While the first six months of 2024 exemplified a productive real estate market in the Riviera/Eucalyptus Hill/El Cielito neighborhoods, the third quarter showed a significant increase in both sales activity and home values.  The number of sales exceeded the first two quarters by about 30% and the median price escalated to $3,150,000 which is up 7% from 2023.

A closer look at the price categories shows a steady pace of sales in the sub $3 million segment and only one sale in the Santa Barbara luxury market over $6 million.  However, the $3 to $6 million range was very active with a total of 12 sales surpassing each of the first two quarters.  The strong showing in this mid-range category is what prompted a 2% increase in the median price from the first half of the year.  Another observation is that the market dynamic seems to be transitioning from favoring sellers to one that is more balanced.  This is evidenced by an increase in inventory along with listings lingering on the market a bit longer than we experienced earlier in the year.  That being said, there are still a handful of properties that got bid up in price and/or sold within a few weeks after coming to market.

As we enter the holiday season and the final months of 2024, I expect the activity to stay consistent assuming that the level of inventory continues at a healthy pace.  Election dynamics and interest rate fluctuations may affect buyer demand in the next few weeks, however the desirable and well positioned properties will continue to perform well regardless of these external factors.  My experience is that bringing a listing on the market in November and December can be a benefit in that typically there is less competition, and most properties look their best in the clear and crisp weather at this time of year.  Feel free to reach out to me for a consultation or with any of your real estate questions.