March 2021 Market Update
The data from the month of February confirms once again that we are still in the middle of the hottest seller’s market–maybe ever! Inventory remains low, but the numbers tell us that demand remains high. In the month of February, the total closed volume for single-family homes was over $266 million–86% more than February 2020. It’s important to note that in February 2020, the market had not yet been impacted by Covid-19, and at the time was understood to be a very strong market.
Not only was closed volume incredibly high for single-family homes, days on market and new listings were still nearly half what they were in 2020. In other words, homes are selling for twice as fast and for significantly more than they were a year ago–and with inventory so low, this trend will only continue.
Another number we look at to understand the pace of the market is months of inventory–a measurement of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. Last year, the months of inventory in February was 3.58. This means that a year ago, our best prediction of how long it would take for all of Santa Barbara’s current inventory to sell was roughly three and a half months. Last month, that number dropped to 1.4, translating into less than one and a half months to sell all of Santa Barbara’s inventory.
What does this mean? Prices are going up. We cannot predict how long this upward trend will last, but we do know that if you want to capitalize on these sales prices, now is the time!
Of course, we also know that selling a home isn’t just about maximizing sales price–many of you may be interested in the financial benefits of selling your home now, but are also likely asking yourself the question, “But where would we go?” Zia Group would love to help you answer that question, weigh your options, and ultimately support you in making the wisest decision for you and your family. Call us today for a free consultation to discuss how you can take advantage of this incredible market.
South Santa Barbara County Single Family Homes for March 2021
Including annual change | See definition of terms