Santa Barbara Real Estate Market Report | January 2024

Market Report January 2024

Knight Real Estate Group is pleased to present the January 2024 Market Report by Village Properties for South Santa Barbara County. The real estate market began the year on an optimistic note with January witnessing a total of 85 sales, marking a significant 25% surge compared to January 2023. Among these transactions, 34 were cash purchases, constituting 41% of the total monthly sales volume. Sales activity in the single-family homes segment saw a notable 13% uptick totaling 59 sales, while condo sales surged by an impressive 53%, reaching 25 sales during the month.

Despite strong demand, inventory remains tight with only 2.03 months of housing supply available, thereby contributing to the stability of single-family home prices. The average sale price for single-family homes held steady at $3,200,139 compared to January 2023, while the median sale price saw a substantial 36% rise to $2,425,000 due to an increase in luxury sales. In contrast, condominium sales experienced slight depreciation in both average and median sale prices, suggesting a nuanced and dynamic entry-level market.

In sum, the market demonstrated resilience and momentum during January, driven by lower interest rates and pent-up buyer demand for single-family homes. While challenges such as inventory constraints persist, overall market conditions remain favorable, offering opportunities for both buyers and sellers in the months ahead.

View the full report with insights more accurate than any other Santa Barbara market report, thanks to our friends at Fidelity National Title. We hope you find value in the publication and be sure to view recent sales and blog posts when visiting our website. If you have questions about the market, please reach out anytime.

Disclaimer: This report is based on available data and market trends as of 1/31/24. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.

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Santa Barbara Real Estate Market Report | December 2023

Market Report December 2023

Knight Real Estate Group is pleased to present the December 2023 Year-End Market Report by Village Properties for South Santa Barbara County. In reflecting on the dynamic real estate landscape of 2023, we observed a stabilization in property prices, juxtaposed with a decline in sales volume. The year-end figures for single-family homes in South Santa Barbara County came in slightly below 2022, revealing an average year-to-date (YTD) sales price of $3,196,512. Meanwhile, the median sales price remained steady at $2,100,000, marking a resilient performance. However, the total sales volume witnessed a notable 23% decrease from the previous year, totaling 1,105 units.

Condominiums, on the other hand, experienced minimal fluctuations in price. YTD, the average sale price for condos in South Santa Barbara County saw a modest uptick of 3%, reaching $1,237,909. The median price, while dipping slightly by -1%, stood at $945,000.

To make sense of the seemingly contradictory trends of reduced sales volume and price stability, two prominent themes emerged: low supply and robust demand from cash buyers. The statistics shed light on these dynamics:

• Inventory Months of Supply (MOS) commenced the year at 1.20 MOS, peaked at 2.48 MOS in October, and concluded the year at 1.90 MOS

• Cash Sales constituted 41% of all transactions in December 2023 YTD

The scarcity of new listings, coupled with sustained demand from cash buyers, acted as a stabilizing force on prices. It’s essential to note that these trends are generalized across the entire market; a granular analysis at the neighborhood level reveals varied experiences, with some areas witnessing price appreciation and others facing declines.

As we embark on the new year, mortgage rates have commenced a downward trajectory, and experts anticipate further reductions. The local real estate market has responded to these rate adjustments with optimism, evident in recent listings garnering multiple offers. Knight Real Estate Group anticipates a favorable year for both buying and selling.

View the full report with insights more accurate than any other Santa Barbara market report, thanks to our friends at Fidelity National Title. We hope you find value in the publication and be sure to view recent sales and blog posts when visiting our website. If you have questions about the market, please reach out anytime.

Disclaimer: This report is based on available data and market trends as of 12/31/23. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.

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Santa Barbara Real Estate Market Report | November 2023

Market Report November 2023

Knight Real Estate Group is pleased to present the November 2023 Market Report by Village Properties for South Santa Barbara County. Heading into the holiday season, the local real estate market is experiencing positive momentum driven by various factors that are influencing buyer behavior. A slight pullback in mortgage rates is contributing to increased buyer motivation, prompting them to act on available properties. In addition, the Federal Reserve’s indication of a planned decrease in interest rates in 2024 is further bolstering buyer confidence.

Despite a -25% decrease YOY in total number of sales compared to 2022, the market remains active with 1,028 total sales. The YTD average sale price for Single Family Homes is only down -1% to $3,235,949, indicating a relatively stable market. The median sales price has remained unchanged at $2,100,000. Condominium prices, however, have appreciated, with the average sales price up +4% to $1,249,110. This increase is attributed to more entry-level buyers turning to condos as an alternative to single-family homes. The data suggests that prices have either remained constant or even increased throughout the year, highlighting strong buyer demand in the market. With a more buyer-friendly mortgage market and expectations of lower interest rates in 2024, we anticipate a favorable year for both buying and selling.

View the full report with insights more accurate than any other Santa Barbara market report, thanks to our friends at Fidelity National Title. We hope you find value in the publication and be sure to view recent sales and blog posts when visiting our website. If you have questions about the market, please reach out anytime.

Disclaimer: This report is based on available data and market trends as of 11/30/23. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.

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Santa Barbara Real Estate Market Report | October 2023

Market Report October 2023

Knight Real Estate Group is pleased to present the October 2023 Market Report by Village Properties for South Santa Barbara County. Despite the ongoing activity in the local residential real estate market, it remains characterized by its dynamic nature. Year To Date (YTD) sales in South Santa Barbara County have experienced a decline of -26%, with the average and median sale prices down by just -3%, settling at $3,245,456 and $2,100,000, respectively. In contrast, the YTD average sale price for condominiums has seen a positive uptick of +4%, reaching $1,238,352.

The market has been influenced by low inventory levels and robust demand, particularly from cash buyers, who constitute 41% of all transactions YTD. This dynamic has effectively maintained prices throughout the year. However, it’s noteworthy that the months of inventory (supply) have seen a gradual increase. Beginning the year with 1.20 months of inventory, we currently stand at 2.48 months. While this figure indicates that we are still in a Sellers Market, the growing supply is impacting the marketability of properties that may be overpriced or underprepared for the market. This situation is creating favorable opportunities for Buyers.

For a comprehensive understanding of the market dynamics, we encourage you to review the full report, which boasts insights more precise than any other Santa Barbara market report, courtesy of our associates at Fidelity National Title. We trust you will find significant value in this publication, and we invite you to explore recent sales and blog posts on our website. Should you have any questions on market trends, please feel free to reach out any time.

Click here to view the full report »