Q3 | 2024 | REAL ESTATE MARKET UPDATE

In South Santa Barbara County (from Goleta to Carpinteria), year-to-date comparisons show a 7% increase in the number of sales and a 13% rise in inventory compared to last year. Prices continue to climb: the average price grew 12%, and the median price rose 5%. The total sold volume is up by 20%, mostly due to some large luxury transactions. However, listings are currently selling at 96% of their asking price, a slight dip from 98% last year. The average price in South SB County is now approximately $2.855 million. The water must find its level: while there have been more price reductions so far this year than in the previous year, these numbers remain well below those seen during the last election cycle.

In Montecito, inventory rose 15%, and the number of sales dipped 3%. Despite this, the market shows clear signs of strength: both average and median prices have increased (20% and 10%, respectively), and total sold volume is up 16%. Properties are selling at 94% of their asking price, compared to 95% last year. The average price in Montecito currently hovers around $7.623 million.

Hope Ranch presents a slightly different picture. So far in 2024, inventory has decreased by 12%, and sales are down 18%. Total sold volume has dropped 26%, and while the average price has fallen 10%, the median price has inched up 2%. Homes in Hope Ranch are selling at 93% of their asking price, down from 95% last year, with the average price now at $6.457 million.

The Federal Reserve has begun implementing rate cuts, with expectations for further reductions into 2025. Although slightly lower mortgage rates will not trigger a sudden influx of buyers and sellers, continued rate cuts will encourage more movement, especially for those looking to transition out of homes that no longer suit their needs. With more buyers entering the market, we can expect continued upward pressure on prices. Lastly, Santa Barbara homeownership is not for everyone. It is cost-prohibitive for most people to live here, but when you compare this community to other luxury markets, we are still considered a value. While the average sold price per square foot in our local $3 million+ market is currently around $1,761/sq ft, it remains a value compared to other high-end markets around the country, like Aspen, where prices exceed $3,100/sq ft.

As we move through the final quarter of 2024, I feel very fortunate to call Santa Barbara home. With over 21 years of experience in the local real estate market, my team and I have a proven, time-tested approach: get in the game and put our negotiating power to work for you. Historically, Santa Barbara prices rarely decline. The barrier to entry may seem impossible, but whatever you purchase today is likely to appreciate tomorrow. Just ask any long-time local homeowner. And in this market, effective pricing is key. While marketing is the bait, the list price is the hook. My team and I are here to guide you every step of the way, so don’t hesitate to reach out for a confidential consultation.