August 2022 Market Update
For the last few years, we’ve been in a market with incredibly high demand and record lows of inventory. This summer, because of factors such as increasing interest rates and broader economic concerns, we’ve watched demand fall as well, as buyers have chosen to sit on the sidelines. What we’ve witnessed, while it feels like a huge market shift, has really been a market correction. Buyers have gained a little more leverage–back from when they had nearly none–and home values have not continued to appreciate as drastically (though home values overall are not down).
What has this meant for buyers and sellers this summer? Well, price changes have become more frequent, up by 26% from last year. Homes have also taken longer to sell, about 25% longer than July 2021. This has meant that sellers are having to think about their home sales a little differently since there is less buyer demand right now. Though, again, we are still seeing strong sales prices, with the year-to-date median sales price 14% higher than this time last year. For today’s active buyers, it means a little less competition, though still not a lot of inventory to choose from.
Part of what we are seeing in this market correction is that far less real estate is selling this year than last year. In the month of July, the Santa Barbara MLS recorded that $191,652,920 in real estate sold. This seems like a huge number, but in fact it is nearly half of what sold in July 2021, just one year prior. If we look at all sales from January to the end of July, Santa Barbara sales volume is down 24%, a significant change that implies that the market really has slowed down–again, both supply and demand are down.
Zia Group doesn’t have a crystal ball about what lies ahead, nor do we have any one-size-fits-all advice for our buyers and sellers. We do have decades of experience and an intimate knowledge of the market week by week to help inform our buyers’ and sellers’ decisions each step of the way. Call your Zia Group Realtor Partner today to discuss and learn more.
South Santa Barbara County Single Family Homes for August 2022
Including annual change | See definition of terms