In the first quarter report published in mid-April I stated that while the extreme seller’s market was still firmly in place, there were “a few subtle signs that might lead to some normalization.”  As of this writing in mid-July it is clear that these signs are no longer subtle, and the market has officially shifted to one that is much more balanced.
 
There were 46 sales with a median price of $3,250,000 in the Riviera/El Cielito/Eucalyptus Hill neighborhoods recorded in the first half of 2022.  While this is still a significant 20% increase in the median price compared to last year, it is only slightly above the first quarter number.  Additionally, the total number of sales is down about 27% compared to the first half of 2021 and there are far fewer “off market” transactions along with virtually no homes selling for more than the asking price in the last few months.  Another sure sign of a market in transition is that the 17 currently available listings have been on the market for an average of 56 days and nearly half of these have undergone listing price reductions.
 
For those of you who have been waiting for the Santa Barbara real estate market to “peak” before considering the sale of your home, these numbers illustrate that the shift has taken place.  The next question is when will we transition from a seller’s market to one in which buyers have more control.  This has definitely not occurred yet, as there is still strong demand for Santa Barbara homes that are priced correctly.  In conclusion, while we are no longer experiencing an extreme market favoring sellers, this is still an unprecedented time to achieve a quick sale with a strong price for your Santa Barbara real estate.