3rd Quarter 2021
Nationwide
Although nationwide sales declined slightly during the first half of 2021, Median Sale Price hit an all-time high, climbing over 23% from a year ago. This 23.6% gain is an all-time record for a year-over-year price increase. (A typical homebuyer who bought a home a year ago and put 20% down has already more than doubled their money!) We have had 111 straight months of year-over-year price gains since March 2012. The dip in sales is largely due to a shortage of available inventory - supply is down over 20% compared to a year ago. Declining affordability is also squeezing some homebuyers out of the market.
According to the Chief Economist of the National Association of Realtors, “The market’s outlook is encouraging. Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.”
Santa Barbara - South Coast
The local real estate market was the strongest it has ever been during the first half of 2021, as sales and prices soared. Total Active Listings rose 17% to 1284, but this was not near enough to keep up with the increased demand. The Number Sold jumped 64%, to 1052, leaving inventory levels at an all-time low. Prices went through the roof as Average Sale Price skyrocketed 58% to $2,511,462, and Median Sale Price climbed 38% to $1,523,250. Sold Volume catapulted 160% to $2,642,058,152. On average, properties sold for 100% of their last list price - an improvement of 5% compared to a year ago. The largest sale during the first half of 2021 was 1655 Fernald Point Ln for $45,000,000.
Montecito
The Montecito real estate market was white-hot during the first half of 2021. The scant increase of 8% in Total Active Listings was eclipsed by the 94% jump in the Number Sold! Inventory levels are the lowest they have ever been, leaving would-be Buyers scrambling to try and get a home in this ultra-desirable community. Strong demand pushed prices into the stratosphere as Average Sale Price improved 62% to $5,875,469, and Median Sale Price gained 50% to $4,325,000! Perhaps the biggest story is the increase of 216% in Sold Volume, as $1,163,342,966 in Montecito real estate changed hands during the first half alone in 2021. On average, properties sold for 97% of their last list price - an improvement of 6% compared to a year ago.
I expect demand to continue to exceed the supply of homes for sale, which will continue to push prices upward into the 3rd Quarter.
San Roque
Activity in San Roque (MLS Area 15) was strong during the first half of 2021 as selection of homes offered for sale was not nearly enough to keep up with demand. Although Total Active Listings increased 24% to 318, the Number Sold jumped 80% as 265 properties traded hands. Average Sale Price improved 34% to $1,872,839, and Median Sale Price increased 39% to $1,675,000. Sold Volume climbed an astounding 142% to $496,302,488. On average, properties in the MLS Area 15 sold for 101% of their asking price - an increase of 5% compared to a year ago. The largest sale so far this year in San Roque was 234 Canon Drive for $3,700,000.
Upper East
Activity in the Upper East (MLS Area 15) was strong during the first half of 2021 as selection of homes offered for sale was not nearly enough to keep up with demand. Although Total Active Listings increased 24% to 318, the Number Sold jumped 80% as 265 properties traded hands. Average Sale Price improved 34% to $1,872,839, and Median Sale Price increased 39% to $1,675,000. Sold Volume climbed an astounding 142% to $496,302,488. On average, properties in the MLS Area 15 sold for 101% of their asking price - an increase of 5% compared to a year ago. The largest sale so far this year in the Upper East was 2050 Garden Street for $3,950,000.
Riviera
Activity on the Riviera (MLS Area 15) was strong during the first half of 2021 as selection of homes offered for sale was not nearly enough to keep up with demand. Although Total Active Listings increased 24% to 318, the Number Sold jumped 80% as 265 properties traded hands. Average Sale Price improved 34% to $1,872,839, and Median Sale Price increased 39% to $1,675,000. Sold Volume climbed an astounding 142% to $496,302,488. On average, properties in the MLS Area 15 sold for 101% of their asking price - an increase of 5% compared to a year ago. The largest sale so far this year on the Riviera was 1915 Las Tunas Road for $9,590,000.
