After the rollercoaster ride that we experienced in 2020, last year’s market soared to extraordinary new heights as the demand for Santa Barbara real estate continued to outpace inventory. The final tallies in the Riviera/El Cielito/Eucalyptus Hill neighborhoods showed a 15% increase in the number of sales and a 26% median price escalation to an all-time high of $2,700,000!
A more refined analysis of the data indicates that most of the increased demand was in the Santa Barbara luxury home segment of the market. The number of sales was up slightly in the $2 - $3 million category, however there were twice as many homes that sold above $3 million compared to 2020. The other interesting trend that accelerated last year was the increased number of “off market” sales that took place. Approximately 23% of the Santa Barbara homes that traded hands in these neighborhoods were not officially on the market. While there are certain circumstances that this type of sale makes sense, I would advise sellers to take advantage of the strong demand by fully exposing their properties to the marketplace with the potential of achieving a selling price well beyond expectations.
As we move forward into 2022 it is clear that the demand for Santa Barbara homes and estates continues to be firmly in place. What is still unclear however, is how things will develop on the supply side of the equation. My expectation is that more homes will come on the market in the ensuing months, as their will be fewer reasons for potential sellers to sit on the sidelines. One of the most compelling reasons to sell your Santa Barbara home in 2022 is that we are still experiencing an extreme sellers’ market that may not continue for much longer.