Our May 2022 Newsletter

MAY 2022 | REAL ESTATE MARKET UPDATE

SB Monthly Market Moves

Brought to you by Joe, Avi, and Garrett at The Santa Barbara Group.

The Housing Market in Few Sentences 🏡

Joe: “The housing market in Santa Barbara is like a balloon with a slow leak. I don’t expect anything dramatic like significant price drops this year, but the lines to buy housing in Santa Barbara are getting shorter.

Inventory should start to build as more people choose to sell in the Summer months. Sellers who overreach with regards to their list price will have a hard time. Buyers may start to find opportunities if they know where to look.”

Avi: “We might just be starting to see the beginning of the end of the Covid seller auction market. More inventory is coming on, rapidly rising interest rates have put a big dent into affordability, and the stock market has taken a big hit as well.

For our sellers, this means we are going to have to be very realistic about price and we have even had a recent price reduction. For our buyers, this might mean not competing against 10+ offers. But those who wait on the sidelines might see affordability only get worse as interest rates continue to rise.”

Garrett: “The Federal Reserve’s intention of slowing down the nation’s economy and housing market appears to be in the beginning stages of taking hold. Locally, we have seen a steady increase in inventory to hit the market over the last 3 weeks with new listings hovering around 50 per week. With that being said – the number of pending sales appears to be hanging in there fairly well while absorbing a decent amount of that new inventory coming online. What does this mean overall?

For sellers, price sensitivity and strategy are going to be the main focus moving forward while closely monitoring the showing activity & feedback that’s received. For buyers, while you may not have as much competition as you would have 3+ months ago, you still want to be prepared to come in with a good foot forward if it’s a property that’s going to be receiving multiple offers.”

Joe’s Mid-Year Market Update 📅

What has happened in Santa Barbara’s real estate market so far in 2022? What might happen in the coming months?

Joe addresses interest rates, inflation, inventory, demand, and high-level, hyper-local trends that are happening in Santa Barbara.

Whether you’re in the market to buy, sell, or you just want to be informed, this video is a must-watch.

April Stats and Trends 📊

Graphic from Fidelity SB and Chicago Title SB.

In last month’s market update, we noted that interest rates, inflation, and gas prices are all on the rise, historically leading to a slow-down in the housing market.

Well, is it happening?

The sales pace slowed down from March to April, with 112 single-family homes and 61 condos sold in March, compared to 98 single-family homes and just 38 condos sold in April.

In fact, sales are down 38% from April of last year. Across the board, sales prices have still remained higher than last year with single-family homes selling for 18% higher than in 2021 and condos selling for 8% higher.

In April, only 23% of transactions were conducted through all-cash offers.

For the year to date, the average price for a single-family home in South Santa Barbara County is holding at about $3.6M, with the average price for a condo coming in just below $1.2M.

Will transactions continue to slow down? Will prices start to drop? Only time will tell. We’ll have our ears to the ground (or maybe the sand?) and report the statistics and trends back to you right here!

Featured Listing 🏡

216 East Figueroa Street Welcome to Las Villas de Figueroa, a luxury complex located in downtown Santa Barbara. Built in 2006, this beautifully maintained residence lies in one of Santa Barbara’s most sought-after neighborhoods. Within very close proximity to State Street, shopping, restaurants, and historical monuments, and just one mile to the beach, this location is unbeatable and rarely on the market. This condo is luxuriously appointed with an elevator that delivers you directly from the two car garage into your living area and primary suite. The southern exposure provides an abundance of natural light. There are two fireplaces, wood floors, a gourmet kitchen with an island, stainless appliances, decorator baths, and custom closets. There are even viewing decks from both levels. Welcome home!  Learn more or schedule a showing.

See you back here next month!

Sincerely,
Joe, Avi, & Garrett VISIT our Website
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BHHS: DRE#01317331
Joe Parker: DRE#01314939
Garrett McCaw: DRE#01457796
Avi Becker: DRE#02076584