The 2nd quarter statistics are in, and we have digested the data for you in a concise summary of the local real estate market and our predictions on what to expect for the rest of 2023.
In South Santa Barbara County, the 2nd quarter saw the number of sales drop 24%, sales volume fell 24%, median price slipped 9%, and average selling price dipped by 7%. We operated with a 13% reduction in inventory. The average price is currently hovering around $2.52 Million.
While there were a mere 5 sales in Hope Ranch this quarter, 3 of them were each individually over $10 Million. There were only 9 new listings that came on the market, a 25% reduction from last year. Though the sold volume fell a staggering 61%, the median price increased 36%, and the average selling price grew 18%. On average, properties sold at 95% of their list price.
In contrast, Montecito’s inventory rose during Q2, with the number of new listings increasing 32% over this time last year. Though the number of sales slipped 14% and sold volume fell 12%, the median price rose 9%, and the average selling price grew 2%. On average, listings sold at 97% of their list price. The highest residential sale in South Santa Barbara County was at 319 San Ysidro Road, selling for $22 Million.
There are a variety of factors contributing to this market shift:
- An uncertain economy, volatile stock market & higher interest rates. Although not as detrimental in the higher end, where most deals are cash.
- Foggy & cooler weather during Q2. The #1 reason people move to Santa Barbara is the warm temperate climate. If the sun isn’t out, buyers aren’t coming out either.
- Limited selection: If buyers don’t find what they want, they don’t step up.
- Post-COVID pricing: Some sellers still think we are in a pandemic-induced market & haven’t adjusted to the softening market.
What can we expect for the rest of the year?
On a national level, the stock market and interest rates will do what they do. On a local level, I expect more inventory will come to market, resulting in a more level playing field. Realistic sellers will need to adjust their home pricing strategy accordingly, and buyers will jump back into the fray. Stay tuned for our next quarterly market update in October to see how the Q3 real estate market unfolds.
Who you work with matters
Now more than ever, you need a seasoned agent. With 20 years of experience selling local real estate and a proven track record for helping clients succeed in any market, our team is ready. If you are thinking of making a change and would like to discuss your options, contact us at 805-565-4014 or email. All calls are confidential.