Year-to-Date Local Market Report
The holiday season is just around the corner as we close out the fourth quarter of the 2018 fiscal year. Santa Barbara’s local real estate market has been steady despite the unusual set of events and circumstances our area has faced this year. As a whole, Districts 05-35, which include Carpinteria/Summerland, Montecito, SB/East of State, SB/West of State, and Hope Ranch and Goleta, have seen a similar number of sales year-to-date, when compared with 2017, with only a 7.88% decline. This is largely due to the decrease in activity in Montecito. However, the average days on market has decreased by 17.76% and the median price has increased by 17.4%, which is quite a large increase year over year.
Understandably, new and active listings have decreased by 51%, but for the homes that are on the market, sales have been closing 25% faster and are on the market for 28% less time compared with the same dates in 2017. The median price for homes and estates has decreased by 8%.
With fewer available listings in the areas affected by the Thomas Fires, and a desire for a geographic area that has felt ‘safe’ to a large number of buyers, the market has shown a large increase in sales in the Hope Ranch area. Compared to 2017, the number of sales in Hope Ranch has increased by 40% with a median price increase of 32.91%. An additional $97,218,500 has been sold in 2018 vs. the same dates (YTD) in 2017.
Sales for homes in Santa Barbara (East and West of State) have remained nearly identical compared with last year’s numbers. Inventory for homes East of State has remained higher compared to those West of State. The overall median price of homes has increased by 3% compared to 2017. Sales in District 15 and 20 make up about half of total sales.
Compared to 2017, there were 29 fewer new listings in the Carpinteria/Summerland district which constitutes as a 39% decrease in new inventory. Additionally, the median sales price increased by 10%.
Sales and prices in North Goleta have remained nearly the same compared to last year’s numbers while South Goleta saw a median price increase by 4%.
Looking at the numbers a whole, Santa Barbara’s real estate market follows the C.A.R.’s forecast for California’s 2019 real estate market. The median prices are projected to increase while mortgage rates are still to remain at historically low figures despite the Fed gradually raising rates.