October 12th, 2021
The 3rd quarter 2021 statistics are in. Our local real estate market experienced the lowest inventory in history, with continued over-asking price sales and more off market deals than ever before, all contributing to rising prices in every segment of our market. In a nutshell, supply is not keeping up with the continued demand and we are seeing fewer sales.
Compared to last year, in South Santa Barbara County the number of active listings fell 32%, and the number of sales slipped 11%. Those who were able to secure a property did so with much competition as we continued to see multiple offers on the same listing. While total sold volume rose 6%, both the average price & median price grew 19% & 8% (respectively). The average listing spent 24 days on the market compared to 22 days during this time last year. On average, listings sold at 101% of their asking price, which shows how many homes are selling over their asking price. Two Montecito estates tied for the highest sale price in South SB County, at 699 San Ysidro Road, and 700 Park Lane, which both sold for $28,000,000.
It was slim pickings in Montecito, as the number of active listings was slashed in half during the 3rd quarter and the number of closed sales dropped to 86 from last years 162. As a result, the number of sales slipped 36%. While sold volume remained the same, prices shot way up. The average price jumped 56% and the median price shot up 44%. The current yearly median price in Montecito is $4.2million. The luxury market was hotter than ever with 11 sales over $10 million during Q3, compared to only 4 sales this time last year. In Montecito, the average property spent 50 days on the market compared to 27 days during Q3 2020. On average, listings sold at 99% of their asking price, up from 96% last year. And 28 listings sold over their asking price in Montecito during Q3.
2 Interesting facts: 9 of the 12 highest Q3 sales in Montecito were sold off market.
There were 38 total off market sales during Q3, 6 of which my team was involved in.
Although a narrower market, Hope Ranch experienced a similar picture. Compared to last year, inventory was cut in half and in turn, the number of sales were also cut in half. While sold volume slipped 12%, average price jumped a sweltering 69%, and median price grew 73%. The current yearly median price in Hope Ranch is $4.5million. Time on the market was significantly reduced. The days on the market averaged 9 days, compared to 53 days this time last year. Hope Ranch listings closed on average at 96% of their asking price, up from 92% last year.
I anticipate the inventory shortage to continue through the rest of the year. Interest rates are projected to rise in 2022 and we could see inventory free up after the new tax plans roll out in the new year. The future of our local communities is a very important topic, and it is more important than ever to have a voice in local politics, so don’t forget to vote in the upcoming November 2 election. Stay apprised of our next market update in January to read the full 2021 yearly review. If you are thinking of making a change and would like to take advantage of this unique market, let’s get together to determine if it is time to make your move. Call 805-565-4014 or email Home@MKGroupMontecito.com for a complimentary consultation. All calls are confidential.