July 2022 Santa Barbara Real Estate Market


July 2022 Market Update

How do you make the right decision in a shifting market? The reality is, you will always be making decisions in a shifting market, however, sometimes those shifts are more or less dramatic, and it really depends on where the market is shifting. But how do you know?

Well, we like to start with the data. The basic data we consider includes how many homes are listed and sold, how long they took to sell, and what price they sold for. This data can show us quite a bit about the relationship between supply and demand in our market, however, it is limited to the past. Any realtor in Santa Barbara and Montecito has access to this data.

What sets Zia Group’s market analysis apart? In June, we sold over 11% of all homes sold in Santa Barbara and Montecito. That means we are working with more buyers and sellers than any other agent or team, which gives us unique insight into the daily ebb and flow of supply and demand, and the many factors that influence it. When we combine this on the ground experience with market data, we have a pretty clear picture of what is happening, and what might happen next.

So, where is the market going? As we said last month, buyers are gaining leverage in negotiations. We have experienced this more in recent weeks, especially as we’ve seen an increase in “price reductions”–meaning sellers are not getting the price they initially thought they could get and are reducing the list price on the market. Looking back to the data, the months of inventory in June was 1.33. This means that if nothing else went on the market, all of Santa Barbara and Montecito’s inventory would sell in 1.33 months–a relatively short timeframe, but longer than it’s been all year. This is another indicator that the market is shifting and giving buyers a little more leverage.

To be clear, this is still a sellers’ market–it just feels a little different than what we’ve grown used to, which was the strongest sellers’ market we’ve seen in recorded history. In June, the median sales price was still $2,207,500, 18% higher than it was this time last year. In other words, at least as of June, sales prices were still incredibly strong. We will be tracking the data as it comes in to see how the relationship between an increase in price reductions relates to sales prices. In the meantime, reach out to your Zia Group Realtor Partner today to schedule a consultation about your real estate goals in light of these changes.

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South Santa Barbara County Single Family Homes for July 2022

Including annual change | See definition of terms

122 new listings

23% Decrease

104 sold listings

18% Decrease

259 homes for sale

9% Decrease

$3,077,944 median sales price

25% Increase

27 avg days on market

50% Increase

1.33 months of inventory

7% Increase

South Santa Barbara County Condos for July 2022

Including annual change | See definition of terms

37 new listings

45% Decrease

30 sold listings

33% Decrease

56 condos for sale

45% Decrease

$1,421,453 median sales price

36% Increase

12 avg days on market

25% Decrease

1.33 months of inventory

7% Increase

Montecito & Hope Ranch for July 2022

Including annual change | See definition of terms

25 new listings

32% Decrease

27 sold listings

10% Decrease

71 homes for sale

12% Decrease

$5,457,453 median sales price

28% Increase

26 avg days on market

4% Decrease

2.35 months of inventory

59% Increase

Single Family Home Sales Year-to-date

Including annual change | See definition of terms

$3,435,899 mean sales price

9% Increase

$2,250,000 median sales price

13% Increase

$1,862,257,720 sold volume

21% Decrease

Condo Sales Year-to-date

Including annual change | See definition of terms

$1,234,843 mean sales price

19% Increase

$950,000 median sales price

19% Increase

$254,377,718 sold volume

6% Decrease

Definition of Terms