018 median sale price finished the year at $1,270,000, four percent lower than the 2017 median of $1,324,000. Number of homes sold and total sales volume also decreased eleven and twelve percent respectively when compared to 2017.
There has also been an eight percent increase in number of new listings on the market in Santa Barbara over the past year. With the inventory increase many buyers have been able to find the homes they want at good values. There are currently many homes on the market in Santa Barbara priced below what they sold for fourteen years ago in 2005. This has not been the case in most larger metropolitan areas of California where the income to home price ratios are higher. Many current buyers in Santa Barbara are retired with incomes closely tied to the stock market, the volatility of which has largely increased since 2018.
All data indicates that Santa Barbara, California’s paradise city known as the American Riviera, is a better value now than it was fourteen years ago, and many buyers who have thought about making the move are now seeking to take advantage.
We appreciate your feedback and inquires, and look forward to keeping you up to date on this year’s activities and changes in the market.
Happy New Year!
Over the past three months there have been more homes selling on the west side of Santa Barbara than any other areas between Goleta and Carpinteria. With a 13% increase in number sold and 20% increase in sale volume over the same period last year it’s the only area that has not seen a decline. Although Hope Ranch and Carpinteria have declined in sales volume for the period they’ve also experienced a higher percentage of more expensive homes selling. This can largely be attributed to luxury buyers hesitating on making purchases in Montecito until more of a recovery from the recent mudslide events are felt.
Of the 76 sales in westside Santa Barbara and 9 sales in Hope Ranch over the past three months, following are the most notable. We take pride that our Village Properties brokerage successfully represented at least one of the parties in each transaction.
222 La Marina – 4 bedroom, 2.5 bathroom – Sold for $2,550,000
1631 Shoreline Drive – 2 bedroom, 2 bathroom – Sold for $3,950,000
3101 Cliff Drive – 4 bedroom, 3.5 bathroom – Sold for $7,100,000
1486 Cantera Avenue – 4 bedroom, 4.5 bathroom – Sold for $5,900,000
4161 Creciente Drive – 3 bedroom, 3.5 bathroom – Sold for $7,100,000
4230 Cresta Avenue – 5 bedroom, 8.5 bathroom – Sold for $13,600,000
Your inquiries are appreciated as we look forward to keeping you updated on our Santa Barbara area’s local market dynamics, and to the opportunity of assisting you with your most important real estate decisions.
The third-quarter Santa Barbara area median home price showed a drop of 5% from last year, down to $1,235,000 from $1,305,000. During the same period inventory rose 14% and number of sales dropped 14%.
The Santa Barbara condo market out performed homes in the third-quarter as the median sale price rose 4%, up to $665,000 from $639,000, with inventory decreasing 3% and number of sales rising 4%.
Rising rents have played a factor in the increase of lower-end property sales, and lower affordability coupled with higher inventory levels have helped to slow higher-end sales.
If you’ve been considering selling or purchasing a property in and around Santa Barbara we appreciate the opportunity to provide you with the most accurate and current data in the area to assist you in making your best informed decision. Our consultations are free and geared toward your success.
After a second quarter slow down the Santa Barbara area’s mid-year median home price of $1,292,000 came in slightly lower than the year prior. Number of sales also came in lower with a 12% decrease. The trend has continued through July with 14% less sales than last year, and the month’s median home price coming in at $1,250,000. With lower-end home sales prevailing, the year-to-date median home price is now at $1,287,000.
National and California media sources continue to report that low inventory levels are driving the slowdown in home sales and rise in prices. The Santa Barbara area real estate market though has actually seen 2% more new listings this year than last, and a slight median price decrease. Markets trends this year, as in the past, are showing to be very area dependent. In nearby Ventura the median home price has risen 7% to $625,000 this year amidst less new listings. The same has held true in Santa Barbara’s North County Santa Ynez Valley, where the median home price has increased 6% to $855,000 with less new listings available.
How is the real estate market performing in your neighborhood or area of interest? Bahura & Associates appreciates the opportunity to keep you informed of the latest local and surrounding area trends to assist you with your most important real estate decisions and needs.
