1st Quarter 2022
California
Despite a severe shortage of inventory, and higher interest rates, the California housing market remains strong. According to the California Association of Realtors Chief Economist, While we believe the market will continue to do well in 2022 as the economy further recovers, a widening imbalance between supply and demand will put upward pressure on prices and create headwinds for housing affordability that could slow sales in the upcoming year. Translation look for fewer sales at higher prices in 2022.
Santa Barbara - South Coast
2021 was another record-smashing year for local real estate as prices continued to skyrocket on a combination of strong Buyer demand and low inventory. Average Sale Price jumped an eye-popping 28% to $2,384,524, led by Montecito and Hope Ranch with increases of 43% and 41% respectively! Median Sale Price soared 20% to $1,475,000. Total Active Listings inched up 1% to 2160. Limited selection did not deter anxious Buyers, as the Number Sold rose 9% to 2107. Overall Sold Volume climbed 40% to $5,024,192,576. (Prior to 2021, we had never even broken the $4 Billion barrier for Sales Volume.) On average, properties sold for 101% of their last list price an improvement of 5% compared to the previous year. The largest sale along the South Coast was 588 Picacho Lane for $55,000,000.
Montecito
The strong real estate market in Montecito continued throughout 2021 as prices reached record-highs. Buyer demand was intense in all price ranges for the coveted 93108 zip code. Total Active Listings dipped 11% in Montecito (the largest decline on the South Coast). This combination of low supply and frenzied demand pushed prices skyward. Average Sale Price jumped 43% to $5,904,069 and Median Sale Price climbed 44% to $4,356,250. Wow! Limited selection resulted in a 5% decline in the Number Sold, as 334 properties changed hands. Sold Volume improved 36% to $1,971,959,245. On average, properties in 93108 sold for 98% of their last list price an increase of 5% compared to a year ago. The largest sale in Montecito was 588 Picacho Lane for $55,000,000.
I expect the Sellers Market to continue into the foreseeable future in Montecito. Look for another year of double-digit price gains for 93108 in 2022.
San Roque
2021 was an excellent year for San Roque (MLS Area 15) as sales and prices both showed solid improvement. Total Active Listings were almost unchanged at 519 properties. Despite a lack of adequate selection, the Number Sold climbed 10% to 512. Average Sale Price rose 22% to $1,903,537 and Median Sale Price jumped 23% to $1,667,500. Sold Volume skyrocketed 35% to $974,611,173. On average, properties in MLS Area 15 sold for 102% of their last list price an increase of 4% over last year. The largest sale in San Roque was 324 Canon Drive for $3,700,000.
Upper East
2021 was an excellent year for the Upper East (MLS Area 15) as sales and prices both showed solid improvement. Total Active Listings were almost unchanged at 519 properties. Despite a lack of adequate selection, the Number Sold climbed 10% to 512. Average Sale Price rose 22% to $1,903,537 and Median Sale Price jumped 23% to $1,667,500. Sold Volume skyrocketed 35% to $974,611,173. On average, properties in MLS Area 15 sold for 102% of their last list price an increase of 4% over last year. The largest sale in the Upper East was 505 East Los Olivos Street for $7,500,000.
Riviera
2021 was an excellent year for the Riviera (MLS Area 15) as sales and prices both showed solid improvement. Total Active Listings were almost unchanged at 519 properties. Despite a lack of adequate selection, the Number Sold climbed 10% to 512. Average Sale Price rose 22% to $1,903,537 and Median Sale Price jumped 23% to $1,667,500. Sold Volume skyrocketed 35% to $974,611,173. On average, properties in MLS Area 15 sold for 102% of their last list price an increase of 4% over last year. The largest sale in the Riviera was 1915 Las Tunas Road for $9,590,000.
Mesa
Activity on the Mesa (MLS Area 20) was frenzied as strong Buyer demand and limited selection pushed prices skyward. Total Active Listings were nearly unchanged at 392. The Number Sold inched up 3% to 387. Multiple offers and bidding wars drove prices through the roof as Average Sale Price jumped 27% to $1,626,254 and Median Sale Price soared 26% to $1,369,000. Sold Volume in MLS Area 20 rose 31% reaching a new record of $629,369,378. On average, properties on the Mesa sold for 102% of their last list price an improvement of 3% compared to a year ago. The largest sale on the Mesa was 1631 Shoreline Drive for $8,855,000.
Samarkand
Activity in Samarkand (MLS Area 20) was frenzied as strong Buyer demand and limited selection pushed prices skyward. Total Active Listings were nearly unchanged at 392. The Number Sold inched up 3% to 387. Multiple offers and bidding wars drove prices through the roof as Average Sale Price jumped 27% to $1,626,254 and Median Sale Price soared 26% to $1,369,000. Sold Volume in MLS Area 20 rose 31% reaching a new record of $629,369,378. On average, properties in Samarkand sold for 102% of their last list price an improvement of 3% compared to a year ago. The largest sale in Samarkand was 419 Stanley Drive for $2,500,000.
Santa Barbara Foothills/Goleta North
The Santa Barbara Foothills/Goleta North (MLS Area 35) saw the largest increase in Total Active Listings and the Number Sold along the South Coast in 2021. While most communities in Santa Barbara saw listings decline, Total Active Listings in MLS Area 35 climbed by 15% to 385. With improved selection, the Number Sold jumped 30% to 388. Average Sale Price climbed 17% to $1,282,459 and Median Sale Price bumped up 9% to $1,025,000. Sold Volume skyrocketed 52% to $497,594,456. The largest sale in MLS Area 35 during 2021 was 1402 North Fairview Ave for $5,400,000.
Birnam Wood Golf Club
2021 was the most active year ever (by far!) in Birnam Wood, as a jaw-dropping 23 properties changed hands! Nearly one in every six homes inside the gates traded in 2021. The lowest priced sale was 2120 Ten Acre Road for $3,220,468; the highest sale was 2080 Birnam Wood Drive for $14,636,745. The Median Sale Price for Birnam Wood was $5,350,000. The Average Sale Price was $5,813,580. Sold Volume was $133,712,351. There is presently only one Active Listing in Birnam Wood 1917 Boundary Drive for $29,500,000.
Hope Ranch
The luxury markets in Hope Ranch and Montecito were the biggest winners along the South Coast in 2021 as strong Buyer demand combined with a shortage of inventory sent prices skyrocketing. Total Active Listings declined 3% in Hope Ranch (MLS Area 25) to 58. Despite the limited selection, the Number Sold climbed 9% to 56. The rise in prices was meteoric, as Average Sale Price jumped 41% to $5,806,346 and Median Sale Price soared 38% to $4,725,000. Sold Volume set a new record, rising 97% to $348,380,778! Overall, properties in Hope Ranch sold for 99% of their last list price an increase of 7% compared to a year ago. The largest sale in Hope Ranch was 4305 Marina Drive for $25,373,227.
Sincerely,
Daniel Encell
Director, Estates Division
Berkshire Hathaway HomeServices
(805) 565-4896
P.S. If 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 over $1.9 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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