October 2021 Market Update
You may have heard that around the US, real estate markets appear to be slowing down. Is the same true for Santa Barbara? Let’s take a close look at the most recent statistics from the month of September to find out.
Let’s begin with the months of inventory, or absorption rate. If you’ve been following along with these reports, you’ll know that months of inventory indicate how long it would take to sell all of the homes currently on the market. Since January 2021, that number has stayed below 1.61. This month, it remains low at 1.12 for homes and estates in Santa Barbara and 1.7 for the luxury market (Montecito and Hope Ranch combined). In other words, the homes that are on the market are selling very quickly, and if no other homes went up for sale, we’d be completely out of inventory in less than two months, closer to one!
Indeed, homes are selling rapidly in Santa Barbara. On average, homes are selling in 18 days. For perspective, just a year ago–even when the market was already pretty hot–homes were selling on average in 57 days! In fact, even homes in Montecito and Hope Ranch are selling this fast, which is nearly unheard of in our market. Last year, homes in Montecito and Hope Ranch averaged 91 days on the market before selling. In September 2021, that number is 18 days–and we don’t think it’s because realtors have suddenly become 80% better at marketing!
In reality, the reason homes are selling faster is because of high buyer demand and incredibly low supply. We saw far fewer homes come on the market in September, and overall inventory remains between 40-58% lower than September 2020.
What does this mean for home prices? They continue to grow. The median sales price year to date in September was $1,893,250–a 27% increase from the year before. If you own a home and are considering selling, now is still a great time to take advantage of this significant growth in your home’s equity.
If you’ve been considering purchasing a home, but these home prices worry you, or you are concerned you won’t be able to compete in this market, we highly recommend you talk with one of our realtor partners today to discuss your specific needs and goals. Even in this competitive market, we’ve been able to help our clients reach their real estate goals through our proprietary negotiating strategies. We’re happy to discuss all of your options with you so that you can make an informed decision today.
South Santa Barbara County Single Family Homes for October 2021
Including annual change | See definition of terms