One of the most frequent questions I naturally get asked as a real estate professionals is: “What is the market doing / How is the market?”
No matter what you do for a living, it seems that everyone has at minimum a general interest level in how the real estate market in Santa Barbara is doing.
I often write / blog articles that present numbers on amount of sales year to date, prices being up or down, inventory levels etc. What I have learned over the years is that ultimately what most people end up wanting to really know is the following…what is my home currently worth and what are the sales prices of the homes closest to me that have sold. Simple as that.
Since I can not write about everyone’s individual home, some of the best information is a simple general feel and pulse of where the market is at. So here is a quick snapshot of what’s happening in our Santa Barbara real estate market.
The real estate market for single family homes under $1,000,000
The general market for this price point right now is very very strong. Any home that seems fairly priced is generally receiving an offer in the first week, some homes receiving several offers. The market of just getting in, roughly $700,000 to $800,000 is extremely hot. There is not enough inventory for the amount of buyers out there at this price point. Almost all of these homes are tending to sell right away.
The real estate market for single family homes $1,000,000 to $2,500,000
The market for this price point right now seems to be good. There are always buyers out there in this price point, but there is enough inventory at this price level that you have to have your home fairly priced. Homes that are done well, in a good neighborhood, have a general good feel and are priced well tend to also get offers within 1-2 weeks. If you are missing your price point, you will sit in the market and become inventory. Buyers are not worried about more listings coming up in this price range.
The real estate market for single family homes $2,500,000 to $5,000,000
The market for this price point really depends. There is currently a lot of inventory at this price point, with many homes having been on the market for months. If you then look at sales, many of the closed sales were homes that had price reductions or simply accepted lower offers. There are generally always buyers at this price point, but just fewer buyers. Pricing at this level is very important as inventory is showing they will not overpay.
The real estate market for single family homes $5,000,000 and above
After being very slow over the last year, this price level has seemed to pick up in the last several months. We have recorded a decent amount of sales and several other homes are pending sale. On average once you get above the $5 million price point, value is often really determined by timing of the buyer and seller. Often homes swing several million from listing price to sales price and this has to do with several factors including simply timing, impulse etc. At this price level if the timing is right, you can have a home sell for $8 million. If that buyer was not around and timing is off, this same home can sell for $6,500,000 a few months later.