Mesa
Activity on the Mesa (MLS Area 20) was solid during the first half of the year as strong Buyer demand exceeded the supply of homes offered for sale and prices rose. Total Active Listings increased 20% to 233. The Number Sold jumped 39% as 185 properties traded hands. Average Sale Price climbed 38% to $1,634,194 and Median Sale Price improved 29% to $302,326,047. On average, properties in MLS Area 20 sold for 102 % of their last list price (can you say “Bidding Wars”?) The largest sale so far this year on the Mesa was 1631 Shoreline Drive for $8,855,000.
Samarkand
Activity in Samarkand (MLS Area 20) was solid during the first half of the year as strong Buyer demand exceeded the supply of homes offered for sale and prices rose. Total Active Listings increased 20% to 233. The Number Sold jumped 39% as 185 properties traded hands. Average Sale Price climbed 38% to $1,634,194 and Median Sale Price improved 29% to $302,326,047. On average, properties in MLS Area 20 sold for 102 % of their last list price (can you say “Bidding Wars”?) The largest sale so far this year in Samarkand was 2719 Clinton Terrace for $1,850,000.
Santa Barbara Foothills/Goleta North
Sales were extremely strong in the Santa Barbara Foothills/Goleta North (MLS Area 35) during the first half of 2021.
Total Active Listings increased 27% - this was more than any other community along the South Coast. Improved selection led
to increased sales, and the Number Sold skyrocketed 72% as 193 properties traded hands! Prices rose, as Average Sale Price bumped up 15% to $1,210,617 and Median Sale Price climbed 17% to $1,000,000. Sold Volume jumped 98% to $233,649,129. On average, properties in MLS Area 35 sold for 103% of their last list price - WOW! The largest sale was 6210 Sunset Ridge Rd. for $5,000,000.
Birnam Wood Golf Club
Birnam Wood Golf Club enjoyed a dynamic 2nd Quarter, as eight properties traded hands - that is more sales in one quarter than there were in all of 2020! 2120 Ten Acre Road sold for $3,220,468; 533 Las Fuentes Drive for $3,785,666; 2081 China Flat Road for $4,125,000; 516 Crocker Sperry Drive for $4,235,000; 2109 Stratford Place for $4,600,000; 2123 Forge Road for $4,600,000; 475 Crocker Sperry Drive for $5,350,000; and 1987 Birnam Wood Drive for $6,900,000.
There are currently three Active Listings in Birnam Wood: 2010 Birnam Wood Drive for $5,595,000; 513 Crocker Sperry Drive for $5,795,000; and, 2069 China Flat Road for $8,500,000. There are presently no Pending Sales in Birnam Wood. Like most areas along the South Coast, we need more Listings in Birnam Wood to keep up with the strong Buyer demand.
Hope Ranch
Hope Ranch experienced very little improvement in supply of homes offered for sale, and strong Buyer demand, resulting in increased prices and a significant shortage of inventory. Total Active Listings rose a scant 2% to 35. Sales were robust - the Number Sold skyrocketed 225% as 39 properties traded hands. Average Sale Price jumped 40% to $5,378,627 and Median Sale Price improved 35% to $4,500,000. Sold Volume went through the roof, increasing 355% to $209,766,464! On average, properties in Hope Ranch sold for 99% of their last list price - a jump of 10%. The largest sale in Hope Ranch so far this year was 4305 Marina Drive for $25,373,227.
Sincerely,
Daniel Encell
Director, Estates Division
Berkshire Hathaway HomeServices
(805) 565-4896
P.S. If you are considering selling, you need a strong agent with precise market knowledge, and superior marketing, advertising, and negotiation skills. In 34 years, I have sold more Montecito properties than any other agent – over $1.8 billion in local sales. Creative marketing, extensive advertising, and good old fashioned hard work get the best results in any market! Please call me at (805) 565-4896 or email me at danencell@aol.com. All calls will be confidential.
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