February 2024 | SANTA BARBARA REAL ESTATE UPDATE

2024 is off and running.  Though we don’t experience extreme weather like other parts of the country, we do have some seasonality. It takes a little time for buyers to return after the holidays.  We could try to extrapolate trends, but with just 86 sales it is probably good to wait till we complete the first quarter to see if the direction of the market is staying the course.

What we would like to share this month is a phenomenon that still surprises the real estate agent community.  Some buyers are willing to pay a surprising price for a NEW, DONE, TRENDY, & BEAUTIFUL home.  We have seen many beautiful high quality remodels, or well done new construction selling quickly and at record prices.

In the last couple months, a number of homes hit the market at prices that made agents heads turn, and then went quickly under contract and in some cases with multiple offers.

Here are two examples from the last few weeks.  1250 Bel Air Dr, sold in April of ‘23 for just a little over $2M. The buyers completed an outstanding remodel and addition, after that the home received multiple offers and is now pending with a list price of $4,395,000.  And there is another at 1018 Belmonte Dr, which sold in December of ‘22 for just under $1.85M and closed in February for $4.075M with no addition just a beautiful remodel.

And those are not lone examples as we are seeing some impressive sales on the Mesa, San Roque, & Montecito.  Also in February in Montecito Oaks a stunning property sold for $8.47M in a neighborhood that has not witnessed that number before.

All those sale prices seem surprising, but being so entrenched, we find that we need to remind ourselves of a couple things.  First it is easy to lose track of time and realize how much has changed over the last 5 years.  Second, and probably more importantly, as you consider the rise in construction costs and lengthening permitting time, buying something done has a lot of appeal.

To wrap up, we would be amiss to not quickly highlight two important indicators in our market, Inventory & Interest Rates.

Our inventory continues to remain tight and we are staying under 200 active properties between Carpinteria to Goleta.  On February 20, we had 179 active listings.

Late in 2023, we experienced an initial drop in interest rates after the Fed announced that they expected to cut rates three times in 2024.  Surprisingly, we have seen rates tick up by about a 1/2% in the short term.  This was most likely due to some unexpected positive economic news.  Overall most anticipate rates will still come down this year!

We love to talk about the market and all things real estate, so feel free to reach out if you need anything.  And we are always grateful for your recommendations.

 


THE HIGH & LOW

January 2024 Highest Sale  | 3139 Cliff Drive, S.B. |  Sold for $8,750,000

January 2024 Lowest Home Sale  | 4773 Baxter Street, S.B. |  Sold for $1,175,000


The Statistics

January 2024

  • Total Sales:  85 in ’24  vs  69 in ’23  |  UP 23%
  • Total Home Sales:  59 in ’24  vs  52 in ’23  |  UP 13%
  • Total Condo Sales:  26 in ’24  vs 17 in ’23  |  UP 53%
  • Median Home Price:  $2,425,000 in ’24  vs  $1,781,469 in ’23  |  UP 36%
  • Median Condo Price:  $844,250 in ’24  vs  $900,000 in ’23  |  DOWN 2%
  • Sales Above $8M:  1 in ’24  vs  6 in ’23  |  DOWN 83%
  • Pending Sales:  83 in ’24 vs 68 in ’23  |  UP 22%
  • Total Off-Market Sales:  12 Sales  |  14%
  • Total Cash Sales:  35 Sales  |  41%
  • Average 30-Year Fixed Rate Mortgage: 7.09% as of Feb. 26, ’24
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Jon-Ryan Schlobohm

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