End of June Real Estate Market Update – Santa Barbara 2022
SB Monthly Market Moves - June 2022
The Santa Barbara Group's Take on The 2022 End of June Real Estate Market.
As always, we offer a variety of takes on the market from each of our team members along with some hard data we've included for your benefit. They say knowledge is power!
Joe: "We are slowly watching inventory build-up, but it is still far from normal levels. No longer are the days that every listing flies off the market. Buyers are getting more and more picky and cautious. The best way to describe what I’m seeing happen is the market is “downshifting” and you need to take your foot off the gas in order to change gears.
We could be in for a perceived decline in value in some segments of the market, while others continue to see very strong reactions from buyers, selling for over asking prices. I think some of the “hype” value will leave the marketplace and then, once that reset happens, things should continue in an upward direction at a much more modest pace."
Avi: "Interest rates, uncertainty in the stock market, and inflation of prices may just have finally put the dagger in the ecstatic sellers' auction market. We are seeing price reductions, inventory start to rise, and the start of hopefully a more balanced market.
This is great news for many of our buyers who have been discouraged by the hyper-competitive landscape of the market, and the fact they would often times be competing against 10+ offers. Home sellers will have to be more realistic with pricing strategy, even though there is still far more demand than supply in our hyper-local market."
| Garrett: "It certainly feels like summer is upon us if you look at the numbers and see that new listings to hit the market are down to 39 over the last week compared to 50 for the four weeks prior. It’s possible people have begun to prioritize their vacation time and postponed the idea of putting their home on the market for later on in the year.
With that being said, it’s now seemingly more apparent the seller’s Post Pandemic Real Estate Auction Market (dare I say) has come to an end. Rising home prices coupled with higher monthly mortgage costs have squeezed the interest rate segment of the market to a point where it’s now having a noticeable impact. This is not as apparent in the luxury market which tends to operate with mostly cash offers and seems to have more buyers than sellers. Nonetheless, it seems we are entering into a more balanced environment that will be dependent not only on the future of interest rates but on the overall health of the economy in general." |
In the section above, Joe described the market as "downshifting" and Garrett noted that "we are entering a more balanced environment."
As the summer weather heats up, the market is gently cooling off, with a bit less inventory being snatched up and price reductions becoming more common. Let's take a look at the numbers.
- There were140 total sales in May, keeping pace month over month with the 136 total sales completed in April.
- There were only 92 single-family homes sold in May of this year, a 42% drop off in volume from the 159 single-family homes sold in May of 2021. Nearly cutting sales in half year over year is a good indicator of a market that's "downshifting."
- The average price for a single-family home fell half a million from $3.7M in April to $3.2M in May. We know that it only takes a few sales of Hope Ranch or Montecito mega-mansions to skew this average sales price, but it's still a statistic to keep in mind.
- 26% of all transactions in May were completed through all-cash offers, only 3% higher than in April.
Each month, subtle changes are appearing in our hyper-local Santa Barbara market. We'll keep monitoring these changes and reporting them back to you here.
Opportunity Listing June 2022
Special opportunity on the Mesa in Santa Barbara. The executor to the estate would like this home sold now! This retro little mesa throwback has been cleared out, cleaned up, and features 3 bedrooms, 2 bathrooms, 2 car garage, a good sized backyard, newer roof, and an epic location near Mesa Lane and the beach.
Before you get too excited, PLEASE NOTE. This property is being marketed to create a multiple offer situation. The asking price of $1,195,000 is more of an opening bid, than it is a buy-it-now price. Reports posted online. Seller is looking for top dollar and an AS IS sale. Offers due 6/28/22 6 PM nothing will be considered prior.
Thanks for joining us for our late June 2022 Santa Barbara Real Estate Market Report. If yo have any questions, toss us an email or give us a call. We are here for YOU!
Joe Parker, Garrett McCaw, Avi Becker
The Santa Barbara Group at Berkshire Hathaway HomeServices California Properties
3868 State Street Santa Barbara, CA 93105
(805) 886-5735
https://TheSantaBarbaraGroup.com
Cal BRE #01314939
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