2023 is off, working and moist! We now have been checking the rain totals all too typically. Sufficient about rain – we’re prepared for some solar, and hopefully that is the final storm. Now, right here is the most recent Santa Barbara actual property market information.
The principle headline stays: gross sales quantity continues to remain low. Evaluating it to our extra traditionally “regular” years, our gross sales quantity is down round 35% year-to-date, persevering with the pattern that we skilled within the second half of 2022.
There are a selection of causes for the notable lower in gross sales.
First, the variety of energetic listings continues to remain remarkably low. On March 14, between Carpinteria to Goleta, we solely had 129 houses and condos for sale in any respect worth factors. For perspective, our stock traditionally would drop to round 250 on the finish of a calendar 12 months. When this may occur, we think about that low stock, and historically, it could bounce again up shortly.
Second, rates of interest have elevated a lot, affecting each patrons and sellers. For patrons it’s merely costing them way more to purchase a house. For sellers, it’s a little bit like a pair of handcuffs. Many sellers are locked right into a low rate of interest fortunately, however giving up that mortgage and fee for one thing twice as costly has cooled the thought of promoting for many.
However to not be missed, even with rates of interest doubling, dwelling possession continues to be very interesting, and now we have extra patrons out there than sellers. As realtors, we’re all networking in our search for houses for our purchasers. A number of days in the past, we obtained an e-mail from a fellow agent with an inventory of 20 completely different houses she is wanting for. That is an excessive, however there are a lot of patrons out there wanting for houses.
During the last couple months, there have been a pair stunning information.
With rates of interest rising and gross sales quantity dropping we anticipated extra of our transactions to be money purchases proportionally, however at a fast look at gross sales present that it continues to observe kind of our historic norms. The stability of money and financed purchases is regular; money gross sales aren’t proportionally greater.
The second shock has been the sale costs some houses are garnering. We now have seen a handful of properties with formidable record costs going below contract shortly. As well as, we’re nonetheless listening to about a number of presents and a few properties getting bid up. Total, costs appear to be stabilizing.
Much like our better Santa Barbara space, Carpinteria has skilled fewer gross sales within the first two and a half months of 2023. By the center of March, solely 18 gross sales occurred, with 11 single-family houses and 7 condos.
What has stood out to Sarah and me is our Carpinteria Properties proceed to fetch, nonetheless setting some record-high sale costs. A number of of the notable gross sales had been:
4923 Sandyland Rd. offered for $8,100,000. This free-standing beachfront dwelling is gorgeous and offered shortly.
3656 Foothill Rd. offered for $3,810,000 with a number of presents. This 1.8-acre Nineteen Twenties property in additional authentic situation supplied an ocean view, pool and tennis courtroom.
604 Holly Ave. offered for $2,000,000. This duplex supplied two good items only a few blocks from the seaside.
1475 Camellia Cir. offered for $1,580,000. This dwelling positioned in our conventional neighborhoods was offered in June of ‘22 for $1,125,000 and reworked.
And lastly, 6380 Lagunitas Ct. offered off the marketplace for $1,875,000. Constructed-in 2013 with good upgrades, that is the best sale in Lagunitas so far.
The Stats
YTD • Jan – Feb 2023
• Complete Gross sales: 142 in ‘23 vs 236 in ‘22 | DOWN 40%
• Complete Residence Gross sales: 101 in ‘23 vs 168 in ‘22 | DOWN 40%
• Complete Apartment Gross sales: 41 in ‘23 vs 68 in ‘22 | DOWN 39%
• Median Residence Value: $1,95,000 in ‘23 vs $2,207,000 in ‘22 | DOWN 12%
• Median Apartment Value: $925,000 in ‘23 vs $875,000 in ‘22 | UP 6%
• Gross sales Above $5M: 17 in ‘23 vs 23 in ‘22 | DOWN 23%
February 2023
• Complete Gross sales: 73 in ‘23 vs 129 in ‘22 | DOWN 43%
• Pending Gross sales: 88 in ‘23 vs 132 in ‘21 | DOWN 33%
• Complete Off-Market Gross sales: 9 Gross sales | 12%
• Complete Money Gross sales: 24 Gross sales | 33%
• Common 30-Yr Fastened Fee Mortgage: 6.67% as of March 20, ‘23
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