Market Report | South Santa Barbara County | September 2022

SUPERIOR COURT OF SANTA BARBARA COUNTY | LABOR DAY 2022

Hello Family and Friends -

In the third quarter of 2022, desire to live in our beautiful community is still strong while the year long low inventory of homes continues. Be sure to check our our “In the News” section at the end and let us know your predictions moving forward.

September brought only 85 new single family homes (SFH) to our market. Even though inventory is down, we are seeing that buyers have gained back some leverage in negotiations and are able to take their time to make a better buying decision. The numbers tell the story - let’s compare September 2022 to 2021:

• 32% Increase in homes falling out of escrow and going back on the market

• 39% longer days on market so homes are not selling as fast

• 68% increase in price reductions compared to this time last year

Increased interest rates may also impact both buyer and seller activity. In stark contrast to the frenzy of COVID years, we see a noticeable lack of urgency from buyers who closely monitor market and economic indicators when making a real estate decision. On the seller side, owners who have locked in low interest rates are unlikely to sell in the near future. This will continue to limit inventory and support our real estate prices.

Taking it all in, we still feel this is a good time to buy and sell. Sales are strong and homes that are well priced are still selling quickly – 87% of properties listed in September have sold and at 98% of the final list price. Even while sellers are reducing the price of their homes more frequently, they are still closing for record prices with the median SFH sales price YTD at $2,200,000 (16% over September 2021). There are still good buys to be had for buyers if you understand value and know the area. This is where we excel in helping clients - we know the inventory, our neighborhoods and this market. Our focus is on investment grade properties that will go up in value over time. We can also put together off market deals (17 homes traded off market last month). Zillow or online search sites can not help you accomplish these goals. If you are thinking of buying, make sure you know all the options including our Compass Private Exclusive properties (off-market inventory/pocket listings). When deciding to sell, homeowners now need to be realistic on pricing since we are seeing more and more price reductions each week. Buyers are sophisticated and understand value so you don’t want to be overlooked, then find your home sitting and becoming stale which often leads to a lower sales price. Working with an experienced team like us who understands how to position and market your home will give you the best chance to realize the highest price with the most favorable terms. In this market, experience matters. We offer concierge level professional service to our clients with worldclass marketing, a proven track record of success, the skills necessary to put complicated deals together and negotiate the price and terms that will get your offer accepted amongst multiple offers. Our goal is to get you the best price for your existing home and find you the right replacement property with minimal stress. Let’s explore your property’s current valuation and discuss a strategy.

Looking for professional + creative results-oriented representation - Let’s Talk!

Randy and Molly

BANDIT BRINGING IN THE FALL SEASON | EL ENCANTO RESORT | SANTA BARBARA

SANTA

LILLY PONT AT THE SAN YSIDRO RANCH | MONTECITO

SANTA BARBARA

ROSEWOOD MIRAMAR BEACH HOTEL | MONTECITO

Let’s discuss your long-term goals —

Historically, owning property has served as a great investment. Very few people own a home for 2-3 years. Most live in their home for 7-13 years. Almost all homes bought in 2007, prior to the Great Recession, recovered fully and escalated in value. Those owners built equity and were not paying (rising) rent to a landlord.

MONTECITO SALES | SEPTEMBER

Address List Price Sold Price % to List DOM

848 Hot Springs Road Off Market $36,000,000 100% 1 838 Knapp Drive $22,500,000 $18,250,000 81% 42

1284 Mesa Road Off Market $14,500,000 100% 1 260 Oak Road $14,795,000 $13,600,000 92% 17 210 Miramar Avenue Off Market $9,100,000 100% 1

290 Sheffield Drive $8,950,000 $9,000,000 101% 4 207 Eucalyptus Hill Drive $7,975,000 $7,900,000 99% 14

495 Santa Rosa Lane $8,995,000 $7,350,000 82% 77

145 Olive Mill Lane $5,550,000 $5,550,000 100% 26 1944 East Valley Road $5,450,000 $5,400,000 99% 19

125 Santa Isabel Lane Off Market $4,400,000 100% 1 950 Arcady Road $4,250,000 $4,035,000 95% 17

505 El Bosque Road $3,650,000 $3,500,000 96% 40

1517 East Valley Road, B $3,500,000 $3,500,000 100% 6

565 El Bosque Road $3,195,000 $2,900,000 91% 24

585 Sycamore Vista Road $2,195,000 $2,078,000 95% 23

* DOM = Days on Market

SANTA BARBARA

ICONIC RED TILE ROOFTOPS | SANTA BARBARA

SANTA BARBARA

EAST BEACH STROLL | SANTA BARBARA

SANTA

CLIFF SIDE BLUFFS OVERLOOKING PACIFIC OCEAN | HOPE RANCH

SANTA

CLIFF SIDE BLUFFS OVERLOOKING PACIFIC OCEAN | HOPE RANCH

SUMMERLAND BEACH | DRIFTWOOD ABUNDANCE | SUMMERLAND

SOUTH SANTA BARBARA COUNTY

SURF’S UP | SUMMERLAND BEACH

FARMERS MARKET | CARPINTERIA

SANTA BARBARA

SANDPIPER GOLF CLUB | GOLETA

34 SOUTH SANTA BARBARA COUNTY MARKET REPORT | SEPTEMBER 2022

BUTTERFLY PRESERVE + PATH TO SANTA BARBARA SHORES COUNTY PARK | 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.

Listing

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 September 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.