June 2024 Santa Barbara Real Estate Market

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June 2024 Market Update

Hello, Santa Barbara! I’m Daniel Zia, owner and founder of Zia Group, and welcome to your June 2024 Real Estate Market Update. Whether you’re considering buying or selling, or simply seeking the latest trends, this report is your comprehensive guide in the real estate market of Santa Barbara and Montecito. In this update, we’ll cover current trends, inventory levels, pricing, and what to expect in the coming months. Stay informed and make the best decisions for your real estate needs with our expert analysis.

Market Trends

  • The summer market is picking up with more buyers entering the market. After a slow May due to overcast weather, June is showing more activity as sunshine correlates with increased home-buying interest.
  • The recent settlement by the National Association of Realtors introduces landmark changes in real estate commissions. Be cautious of potentially misleading media reports and reach out for accurate information.
  • Interest rates remain stable, with uncertainty about potential rate cuts by the end of the year, but stable rates maintain a consistent market environment.

Inventory

  • The housing market has seen a significant rise in available homes compared to last year, with a 25% increase in homes for sale. This expanded selection is driving more sales activity.
  • The increased inventory for homes priced under $3 million offers buyers more options, and these properties are moving quickly. There are 2.5 months of inventory available.
  • There are 6 months of inventory for homes priced above $3 million, which take longer to sell. However, the selection is greater compared to last year.

Pricing

  • Home prices have increased slightly year-over-year, with a 7% increase in both median ($3,478,724) and average home prices ($2,252,500). Increased buyer leverage is due to more options available.
  • Homes are selling below asking prices, with sales at 3% below the last asking price and 6% below the original asking price. These discounts are slightly larger compared to last year.
  • The condo market shows mixed pricing trends, with the median price up 2% ($925,000) but the average price down 9% ($1,114,881) due to fewer luxury condo sales.

Sales Activity

  • There has been a significant increase in sales, with 15% more sales closed this year and 19% more homes in escrow.
  • The ultra-luxury segment is experiencing strong activity, with more sales above $20 million than in recent years. Confidence among high-net-worth buyers remains strong.
  • Homes are taking longer to sell, with affordable homes selling in 5-7 weeks and luxury homes in 8-12 weeks.
Monthly Mortgage Market Outlook from local Lender, Guaranteed Rate
The South Santa Barbara County real estate market is currently experiencing a 25% increase in homes for sale and a 7% year-over-year rise in home prices, with sales up significantly. Mortgage rates are averaging 7% for conforming 30-year fixed loans and 7.25% for jumbo loans. Anticipated Fed rate cuts in mid-September and December could lower rates to the mid-6% range, with fluctuations expected until then. This fall presents a strategic opportunity for buyers, as election-related uncertainty may reduce competition, offering motivated sellers and potential deals before the market intensifies again in January 2025.
  • Current mortgage rates are averaging 7% for conforming 30-year fixed loans and 7.25% for jumbo loans.
  • Expected Fed rate cuts in mid-September and December could lower mortgage rates to the mid-6% range.
  • Election-related uncertainty in the fall may reduce competition and create opportunities for buyers.
  • Be prepared to act quickly in the fall before the market heats up again in January 2025.

As we navigate through the dynamic landscape of the South Santa Barbara County real estate market, it’s clear that staying informed is key to making confident decisions, whether you’re buying or selling a home. At Zia Group, we’re dedicated to providing you with expert guidance and tailored strategies that align with your goals. Reach out to us today to discuss how we can assist you in achieving your real estate objectives. Thank you for trusting us to keep you informed. Happy Summer everyone!

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South Santa Barbara County Single Family Homes for June 2024

Including annual change | See definition of terms

106 new listings

5% Decrease

81 sold listings

19% Increase

287 homes for sale

29% Increase

$2,535,000 median sales price

14% Increase

48 avg days on market

45% Increase

2.63 months of inventory

45% Increase

South Santa Barbara County Condos for June 2024

Including annual change | See definition of terms

37 new listings

14% Decrease

31 sold listings

3% Increase

74 condos for sale

45% Increase

$940,500 median sales price

3% Increase

27 avg days on market

93% Increase

2.63 months of inventory

45% Increase

Montecito & Hope Ranch for June 2024

Including annual change | See definition of terms

25 new listings

31% Decrease

13 sold listings

41% Decrease

90 homes for sale

14% Increase

$5,550,000 median sales price

11% Increase

118 avg days on market

174% Increase

6.03 months of inventory

46% Increase

Single Family Home Sales Year-to-date

Including annual change | See definition of terms

$3,478,724 mean sales price

7% Increase

$2,252,500 median sales price

7% Increase

$1,175,809,010 sold volume

22% Increase

Condo Sales Year-to-date

Including annual change | See definition of terms

$1,114,881 mean sales price

9% Decrease

$925,000 median sales price

2% Increase

$132,670,925 sold volume

21% Increase

Definition of Terms