Market Snapshot
The third-quarter statistics for the Riviera, Eucalyptus Hill and El Cielito neighborhoods confirm that the Santa Barbara real estate market remains active, however buyers are becoming more selective and increasingly focused on value. A total of 20 properties sold during the quarter, with a median price of $3,200,000. Interestingly, there were no sales below $2 million and just one in the luxury market above $6 million. The majority of homes traded in the $3 to $6 million range.
Buyers Becoming more Selective
Limited inventory continues to give sellers an advantage, but the results from this quarter show that the advantage has limits. Many of the properties that sold were on the market for three months or longer and required price reductions before attracting a buyer. Only one listing sold above its asking price—a noticeable contrast to the stronger multiple-offer activity we have experienced at other points in the last few years. Buyers are continuing to search for the right property, but they are typically unwilling to pursue a listing they consider overpriced.
Savvy Sellers Reaping Benefits
Low inventory remains the overarching dynamic in the Santa Barbara real estate market and should continue to support values. At the same time, the third-quarter results make it clear that pricing and presentation matter. Properties that come to market at an unrealistic price are likely to sit until the price is adjusted, while homes that are positioned correctly and marketed professionally are still generating strong interest. My expectation is that this more price-sensitive environment will continue, creating opportunities for sellers who approach the market strategically.
Opportunities for Buyers and Sellers
Whether you are downsizing, looking for a larger home or considering a move out of the area, the current market still presents a compelling opportunity to generate a record setting price for your home while also being in a favorable negotiating position as a buyer. Feel free to contact me for a confidential consultation to discuss how these market conditions may affect your real estate plans.
