Market Report | South Santa Barbara County | May 2022

May 2022

CARUSO’S BAR AT ROSEWOOD MIRAMAR BEACH RESORT | MONTECITO

Hello Family and Friends -

The Hottest seller’s market in history BUT is the Housing Boom looking like a Bust . . . It has definitely been remarkable but are there cracks in the foundation? As the summer weather heats up, we see hints of the market gradually cooling off. There are multiple national news reports every day now predicting the market is shifting into a more balanced environment with fewer sales and price reductions becoming more common. See the “In The News” section below.

This is great news for many of our buyers who have been discouraged by the hyper-competitive market and the reality of competing against 10+ offers. We have noticed that today’s buyers are transforming into more careful consumers by being patients and coming in more conservatively with offers. Home sellers may have to be more realistic with pricing strategy, even though there is still far more demand than supply. That said, we are seeing more inventory becoming available daily with a year high of 195 Total Active Listings and 57 New Listings last week alone. Although it remains a seller’s market, we are trending toward more inventory which means increased competition so perhaps buyers could regain negotiation leverage shortly. Sellers can still be optimistic because our market remains strong looking at the 5-year number (below), most properties have benefited from appreciation and there is still a strong desire to live in our beautiful community.

Let’s Take A Look At The Numbers | There were 140 total sales in May, keeping pace month over month with the 136 total sales completed in April. Yet, there were only 92 single-family homes sold in May of this year - down 42% from the 159 sold in May 2021 which was an outlier year compared to the past 5 years (see graph below). The nearly half cut in homes sold is a good indicator of a market that’s correcting toward a more normal market.

The Average Sales Price for a single-family home fell half a million from $3.7M in April to $3.2M in May. We know that it only takes a few sales the Hope Ranch or Montecito luxury estates to skew this average sales price, but it’s still a statistic to keep in mind. The Median Sales Price has also dropped from $2,425,000 in April to $2,225,000 in May. 26% of all transactions in May were all-cash offers, only 3% higher than in April.

Hot

Off The Press | Industry News to Keep You in the Know (click for full article):

Blog Post

Realtor Mag CAR

Home Price Deceleration Does Not Mean Home Price Depreciation

Fed’s Aggressive Rate Hike May Influence ‘Shrinking Buyer Pool

May Home Sales and Price Report California

Morgan Stanley CNBC

Housing Outlook 2022: Prices Rising, Not Bubble

Mortgage Demand Falls to the Lowest Level in 22 Years

Home Sellers Can’t Be Greedy Anymore Realtor Mag

Overall, short monthly samples are compelling but not ideal since they do not predict what will ultimately happen but the housing market is still one of the brightest spots of the US economy. With the lack of inventory and competitive nature of the market right now, it is more important than ever to work with professionals who know the business and can help you make a good long term investment. Looking for professional + creative results orientated representation - Let’s Talk!

and Molly

SANTA BARBARA

PATH TO PARADISE | MONTECITO

MONTECITO SALES | MAY

Address List Price Sold Price % to List DOM

2145 Forge Road Off Market $15,050,000 100% 1 1741 Glen Oaks Drive Off Market $13,000,000 100% 1 995 Lilac Drive $12,450,000 $12,950,888 104% 2 1885 Jelinda Drive $15,750,000 $12,669,000 80% 21 118 Pomar Lane Off Market $8,088,000 100% 1 1749 Glen Oaks Drive $6,500,000 $7,150,000 110% 1 974 Park Lane $6,200,000 $6,225,000 100% 38 1730 Glen Oaks Drive $4,995,000 $5,250,000 105% 8 895 East Mountain Drive $4,500,000 $4,400,000 98% 15 320 East Mountain Drive $4,725,000 $4,300,000 91% 83 903 Chelham Way $2,995,000 $2,995,000 100% 11 921 El Rancho Road $2,700,000 $2,951,000 109% 13 1274 Eleven Oaks Lane $3,095,000 $2,680,000 87% 244 480 Toro Canyon Road $2,395,000 $2,200,000 92% 7 651 Circle Drive Off Market $2,100,000 100% 1 1220 Coast Village Rd-301 $1,695,000 $1,735,000 102% 4

* DOM = Days on Market

SANTA BARBARA

VIEW FROM CLIFF DRIVE | SANTA BARBARA

HOPE RANCH BEACH LIFEGUARD STAND | HOPE RANCH

SUMMERLAND BEACH | DRIFTWOOD ABUNDANCE | SUMMERLAND

THE WORLD’S SAFEST BEACH + BANDIT | CARPINTERIA

SANTA

SANDPIPER GOLF CLUB I | GOLETA

DISCRETION

Privacy is the Ultimate Commodity And the Decision to Sell Your Home Is a Personal One.

FLEXIBILITY

Decide When to Share Details About Your Home - Including PriceMore Expansively On Your Own Timing.

QUALITY

Exclusive Exposure To Compass Agents, Including Premium Placements On Agent Facing Platform.

VALUE

Get the Best Offer by Testing The Market Privately to Gather Key Insights Without Your Listing Getting Stale or Overexposed.

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. 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.

CONCIERGE SERVICE

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.

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 May 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 Luxury Property Group. Contact us for details or to set up a private showing at 805.880.6530.