The last bottom of the Santa Barbara real estate market was in 2011, so we will soon be ending our fifth full year of rising home price and a defined Seller’s Market. We have seen low inventory levels, high buyer demand, and appreciation rates that have gone from double digit in the first few years of the market rise, to single digit appreciation numbers the last year or two. Historically, Santa Barbara real estate up or appreciating cycles have ranged from 5-10 years, while down or depreciating typically are shorter in the 4-6 year range.
Right now, we are at an interesting juncture in the market. Just this Summer we have started to see some mixed signals. We are still in a healthy market, and while many of our listings are still selling quickly with multiple offers, the overall market has seen a slowing of home sales, an increase in the number of days on the market, and inventory levels rising. It’s possible this is a short term “blip” with a slower than normal Summer market, however it could also be more of a long term trend signaling a market shift, or just a natural, and healthy, slowing of the market. If the latter, that gentle slowing of the market will give buyers and sellers both more time to make informed real estate decisions without as much “speculation” with buyers trying play the real estate market like the stock market.
Even with the slightly tempering real estate market, the Zia Group’s first half of the year included 27 sales, more than any other agent or team in the prestigious Santa Barbara Market. Even with rising inventory, a lot of buyers still have not been able to find the right home. As such, our team continues to track over 100 homes that are currently not on the market and every month we see between 15-20% of the homes in our area sell “off market”. If you are only “shopping online” for your next home, you could be missing out on a large number of opportunities.
While we may see our real estate market continue to rise and appreciation for a number of more years, these conflicting market signals make your relationship and communication with your real estate adviser even more critical. If you have any plans to buy or sell a home, or invest in real estate, reach out to us here at the Zia Group for a confidential and complimentary consultation so we can walk you through how the nuances of the market may affect your real estate goals and strategy.
During the second quarter of this year, the volume of single-family residences coming on the market increased by 11% from this time last year. The volume in which these homes traded hands decreased by 4% from the second quarter of 2015, with 307 sales, while the median sales price stayed relatively the same during the same period, at an average valuation of $732/SF.
The Condo market continues to be strong in terms of value, with the median price increasing by 8% to $644,500 compared to this same time last year. This represents an average valuation of $566/SF, which is a 6% increase over this time last year. The sales pace has seen a significant jump over the first quarter of 2016 up to 139 transactions, representing a 64% increase.
The Zia Group has had the privilege to represent some of the finest homes in the Santa Barbara area. Our passion for the community extends not only to our Santa Barbara community but around the world. We will be sharing more about our impact in these communities along with some exciting new ways we will be making an impact in them.
Chief Executive Officer