2nd Quarter 2022
Nationwide
Although the nationwide real estate market was still dominated by tight inventory and rising prices during the first quarter of 2022, there was a significant rise in mortgage interest rates which, if unchecked, will start to show it’s effect during the latter part of the year. The median home sale price is up about 15% compared to a year ago. This marks 120 consecutive months of year-over-year price increases. Conversely, inventory levels are down more than 15% compared to the same period. According to the National Association of Realtors, “Housing affordability continues to be a major challenge as buyers are getting a double whammy: rising mortgage rates and sustained price increases… monthly payments have risen 28% from one year ago.” The rising cost of home ownership will, over time, slow the pace of price appreciation, nationwide.
Santa Barbara - South Coast
The severe shortage of inventory was the most dominant feature of our local real estate market during the first quarter of 2022. Total Active Listings declined 21% compared to a year ago (and they were already at historically low levels then!) Limited selection resulted in a significant drop in sales, as the Number Sold fell 21% to 379 properties. Despite the lack of properties for sale, there was no shortage of demand as aggressive Buyers pushed prices upward. Average Sale Price climbed 7% to $2,730,864, and Median Sale Price jumped 19% to $1,775,000 – both new records! Overall Sold Volume slipped 15% to $1,034,997,410. On average, properties sold for 102% of their last list price – an increase of 3% compared to a year ago. The largest sale along the South Coast was 700 Picacho Lane for $52,000,000.
Montecito
The strong Montecito real estate market continued to steamroll through the first quarter of 2022.
The extreme shortage of properties offered for sale resulted in fewer sales and skyrocketing prices. Total Active Listings plummeted 33%. There was a direct correlation of sales and selection, as the Number Sold also declined 33% to 61 properties. Prices continued to set new records, as Average Sale Price climbed 14% to $6,822,808 and Median Sale Price jumped 25% to $5,200,000. Overall Sold Volume dropped 24% to $416,191,300. On average, properties in Montecito sold for 98% of their last list price – an increase of 1% compared to a year ago. The largest sale in Montecito was 700 Picacho Lane for $52,000,000.
San Roque
Sales were off, due to limited selection, but prices were through the roof in San Roque (MLS Area 15) during the first quarter of 2022. Total Active Listings fell 20% to 119. The Number Sold dropped 29% as 85 properties traded hands. Average Sale Price jumped 18% to 2,167,453. Median Sale Price skyrocketed 30% to $1,975,000. Overall Sold Volume declined 16% to $184,233,510. On average, properties in MLS Area 15 sold for an astounding 107% of their last list price – an increase of 7% compared to a year ago. The largest sale in San Roque was 3710 Brent Street for $3,050,000.
Upper East
Sales were off, due to limited selection, but prices were through the roof in the Upper East (MLS Area 15) during the first quarter of 2022. Total Active Listings fell 20% to 119. The Number Sold dropped 29% as 85 properties traded hands. Average Sale Price jumped 18% to 2,167,453. Median Sale Price skyrocketed 30% to $1,975,000. Overall Sold Volume declined 16% to $184,233,510. On average, properties in MLS Area 15 sold for an astounding 107% of their last list price – an increase of 7% compared to a year ago.
Riviera
Sales were off, due to limited selection, but prices were through the roof on the Riviera (MLS Area 15) during the first quarter of 2022. Total Active Listings fell 20% to 119. The Number Sold dropped 29% as 85 properties traded hands. Average Sale Price jumped 18% to 2,167,453. Median Sale Price skyrocketed 30% to $1,975,000. Overall Sold Volume declined 16% to $184,233,510. On average, properties in MLS Area 15 sold for an astounding 107% of their last list price – an increase of 7% compared to a year ago.
Mesa
Activity on the Mesa (MLS Area 20) was red-hot during the first quarter of 2022. Inventory levels were bleak, as Total Active Listings dropped 27% to 85 properties. The Number Sold fell 6% to 76. Strong Buyer demand pushed prices through the roof as Average Sale Price skyrocketed 66% to $2,427,934 and Median Sale Price jumped 31% to $1,792,500. Overall Sold Volume soared 56% to $184,523,040. On average, properties in MLS Area 20 sold for 103% of their last list price – an improvement of 1% compared to a same time last year.
Samarkand
Activity in Samarkand (MLS Area 20) was red-hot during the first quarter of 2022. Inventory levels were bleak, as Total Active Listings dropped 27% to 85 properties. The Number Sold fell 6% to 76. Strong Buyer demand pushed prices through the roof as Average Sale Price skyrocketed 66% to $2,427,934 and Median Sale Price jumped 31% to $1,792,500. Overall Sold Volume soared 56% to $184,523,040. On average, properties in MLS Area 20 sold for 103% of their last list price – an improvement of 1% compared to a same time last year.
Santa Barbara Foothills/Goleta North
MLS Area 35 (compared to the Westerly Santa Barbara Foothills, and Goleta North) enjoyed strong price gains during the 1st Quarter of 2022. Like all areas along the South Coast, inventory levels were down as Total Active Listings declined 11%. The limited selection hampered sales - the Number Sold fell 18% as 70 properties traded hands. Average Sale Price climbed 25% to $1,425,222 and Median Sale Price jumped 41% to $1,272,500! Overall Sold Volume inched up 1% to $99,765,605. On average, properties in MLS Area 35 sold for 104% of their list price – an increase of 4% compared to the same time last year. The largest sale during the 1st Quarter was 4678 Bedrock Court for $3,500,000.
Birnam Wood Golf Club
Birnam Wood is experiencing the same inventory shortage that is hamstringing sales in most real estate markets. There are currently 2 Active Listings in the MLS: 2150 Ten Acre Road for $6,125,000; and 1917 Boundary Drive for $29,500,000. There were 2 closed sales in Birnam Wood during the 1st Quarter – 2062 China Flat Road for $6,350,000; and, 2049 Boundary Drive for $7,250,000. There are currently no MLS Pending Sales in Birnam Wood.
Hope Ranch
Hope Ranch experienced the largest inventory shortage of any community along the South Coast during the 1st Quarter of 2022 as Total Active Listings plummeted 40%. The Number Sold fell 60%, as only 8 properties traded hands. Motivated Buyers competed for the few houses that were available, pushing prices sharply upward. Average Sale Price jumped 18% to $5,585,000 and Median Sale Price skyrocketed 37% to $5,250,000! Overall Sold Volume fell 52% to $44,680,000. On average, properties sold for 101% of their last list price – an increase of 5% compared to a year ago. The largest sale in Hope Ranch was 4180 Cresta Avenue for $9,800,000. Look for prices to rise in the 2nd Quarter as low inventory and strong demand continue to benefit existing homeowners.
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 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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