happy 2023 YEAR END REPORT
Hello Family and Friends -
It’s a Wrap - The 2022 Real Estate Market is in the books and it was an interesting year to say the least.
Let’s start with what is remarkable—2022 brought record setting transactions with two eye-popping sales above $50M. One an oceanside compound in the enclave of Padaro Lane in Carpinteria and the second a noteworthy estate on Picacho Lane in Montecito. Additionally, a home on Hot Springs Road in Montecito traded for $36M and five more homes traded above $20M. I think we can confidently say that demand to live in our exclusive piece of the breathtaking Central Coast is high on the list for many accomplished, affluent individuals. Read on for trends, detailed year end stats, graphs and properties that are currently available that we feel are good values—and reach out for more details.
Simultaneously to the extraordinary sales, we have seen some significant price reductions in the Luxury Market—often due to over ambitious original list prices. Regardless, Montecito and Hope Ranch are still defying national trends and continue to increase in value. We ended the year with 210 sales in Montecito which is in line with 2019/2018 when we had a more “normalized” market. Of the 15 December sales, 8/53% sold off market. In the much smaller (but equally desirable) community of Hope Ranch, we saw 28 sales during 2022. More local 2022 Trends/Highlights on the next page.
Overall in Santa Barbara, the first quarter of 2022 started out on a robust pace with homes still receiving multiple over-ask offers and the median sales price reaching the highest level in 15 years. There was a shift during the remainder of 2022 with slowing number of sales and low inventory, while prices remained steady. We all saw what happened starting in May when the Federal Reserve stepped in and interest rates climbed. The market slowed noticeably and buyers who need a loan watched their buying power diminish (as illustrated in the graph below that clearly shows how higher rates lead to a big drop in transactions locally). Comparatively, the stock markets unpredictability has also impacted many cash buyers who are watching their investment portfolio decline. Nevertheless, 38% of total transactions were “All Cash,” in Montecito 48% and Hope Ranch 46%.
National headlines are reporting that the real estate market is correcting/declining, but that’s not necessarily the case in the Montecito/Santa Barbara area. We often remind our clients that real estate is hyper-localized and we personally have several qualified buyers actively looking to purchase. What’s happening in other areas of the country does not always correlate to the neighborhood you may own in or be looking for a home in. Inventory may be in short supply, but the Santa Barbara Coast remains highly desirable and there are more buyers who want to purchase than properties available for sale so prices remain stable.
After roughly two years of a pandemic fueled market frenzy all across the country that brought prices to all time record heights, it felt like the housing market escalation would never stop. Could 2023 bring some normality to the real estate market? Let us know your predictions!
Looking for professional + creative results-oriented representation? In this competitive market, who you work with matters - Let’s Talk!
2022 TRENDS/HIGHLIGHTS
ONE | Demand continues and well qualified buyers are moving here at a pace we have not previously seen but we only have a limited amount of available homes for sale. With this historically low inventory, there were 40% fewer transactions in the fourth quarter of 2022 compared to 2021.
TWO | Despite low inventory, prices remain steady. The median sales price continued to rise in 2022 to an all time high of $2,104,000 overall, $5,450,000 in Montecito and $5,625,000 in Hope Ranch.
THREE | “All Cash” transactions were 34% overall, 48% in Montecito and 46% in Hope Ranch. Off Market transactions were 14% overall, 18% in Montecito and 7% in Hope Ranch. In comparison, the previous Off Market normal was around ±4%.
FOUR | The disparity between median price and demand, mixed with uncertain market conditions, may keep some buyers on the sidelines. Many are looking for a market correction or more certain economic indicators to improve their confidence.
FIVE | Sellers are adjusting to the new normal of not receiving multiple offers on the first day or first week. While the selling environment is not as favorable to homeowners as it has been over the last two years, it’s still a great time to sell and take advantage of historically high sold prices, elevated home equity and potentially a phenomenal return on your home investment. The limited inventory for buyers to choose from may make your property stand out.
