Marsha Kotlyar Estate Group  |  License #01426886  |  805-565-4014

Q2 20024 | REAL ESTATE MARKET UPDATE

July 5th, 2024

 

What’s happening in the current market?


Knowing and understanding the data is critical. I believe in delivering advice to our clients akin to how a doctor prescribes treatment: informed and precise.

Currently, in our local market, comparing statistics to this time last year, during Q2 in South Santa  Barbara County (Goleta to Carpinteria), inventory grew 11%, and expected market time rose 15%. With that said, the number of sales grew, sold volume increased, and average/median prices rose. Listings sold at 97% of the asking price, down from 99% last year. The average price in South SB County is now over $2.88 Million.

In Montecito, inventory grew 4%, and the number of sales fell 17%. While both the average and median prices rose, properties are taking longer to sell (the average days on the market was 80 days). Listings sold on average at 95% of the asking price, down from 97% last year.

In Hope Ranch, inventory doubled, and the number of sales followed.  The average and median prices slipped, and properties took much longer to sell (the average days on the market was 170 days). Listings sold at 95% of the asking price, the same as last year. 

How might the upcoming election affect our market and your property values?

While we typically see a marginal slowdown in transactions in the second half of an election year, these sales often rebound strongly the following year. This means that buyers don’t really go away; they simply delay their purchase and return with more urgency than before. In 9 out of the past 11 election cycles, the number of sales increased post-election year. Additionally, in 10 out of the last 11 election years, home prices rose the following year. 


Positive year-over-year job growth has kept the labor market resilient, maintaining the unemployment rate in the low 4% range. Mortgage rates are incrementally decreasing and speculated for further reductions in September.

I am often asked if people are still moving to Santa Barbara & Montecito. 

The answer is yes. Though not all are relocating full-time, people are coming and spending their best days here. Continued stock market gains have driven local demand, with homes in premium locations fetching the highest prices. Though price adjustments are widespread (36% of listings in South SB County reduced their prices during Q2), the slowdown we are seeing in the market is truly due to the demand muted by high rates and political uncertainty. While our local market is mostly immune to the higher rates, even a 1% decrease in mortgage rates would significantly improve mobility in the marketplace. 

Every market has "dips" & "corrections." Santa Barbara continues to be an appreciating real estate market. However, the most significant appreciation comes with the enhanced lifestyle you will get living here. 

Stay tuned for my next quarterly update in October, where I will review the Summer statistics for Q3. Contact me anytime for specific questions about your property and the market.


STATISTICS IN YOUR AREA


Curious about the market, your home value, or recent industry news? We are here to connect and discuss what is top-of-mind. We would be delighted to chat and bring you up to speed. For a confidential consultation, contact us at 805.565.4014 or email Home@MKGroupMontecito.com.


NOTE: This is not in any way an official advertisement or publication of these properties. Data from The MLS and CORT for April 1, 2024 through June 30, 2024 and represents properties listed or sold by various brokers. The MLS, CORT, and Marsha Kotlyar Estate Group do not guarantee and are not in any way responsible for its accuracy, and data maintained may not reflect all real estate activity in the market. If your house is currently listed, this is not intended to be a solicitation. Based on information obtained from the MLS as of June 30, 2024. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent contained herein may or may not have been the Listing and/or Selling Agent.

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