SEPTEMBER MARKET UPDATE
As we near the end of Q3 2024, it’s clear we are witnessing a tale of two distinct markets in Montecito.
The High Demand for Turnkey Properties
Properties that boast prime locations and have been newly updated or renovated aren’t lasting long on the market. These turnkey homes, priced competitively, are seeing quick sales, often at or very near the listing price. Buyers are actively seeking out these move-in-ready options, appreciating the modern amenities and minimal work required. Oftentimes, they’re even buying the furniture as well. The appeal of a well-located, fully updated home cannot be overstated, as buyers are willing to act fast when they find the right fit.
Challenges for Fixer-Uppers
Conversely, homes that require even minor updates—such as new countertops or a fresh coat of paint—are facing a tougher market. These properties can linger on the market longer as buyers become increasingly selective. We’re observing a trend of price reductions for these listings, as sellers adjust their expectations to attract interest in a landscape where buyers have a wealth of options.
A Shift in Buyer Mindset
While there remains a strong demand for homes in Montecito, buyers are approaching the market with a newfound caution. With more choices available, many buyers no longer feel the urgency to rush into a decision. Some are adopting a wait-and-see attitude, hoping for even better deals in the future. Others, eager to secure their next home, are still meticulous about their selections, seeking the perfect match rather than compromising.
Montecito
Sales in Montecito for the month were on par with August 2023 (15 sold this August vs. 14 last August). On the high end, there were four sales over $8MM, with three sales at or just over $11MM: 2128 Birnam Wood Dr ($11MM), 1130 E Mountain Dr ($11.050MM), and 2039 Boundary Dr ($11.050MM). What’s notable is two of the sales over $11MM were in Birnam Wood and recently renovated.
Santa Barbara
There were 54 sales in Santa Barbara in August, up from 50 one year ago. Median Price was unchanged at $1.855MM. There were five sales over $4MM, the most notable being 1445 APS for $5.125MM, and 1615 La VIsta Del Oceano for $6.75MM
Hope Ranch
There were three sales in Hope Ranch in August for a Median Price $6.2MM. The most notable sale was 4045 Lago Dr for $6.3MM
Carpinteria
In Carp, there was a significant decline in closed sales activity compared to last August, with only nine sales this month (-47%). Median Price, at $852,000 was down 7% from last August, as seven of the nine sales were below $1MM. The most notable sale this month was 1258 Cravens Ln #1 for $1.2MM.
Summerland
There was only one sale in Summerland, 2304 Varley St for just under $1.47MM.
