JULY MARKET UPDATE
Montecito's real estate market remains stable with property values leveling off, resulting in a more balanced market. While some sellers lower prices to attract buyers, we’re still seeing some sell off-market or, depending on their initial list price, they’re selling above asking. Demand for homes remains high, albeit with reduced urgency compared to a year ago.
Our market is consistently active year-round; however, there are some predictable times when activity temporarily slows down. One such period typically occurs between Memorial Day and the Fourth of July. During this time, we see many potential buyers and sellers occupied with end-of-the-school-year activities, transitioning into summer, and/or vacation plans (know anyone who is in Europe?!). Right on cue, our phones started ringing again the day after Fourth of July, and the pace in our office picked up considerably. Despite these slower weeks, the Santa Barbara market remains resilient!
Overall South Santa Barbara County Market
There were 316 closed sales throughout the South Santa Barbara County market in Q2, down 34% from 1 year ago, while Median Price ($1.75MM) is down just 6% YoY. Compared to Q1 2023 however, sales are up 31% and median price is up 12%.
As experienced over the past few years, the lack of sales has been driven by lack of inventory, held down by interest rates, weather anomalies in Q1, and other macro uncertainties. This trend can be summarized in Quarterly Sales Volume, where there was just over $554MM of Total Closed Volume market-wide in Q2, while up from two quarters, is down 30% from one year ago, and half the peak Covid market in Q2 2021. However, it should be noted that this level of volume is consistent with and even slightly higher than pre-Covid Quarters that had another 100 - 200 sales per Quarter, demonstrating how powerful the run-up in Median Price has been.
As of Quarter end, Inventory trends vary depending on the submarket; for example, in Santa Barbara proper, inventory is down 27% from one year ago, while Goleta is down 42%. In contrast, and in a positive step, Inventory in Montecito is actually up 20% from June 2022.
Montecito
Monthly: In June, there were 19 sales in Montecito, with a Median Price of $6.1MM, up 36% from June 2022, aided by 5 sales over $8MM, and 3 sales over $10MM, including Riskin Partners’ sale at 319 San Ysidro Rd for $22.5MM. 319 San Ysidro Rd is the only sale over $20MM in Montecito in 2023.
Quarterly: In Q2, there were 54 sales, up from 29 the past two quarters. Median Price at $5.5MM, was up markedly, and reflects is the highest quarter on record.
Santa Barbara
Monthly: There were 47 sales in Santa Barbara in June, down from 63 YoY (-24%), somewhat consistent with the decline in Inventory. Median Price was just over $1.85MM, up 5% from one year ago, with 6 sales over $4MM, highlighted by the sale of 3620 Campanil Dr for $6.34MM.
Quarterly: There were 141 sales in Q2, down from 171 in Q2 2023. In contrast to Montecito and Hope Ranch that set Quarterly records, Median Price at $1.65MM is down 10% from Q2 2022.
Hope Ranch
Monthly: There were two sales in Hope Ranch in June, 4025 Lago Dr for $3.65MM and 4662 Via Roblada for $5.5MM, the Average/Median Price of which is down 41% from a year ago when there were 5 sales.
Quarterly: On a Quarterly basis, there were 5 sales in Q2 with a Median Price of $9.5MM, also a quarterly record, given a strong April with 3 sales over $11MM.
Carpinteria
Monthly: There were 12 sales in Carp this month, on par with June 2022. Median Price was $1.2MM, down 6% from a year ago. The most expensive sale this June was 176 Ocean View Ave for $3.36MM.
Quarterly: On a Quarterly basis, there were 30 sales in Q2 2023, up from 24 last Quarter, but down from 41 sales in Q2 2022. Median Price was down 19% from Q222 when it reached a peak for Carp at $1.33MM.
Summerland
Monthly: There was only one sale in Summerland in June, 2570 Lillie Ave for $1.35MM.
Quarterly: On a Quarterly basis, there were only 3 sales in Q2 2023 for a Median Price of $2.2MM, down from 8 sales in Q2 2022 and a Median Price of $3.1MM
