May 2023 Market Update
Our market is still a strong seller’s market with a number of homes selling quickly despite all the significant events we’ve seen on a national economic level. As in months prior we continue to see very low inventory and we’re seeing even fewer sales. Throughout the last month, we maintained a 6 week supply of inventory with 26% fewer new listings and 35% fewer properties going into escrow. In terms of activity overall, the market was down by 35% in terms of the number of homes sold, and we saw the lowest number of home sales last month than we did in any other month over the last 14 years. There has been less than half the home sales year to date compared to year to date in the peak of 2021, but that is likely because there has also been half the number of listings. Even though the number of sales is down considerably, the data also shows that 80% of the homes that have come on the market sold, which actually means that we saw 5% more of our inventory sell last month when compared to the same time last year. Further, 36% of offers were cash offers, which is a strong outcome for sellers as well.
We do see variation in the market when taking into consideration price ranges, with the $1m to $1.5m range being particularly strong in comparison to other price ranges. Given the significant shortage of inventory for more affordable homes in our area for several years, this difference is understandable. More affordable homes are also selling faster and taking about 2-6 weeks to sell, while luxury homes are taking about 2-3 months to sell on average. That said, sales outcomes like 1850 Jelinda Drive in Ennisbrook, which closed at $18m last month, demonstrate that we are still seeing strong outcomes in the luxury market as well.
Looking specifically at home prices, we do see that the median and average sold prices are down year to date over year to date (median price down 13%, average price down 11%) and on average properties are still selling a bit below their asking price (97% of their final listing price, and 96% of their original listing price). In the condo market, median sales prices are up but average sales prices are down overall. This doesn’t necessarily mean that well-priced homes will sell below their asking price or for 11-13% less than they would have last year, but it does highlight the importance of pricing your home right. Zia Group has seen significant success in selling the homes we have brought on the market in recent months, and most of our listings this year sold in the first week with multiple offers. Further, one of our most recent listings was brought on the market at just under $3.2m and received 5 offers, and went into escrow over the asking price, contingency free. Strong outcomes for properties that are priced well still occur and you can still capitalize on the appreciation that we’ve experienced in recent years even though we are still seeing some correction to the market.
As in months prior everything we’re seeing again highlights an important fact: in a market as nuanced as this, it remains critical that you work with an expert real estate team like Zia Group in order to best navigate the market to accomplish the best possible outcome for your real estate goals. Reach out to Zia Group today for a complimentary consultation. We would love to help you!
South Santa Barbara County Single Family Homes for May 2023
Including annual change | See definition of terms