- southSANTA BARBARA COUNTY
YEAR END REPORT 2022 | In Review
Single Family Residences + Condominiums
-35% change over 2021
1443
SINGLE FAMILY RESIDENCES
TOTAL YTD SALES
-34% change over 2021
1015
AVERAGE SALES PRICE
+12% change over 2021
$3,370,912
MEDIAN SALES PRICE
+12% change over 2021 $2,104,000
CONDOMINIUM HOMES
TOTAL YTD SALES
-37% change over 2020
428
AVERAGE SALES PRICE
+15% change over 2021
$1,196,194
MEDIAN SALES PRICE
+14% change over 2021
$958,000
- southSANTA BARBARA COUNTY
DECEMBER 2022 | In Review
Single Family Residences + Condominiums
-45% change over 2021 76
SINGLE FAMILY RESIDENCES
TOTAL SALES
-36% change over 2021
58
AVERAGE SALES PRICE
+79% increase over 2021 $4,932,964
MEDIAN SALES PRICE
+20% increase over 2021 $ 2,102,500
CONDOMINIUM HOMES
TOTAL SALES
-62% change over 2020 18
AVERAGE SALES PRICE
+20% change over 2021 $1,130,235
MEDIAN SALES PRICE
+13% change over 2021
$952,500
FEATURED PROPERTIES
MONTECITO
DECEMBER 2022 | In Review
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES
15
AVERAGE SALES PRICE
+14% change from 2021 $ 7,338,800
MEDIAN SALES PRICE
+42% change from 2021 $5,825,000
HIGHEST SALES PRICE
1616 East Mountain Drive Montecito CA 93108
$17,500,000
LOWEST SALES PRICE
41 Ridgeview Road Montecito CA 93108
$1,700,000
Click for Real Time Market Data
Real estate is thought to be the best long-term investment option among all major demographic groups, with the exception of lower-income Americans, who are divided about evenly between real estate, stocks and gold.
- Gallup/Click For Full Report
MONTECITO SALES | DECEMBER
• 805 Ayala Lane was previously offered at $23,500,000 for 191 days on market. Off Market sale of $15,400,000 is 66% of original list price.
• DOM = Days on Market
HOPE RANCH
YEAR END REPORT 2022 | In Review
Single Family Residences + Condominiums (separated sales)
TOTAL YTD 2022 SALES
28
SINGLE FAMILY RESIDENCES
TOTAL YTD SALES
28
AVERAGE SALES PRICE
$7,964,873
MEDIAN SALES PRICE
$5,625,000
CONDOMINIUM HOMES
TOTAL YTD SALES n/a
AVERAGE SALES PRICE n/a
MEDIAN SALES PRICE n/a
HOPE RANCH
DECEMBER 2022 | In Review
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES
0
AVERAGE SALES PRICE
0% change from 2021 n/a
MEDIAN SALES PRICE
0% change from 2021 n/a
HIGHEST SALES PRICE n/a
LOWEST SALES PRICE n/a
Click for Real Time Market Data
SANTA BARBARA
SANTA BARBARA
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES
30
AVERAGE SALES PRICE
+24% change from 2021 $2,024,115
MEDIAN SALES PRICE
+4% change from 2021 $1,530,000
HIGHEST SALES PRICE
2001 Las Tunas Road Santa Barbara CA 93103
$6,300,000
LOWEST SALES PRICE
129 East Micheltorena Street, #7 Santa Barbara CA 93101
$644,000
Condominium Home
Click for Real Time
Market Data
SUMMERLAND
DECEMBER 2022 | In Review
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES
2
AVERAGE SALES PRICE
0% change from 2021
$2,768,785
MEDIAN SALES PRICE
0% change from 2021
$2,768,785
HIGHEST SALES PRICE
2540 Whitney Avenue
Summerland, CA 93067
$3,225,000
LOWEST SALES PRICE
2540 Varley Street
Summerland, CA 93067
$2,312,570
Click for Real Time Market Data
CARPINTERIA DECEMBER 2022 | In Review
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES
8
AVERAGE SALES PRICE
+1193% change from 2021
$11,784,222
MEDIAN SALES PRICE
+84% change from 2021 $1,304,000
HIGHEST SALES PRICE
2781 Padaro Lane
Carpinteria CA 93013
$69,947,000
LOWEST SALES PRICE
1006 Palmetto Way, Unit D Carpinteria CA 93013
$761,000 Condominium Home
