As we bid farewell to another eventful year, it's time to reflect on the dynamic landscape of the real estate market in our area and delve into the key trends and shifts that have defined 2023.
Market Trends:
A transformative shift as interest rates reach their lowest point this year, settling comfortably in the sixes. The resulting surge in optimism, combined with lower interest rates, has led to heightened sales activity. Multiple offers and swift sales are becoming commonplace, indicating a more dynamic and competitive market. While cash transactions continue to dominate, the evolving landscape suggests a potential decline as interest rates improve, emphasizing the importance of strategic negotiation in the face of well-priced properties.
There has been a noteworthy reduction in the average time luxury homes spend on the market, particularly in prime locations like Montecito, owing to increased demand and competitive bidding scenarios.
Inventory:
Luxury condos have emerged as sought-after commodities, boasting an impressive average market time of just four days.
Pricing:
Well-priced Montecito listings have sparked competitive bidding situations, resulting in some luxury properties selling above their asking price. Condos, on the other hand, typically sell for around 90% of their asking price, maintaining stability in pricing trends. The market is witnessing relatively flat year-over-year prices, with some segments showing no change and others experiencing a slight one to two percent decrease.
Sales Activity:
Increased sales activity is attributed to lower interest rates and an uptick in inventory. Cash transactions continue to dominate the market, constituting approximately half of all closed escrows. The luxury market has gained momentum, with nine sales above $5,000,000 in the last month alone.
Looking Ahead:
Anticipating a more balanced market in 2024, the hope is for more sellers to enter the market and address the current scarcity of available homes. Despite challenges, the market showcases resilience and adaptability. With increasingly attractive interest rates and adjustments in inventory levels, the expectation is for a greater number of sales and a more dynamic real estate landscape in the coming year.
Navigating your real estate goals through 2024 calls for expert guidance and negotiation strategies as we anticipate continued interest rate decreases. We would be honored to be your trusted agents for any of your real estate, property management or investment property needs.
We wish you all a Happy Holiday Season and a Prosperous New Year. May this joyous season be filled with warmth, laughter, and cherished moments with your loved ones!
South Santa Barbara County Single Family Homes for December 2023:
*Including annual change
- 64 NEW LISTINGS
- 3% Increase
- 46 SOLD LISTINGS
- 21% Decrease
- 240 HOMES FOR SALE
- 15% Increase
- $3,261,156 AVG SALES PRICE
- 27% Increase
- 25 AVG DAYS ON MARKET
- 50% Decrease
- 2.22 MONTHS OF INVENTORY
- 59% Increase
South Santa Barbara County Condos for December 2023:
*Including annual change
29 NEW LISTINGS
- 5% Increase
- 23 SOLD LISTINGS
- 8% Decrease
- 65 CONDOS FOR SALE
- 5% Increase
- $1,414,965 AVG SALES PRICE
- 20% Increase
- 30 AVG DAYS ON MARKET
- 76% Increase
- 2.22 MONTHS OF INVENTORY
- 59% Increase
Montecito & Hope Ranch for December 2023:
*Including annual change
- 23 NEW LISTINGS
- 109% Increase
- 13 SOLD LISTINGS
- 63% Increase
- 89 HOMES FOR SALE
- 51% Increase
- $5,343,653 AVG SALES PRICE
- 10% Increase
- 28 AVG DAYS ON MARKET
- 81% Decrease
- 4.62 MONTHS OF INVENTORY
- 51% Increase
Single Family Home Sales Year-to-date:
*Including annual change
- $3,275,573 AVG SALES PRICE
- 1% Decrease
- $2,125,000 MEDIAN SALES PRICE
- 2% Decrease
- $2,253,594,542 SOLD VOLUME
- 24% Decrease
Condo Sales Year-to-date:
*Including annual change
- $1,264,340 AVG SALES PRICE
- 3% Increase
- $940,000 MEDIAN SALES PRICE
- 2% Decrease
- $319,878,034 SOLD VOLUME
- 23% Decrease