Santa Barbara Real Estate Market Update For September 2022

September 2022 Market Update

If we haven’t said it enough, home values have not gone down, even as the market has shifted. The median sales price for homes and estates in Santa Barbara is up 38% compared to August of last year, and when we compare the year-to-date median (January-August 2021 compared to January-August 2022, a more stable number), it is up 17%. Inventory is also incredibly low, having now reached levels that we haven’t seen since February. What does this mean for today’s buyers and sellers?

Before we jump in, it is important to note that Zia Group represents more buyers and sellers than any other agent or team in Santa Barbara. We don’t say this to boast; this fact is actually noteworthy because it directly impacts our ability to offer accurate interpretations of market data. In August we represented either the buyer or seller on 12% of all home sales in South Santa Barbara County–a figure significantly higher than that of any other agent amongst approximately 1800 agents in our area. While 12% isn’t representative of the whole, it does give us a unique perspective on the market that we want to share with you–our clients–so you can make the most informed decisions about your real estate goals as possible.

Given our unique position in our area, we can share what we’ve seen in terms of buyer and seller leverage over the past month with a strong degree of confidence that our experience is reflective of the unique Santa Barbara market as a whole.

First of all, today’s buyers are less likely to enter into a bidding war when they write an offer on a home. This does not mean that competition is completely lacking, but it does mean that there is less of it than we have seen in the past. Further, today’s buyers seem to have enough leverage in today’s market to make sizable requests throughout escrow for credits or price reductions. Sellers are now having to consider these requests more seriously than they were when they had 3 other strong offers lined up. On the other hand, buyers are still offering premium prices, removing contingencies in their offers, and handling negotiations with care. Buyers who are testing the boundaries with more aggressive negotiation tactics aren’t necessarily successful and have nearly compromised deals as a result.

In sum, if you are considering selling your home, today may still be a great time to do so. You may not receive the volume of offers that you would have a few months ago, but this does not seem to be significantly limiting sales outcomes as a whole. At the same time, if you are a buyer who previously grew tired of your home search due to bristling competition over seemingly every home of interest, now may be a good time to step back up to the plate.