Click for Real Time Market Data
GOLETA
DECEMBER 2022 | In Review
Single Family Residences + Condominiums (combined sales)
TOTAL DECEMBER SALES 21
AVERAGE SALES PRICE
-8% change from 2021
$1,241,869
MEDIAN SALES PRICE
-9% change from 2021
$1,100,000
HIGHEST SALES PRICE
935 North Kellogg Goleta CA 93111
$1,850,000
LOWEST SALES PRICE
520 Pine Avenue, Space 44 Goleta CA 93117
$287,000
Manufactured Home
Click for Real Time Market Data
FEATURED PROPERTIES
SANTA YNEZ VALLEY
YEAR END REPORT 2022 | In Review
Single Family Residences + Condominiums (separated sales)
TOTAL YTD 2022 SALES
221
SINGLE
FAMILY RESIDENCES
TOTAL YTD SALES
195 AVERAGE SALES PRICE
+25% change from 2021
$2,015,041 MEDIAN SALES PRICE +21% change from 2021 $1,500,000
CONDOMINIUM HOMES
TOTAL YTD SALES
26 AVERAGE SALES PRICE
+15% change from 2021
$658,779
MEDIAN SALES PRICE
+12% change from 2021 $670,000
DISCRETION
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VALUE
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Listing your home as a private exclusive allows you to control what information is shared about you and your home while still getting exposure to top agents at Compass.
CONCIERGE Real Estate Service
EXPERT PERSPECTIVE
Now more than ever you need an expert advisor on your side who can provide comprehensive analysis and exclusive insights into today’s fast-paced housing market. We see every luxury property available and know the market. Our commitment to staying educated on what’s happening with economic news, the real estate market, local sales and listings is essential to your success when buying or selling properties.
CONCIERGE SERVICE
We strive to deliver a high level of personalized service—personally! We provide our clients with cutting-edge strategies that produce ideal results. Our exceptional service is driven by efficient communication, understanding your needs and having expansive industry resources— combined with expert knowledge of the extensive contracts and required forms to protect your best interests. The process comes together as a result of our years of successful negotiating which leads to a winning deal. We listen carefully, anticipate your needs, execute the deal and handle all the details. The hard work starts when a contract is in place so you will be happy you chose representation experienced in closing the deal smoothly.
COMMUNITY INVESTMENT
Sell a Home | Build a Home initiative. We are deeply connected and committed to the communities in which we live and work. Haden Homes Luxury Property Group has made a pledge to help individuals with housing needs by partnering with Habitat for Humanity. For every home that our clients buy or sell, Haden Homes makes a donation to Santa Barbara’s Habitat for Humanity.
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CHICAGO TITLE
FIDELITY NATIONAL TITLE SANTA BARBARA MLS
DATA SOURCES | LISTING DISCLOSURE
All information provided is deemed reliable but has not been verified and we do not guarantee it. We recommend that buyers make their own inquiries. Data source Fidelity National Title, Chicago Title and Santa Barbara MLS. INdata Real Estate Market Reporting through December 2022.
Properties featured are courtesy of the Santa Barbara MLS and are available for sale at time of publication. They may be listed by brokers and/or agents other than Compass or Haden Homes Group. Contact us for details or to set up a private showing at 805.880.6530.