August 2023 Santa Barbara Real Estate Market

Hi, I’m Daniel Zia, the CEO of Zia Group with EXP Realty, and here’s your August update on South Santa Barbara County’s real estate market.

Market Trends

• Interest rates are up, tempering activity.
• 49% of July transactions were cash purchases, highlighting strong local capital.
• The market is stable and slightly favors sellers, similar to last year.

Inventory

• Current inventory is about half of what it was in 2019.
• Condos are selling quickly but are also in short supply.

Pricing

• Monthly data shows a 12% increase in median sales prices compared to last year, but year-to-date comparisons suggest prices are down 5-6%.
• Luxury homes are selling at about a 7% discount but more quickly than before.

Sales Activity

• Year-to-date sales are down compared to the record-breaking year of 2021.
• A scarcity of sellers, not buyers, is the primary constraint.

Looking Ahead

• Interest rates aren’t expected to drop soon.
• We predict a stable market for the coming months, with lower inventory and slight leverage for buyers.

Thanks for tuning in. Wishing those with kids a smooth start to the school year. See you next month!