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.
Since 2010 U.S. housing starts have been on the increase, however are still well below most non-recession periods in U.S. history. Higher cost of construction, closely assessed risk factors and less financing available for developers are all part of the current equation. In addition, new residences cost home buyers more per square foot than existing properties, approximately a 23.8% difference according to data recently collected by the National Association of Realtors. To read the full article click here.
In Santa Barbara affordability is certainly a factor. With the median resale home price reaching $1.14M in August many buyers are already at their maximum price point when purchasing an existing residence, where any new home purchase in the same size range would put them over budget.
The Knoll, Santa Barbara area’s newest housing development off N. Patterson Road has just reduced their prices by $300,000. Now priced at $2.095M and $2.15M these residences are 4,150 sq.ft., costing $500 to $520/sq.ft.
Sevilla & Alma Del Pueblo, both developed in prime Santa Barbara downtown locations, have also experienced the need for recent price cuts with many units still available today.
The Village at Los Carneros are offering new condos and homes priced more toward entry level buyers and are selling much quicker than higher end developments in and around Santa Barbara. From $385 to $470/sq.ft. with sizes ranging from 1,014 to 2,417 sq.ft., and prices from $475,990 to $1,024,990.
The Village at Los Carneros – 6720 S, Calle Koral Road #209 – 1 bed/1.5 bath – $530,990
Sevilla – 401 Chapala Street #107 – 1 bed/1.5 bath – $1.175M
The Knoll – 5343 Plunkett Lane – 4 bed/4.5 bath – $2.095M
I appreciate your inquiries on both new and resale properties in the area, and look forward to keeping you posted on all new developments!
This month marks the 20th anniversary of my career as a Realtor in the Santa Barbara area. Over the years I have had the good fortune of working with hundreds of clients to whom I owe my business success to. Thanks to all of you who have given me the opportunity to do what I enjoy most in a place that I love the best.
It is not my success or desire to succeed that will keep me passionate about the business for the next 20 years. The strongest motivation comes from the ability to establish positive and life changing relationships along the way. As stated on my website, “It can be as rewarding watching others achieve their dreams and goals as accomplishing our own. Contributing to another’s success allows for some of life’s finest moments.”
Thanks for all of your inquiries and for the opportunity to assist you with your most important real estate dreams and goals in the years ahead. Here’s a toast: “To your success!”