September 2023 Santa Barbara Real Estate Market

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September 2023 Market Update

Hello, Santa Barbara and Montecito! I’m Daniel Zia, CEO of Zia Group at eXp Realty, and here’s your data-driven September real estate market update:

Market Trends

  • High interest rates continue to affect buying power. Buyers are wary due to less favorable borrowing conditions.
  • Despite interest rate challenges, the market remains relatively stable. Buyers’ demand and constrained supply balance out, resulting in consistent pricing.
  • Uncertainty surrounds the Federal Reserve’s decisions on interest rates. While they may hold steady for now, one more rate increase is predicted by year-end.
  • The luxury market remains strong. August witnessed ten sales over $5 million, indicating optimism and confidence.

Inventory

  • Inventory levels are critically low. As of August, there’s an average of only two months of inventory for affordable and overall markets.
  • Buyers face fewer options with approximately 20% fewer homes available compared to the previous year.
  • Condo inventory is down by about 27% this year compared to the previous year, leading to a 29% decrease in sales activity.

Pricing

  • There’s a surge in activity in the $2-3 million price range, with 17 sales in a single month, typically selling within 2-3 weeks.
  • The market sees significant cash offers, comprising about 43% of transactions. Even with a slight drop from July’s peak of 49%, it’s still above the typical 38-42% range.

Sales Activity

  • The market has experienced a decrease in sales activity in 2023, aligning closely with the low sales year of 2009, with just over 500 sales year-to-date.
  • Luxury home prices generally see a 7% discount from the asking price to the final sale price.
  • The condo market remains stable, with quick sales and a 2% average discount from the asking price.

Looking Ahead

  • Prices will remain relatively stable, with only minor fluctuations depending on the market segment.
  • Overall, the market is in a state of equilibrium, but it requires more sellers to maintain a balanced market.

In this data-driven real estate landscape, it’s essential to stay informed. If you have specific questions or need personalized guidance for your real estate goals, please reach out. Until next time, Santa Barbara and Montecito, have a great day!

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South Santa Barbara County Single Family Homes for September 2023

Including annual change | See definition of terms

88 new listings

11% Decrease

72 sold listings

12% Decrease

266 homes for sale

7% Decrease

$2,747,298 median sales price

12% Decrease

27 avg days on market

35% Increase

2.19 months of inventory

43% Increase

South Santa Barbara County Condos for September 2023

Including annual change | See definition of terms

37 new listings

46% Decrease

21 sold listings

36% Decrease

63 condos for sale

18% Decrease

$1,462,214 median sales price

16% Increase

23 avg days on market

21% Increase

2.19 months of inventory

43% Increase

Montecito & Hope Ranch for September 2023

Including annual change | See definition of terms

24 new listings

4% Increase

14 sold listings

8% Increase

95 homes for sale

22% Increase

$5,339,892 median sales price

2% Decrease

43 avg days on market

65% Increase

4.92 months of inventory

121% Increase

Single Family Home Sales Year-to-date

Including annual change | See definition of terms

$3,165,123 mean sales price

7% Decrease

$2,090,000 median sales price

6% Decrease

$1,604,717,624 sold volume

31% Decrease

Condo Sales Year-to-date

Including annual change | See definition of terms

$1,230,110 mean sales price

None

$911,250 median sales price

4.7% Decrease

$228,800,518 sold volume

30% Decrease

Definition of Terms