In the past two months home sales in the Santa Barbara area have seen some interesting change. The first quarter median home price came in at a record setting $1,433,250 for 2018, a 7% gain over the first quarter of last year. Now the year-to-date median home price is at $1,300,000, which is a slight decline from the same period a year ago, and quite a drop from the first quarter. We haven’t seen a median price drop in the area in quite some time, alongside an increase in number of new listings, which currently there are 4% more of than a year ago.
Santa Barbara’s Westside is now showing a year-to-date decrease in number of sales over last year after showing an increase in the first quarter. The only areas now showing an increased number of sales for the year are Hope Ranch and North Goleta. Montecito has moved into first position for the biggest decrease in number of sales at 36%.
A hot topic around town right how is price reductions. Of the 285 homes listed in the past 45 days, over half (144) have already been reduced from their original asking price. A contributor to this is seller overpricing, which has been tempting for sellers to do given the area’s historically low inventory and continued demand.
Most national analysts feel that traditional indicators have not yet pointed to the start of a housing market correction, although most all agree that where you’re located has a big effect on where you lie in the cycle, and to keep an eye open for signs of change. We look forward to keeping you updated with the most current and accurate information on the Santa Barbara real estate market, and appreciate the opportunity to assist with your inquiries and needs.
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.
Tax time is upon us, as are proposed California property tax changes for later this year. The “Property Tax Fairness Initiative”, which is making ground to appear on the November 6, 2018 state general election ballot, would allow homeowners 55 years of age or older to transfer some or all of their Proposition 13 property tax savings to a home of any price, located anywhere in the state, any number of times. Yesterday the Homeownership for Families and Tax Savings for Seniors Committee announced that it has submitted nearly one million signatures collected from California voters to qualify the initiative. Initially brought to the forefront by the California Association of Realtors, the measure is seen as a way to help ease the shortage of modest-priced and move-up housing for young families while lessening the tax penalty for seniors who want to move. Studies have shown that almost three-quarters of homeowners 55 and older in California haven’t moved since 2000.
A significant change to Proposition 13 that’s making progress to be on the ballot is called the “California Schools and Local Communities Funding Act of 2018”. This ballot would allow for a “split-roll tax”, removing Prop. 13’s restrictions on reassessments and tax increases for larger corporate-owned commercial and industrial properties. A provision in the initiative allows for exemption of agricultural property and certain small businesses whose total property holdings are valued below $2 million. While raising business costs for many in California, the initiative predicts to raise up to $11 billion in new revenue from corporate property taxes, in which legislative analysts say 40 percent would go toward helping schools and 60 percent toward local governments. Still in the initial stages, this measure will need to collect nearly 600,000 signatures to make the November ballot.
Proposition 13, originally introduced as the “People’s Initiative to Limit Property Taxation”, passed in its entirety in 1978 with 64.79 percent of the vote. It will be interesting to see voter’s reactions to the proposed changes, and to what changes are destined for the future. We look forward to your feedback on the topic, and also to assisting you with your most important real estate inquiries.
Since the devastating mudslide on January 9th of this year the Montecito real estate market has struggled as one might expect. From the time of the unfortunate event until now there have been declines in just about every category when compared to the same period last year. The number of homes listed has dropped 41%, the number under contract has dropped 53%, the number sold has dropped 38% and the median price has dropped 3%. Clean up from the mudslide is still under way in which afterward there are likely to be more homes listed for sale. Interestingly, the not so far away luxury community of Hope Ranch, west of Santa Barbara has seen a large increase in the number of homes under contract since the incident. A 200% increase to be exact. It stands to reason that many Montecito residents have or are considering Hope Ranch as a safer luxury community to relocate to.
The Santa Barbara real estate market has shown much less impact since the neighboring Montecito mudslide event. The number of homes newly listed since January 9th is up 27%, number under contract down only 3% and median price up 33% due to the popularity of the higher price ranges.
In addition to local events there are many outside factors expected to make an impact on the Santa Barbara real estate market this year. The general well-being of the economy, stock market, and how high interest rates rise are on the top of the list. We look forward to keeping you informed of the most up-to-date and relevant developments throughout 2018 and look forward to your comments and inquiries.