Santa Barbara Real Estate Market Report – June 2017
Santa Barbara – Goleta Real Estate Market Trends – June 2017
Welcome to our latest real estate market report. June saw some surprising trends in the single family home and condo markets.
Our analysis will compare June 2017 with June 2016. June is traditionally a volatile time as families are pushing hard to make changes before the new school year begins.
FYI: We drew stats from the Santa Barbara and Goleta markets only for this report.
Let’s Look at Numbers: Single Family Homes
Number of Sales: 9 to 16. Up 78%. Trending Up. Huge Increase!
Inventory: 90 to 78. Down 13%. Trending Down.
Median Price: $957,000 to $1,184,000. Up 19%. Trending Up.
Days on Market: Trending Up.
Sale Price to List Price Ratio: 99.93% to 97.78%. Trending Down Slightly.
Santa Barbara Real Estate Market Report: The Takeaway For Single Family Homes
- Home sales in June 2017 were up significantly compared to last year.
- Inventory levels showed a substantial decrease in 13% fewer homes to buy.
- Average asking price went up 19% from a year ago.
- Although the sales to list price ratio showed a slight decline from the year prior, we would still look at the purchasing environment being more/less the same as it was a year ago.
What does all this mean to a home buyer or seller in today’s market?
Many buyers are feeling disappointment along with a less optimistic outlook. There were fewer homes to choose from and the prices were much higher. If you are a supply and demand person, this is a bad combo for home buyers and a happy one for those selling.
Other Thoughts: Home buyers tend to like fully updated homes, especially if they think the place is priced on the high side. If you are selling a home that needs work, you may need to price accordingly or wait a long time to find an interested party.
Santa Barbara Real Estate Market Report: Condominiums
Let’s Look at Numbers: Condominiums
Number of Sales: 2 to 6. Up 200% Trending Up.
Inventory: 51 to 43. Down 16% Trending Down.
Median Price: $742,500 to $680,450. Down 8% Trending Down.
Days on Market: 84 to 26. Down 31 % Trending Down
Sale Price to List Price Ratio: 99.07 to 100.28. Trending Up.
Santa Barbara Real Estate Market Trends – the Takeaway: Condos
What a difference between the SFH and condo market. Both saw sales go up and inventories trend down. Yet, condo prices went down while home prices shot upward.Why the difference? Condos have issues single family homes do not.
Why the difference? Condos have issues single family homes do not.
- HOA Fees: Condos always have HOA fees and most single-family homes do not. Often HOA fees add $300-$500 to the bottom line.
- Mortgages for condos are generally more difficult to obtain.
- A Smaller pool of buyers often equals less demand.
If I am a current buyer, I’m not so sure I would begin celebrating these good numbers. Time may no longer be on your side.
- Sales are way up from last year. (Indicator of higher demand)
- Inventory is down (Low Supply)
- Average Days on Market has gone down dramatically. The number “26” says the average condo is on the market less than a month. FYI: DOM’s in the 45-90 day range is considered normal.
- Sales Price to List Price Ratio has also reversed and is trending upward with owners of condos getting multiple offers and many over the asking price.
All the numbers suggest the time to get a condo deal may be passed for this cycle. That said, condo sellers may be able to price a bit more aggressively during the next few months until the cycle swings once more.
If you have questions about the real estate market in the Santa Barbara area, we are here for you. We love our industry and helping people achieve their dreams.
Garrett McCaw and Joe Parker
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