3rd Quarter 2022
Nationwide
Rapidly rising interest rates during the first half of 2022 effectively cooled the hottest Seller’s Market ever experienced in this country. Mortgage rates are currently up over 75% compared to 2021 levels. That steep increase significantly reduced would-be Buyers spending power and pushed the dream of home ownership out of reach for many. The decrease in demand for housing has returned the nationwide market to a much more balanced market. The combination of continued tight supply of homes offered for sale, and reduced Buyer demand has resulted in a decline in the number of sales. However, prices are still at record highs. According to the National Association of Realtors, “Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates. Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially – almost doubling – to cool home prices appreciation and provide more options for home buyers.”
Santa Barbara - South Coast
It seems safe to say that the post-covid “Auction Real Estate Market” that we have been experiencing the past two years is over. Although supply and demand market forces still seem to favor Sellers, the feeling of an out-of-control frenzy has ended. Prices are still strong, and we are still seeing multiple offers and over-asking sales on attractively priced properties, but there are fewer Buyers, and they are more pragmatic. During the first half of 2022 Total Active Listings fell 21% to 976 properties. The Number Sold declined 26% to 788. Average Sale Price rose 9% to $2,712,119 and Median Sale Price jumped 19% to $1,797,500! Sold Volume slipped 19% to $2,137,149,378. On average, properties along the South Coast still sold for 102% of their last list price – an increase of 2% compared to a year ago. The largest sale so far in 2022 was 700 Picacho Lane for $52,000,000.
Montecito
Like most areas along the South Coast, the first half of 2022 in Montecito can be easily summarized – less inventory, fewer sales, and continued record-setting prices. Total Active Listings, 156, are down 29% compared to a year ago. The Number Sold dropped 40% to 117 properties. However, prices remain strong, with Average Sale Price rising 13% to $6,662,006 and Median Sale Price climbing 15% to $4,975,000. Sold Volume fell 32% to $779,454,706. On average, homes in Montecito sold for 98% of their last list price – an improvement of 1% compared to a year ago. The largest sale in Montecito so far in 2022 was 700 Picacho Lane at $52,000,000.
San Roque
Like most areas along the South Coast, the first half of 2022 for San Roque (MLS Area 15) can be easily summarized: less inventory, fewer sales, and continued record-setting prices, Total Active Listings, 228, fell 25% compared to a year ago. The Number Sold, 172, plummeted 35%. However, prices skyrocketed as Average Sale Price jumped 23% to $2,308,742 and Median Sale Price climbed 19% to $2,002,506. Sold Volume slid 19% to $397,103,763. Multiple offers and overbids were still prevalent, as properties in MLS Area 15 sold, on average, for 106% of their last list price – an increase of 4% compared to a year ago. The largest sale in San Roque was 3630 San Remo Drive for $3,750,000.
Upper East
Like most areas along the South Coast, the first half of 2022 for the Upper East (MLS Area 15) can be easily summarized: less inventory, fewer sales, and continued record-setting prices, Total Active Listings, 228, fell 25% compared to a year ago. The Number Sold, 172, plummeted 35%. However, prices skyrocketed as Average Sale Price jumped 23% to $2,308,742 and Median Sale Price climbed 19% to $2,002,506. Sold Volume slid 19% to $397,103,763. Multiple offers and overbids were still prevalent, as properties in MLS Area 15 sold, on average, for 106% of their last list price – an increase of 4% compared to a year ago. The largest sale in the Upper East was 2014 Garden Street for $5,442,000.
Riviera
Like most areas along the South Coast, the first half of 2022 for the Riviera (MLS Area 15) can be easily summarized: less inventory, fewer sales, and continued record-setting prices, Total Active Listings, 228, fell 25% compared to a year ago. The Number Sold, 172, plummeted 35%. However, prices skyrocketed as Average Sale Price jumped 23% to $2,308,742 and Median Sale Price climbed 19% to $2,002,506. Sold Volume slid 19% to $397,103,763. Multiple offers and overbids were still prevalent, as properties in MLS Area 15 sold, on average, for 106% of their last list price – an increase of 4% compared to a year ago. The largest sale on the Riviera was 1181 Las Alturas Road for $4,650,000.
Mesa
Activity on the Mesa (MLS Area 20) was some of the strongest overall along the South Coast during the first half of 2022. Less selection resulted in fewer sales, but prices skyrocketed! Total Active Listings fell 23% to 173 properties. The Number Sold dropped 22% as 145 properties traded hands. Average Sale Price exploded, rising 35% to $2,208,124, while Median Sale Price jumped 28% to $1,785,000! Sold Volume rose 5% to $320,178,040. On average, properties on the Mesa (MLS Area 20) sold for 104% of their last list price – an increase of 2% compared to a year ago. The largest sale on the Mesa was 3030 Sea Cliff for $11,995,000.
Samarkand
Activity in Samarkand (MLS Area 20) was some of the strongest overall along the South Coast during the first half of 2022. Less selection resulted in fewer sales, but prices skyrocketed! Total Active Listings fell 23% to 173 properties. The Number Sold dropped 22% as 145 properties traded hands. Average Sale Price exploded, rising 35% to $2,208,124, while Median Sale Price jumped 28% to $1,785,000! Sold Volume rose 5% to $320,178,040. On average, properties in Samarkand (MLS Area 20) sold for 104% of their last list price – an increase of 2% compared to a year ago. The largest sale in Samarkand was 3026 Serena Road for $3,400,000.
Bel Air Knolls
Activity in Bel Air Knolls (MLS Area 20) was some of the strongest overall along the South Coast during the first half of 2022. Less selection resulted in fewer sales, but prices skyrocketed! Total Active Listings fell 23% to 173 properties. The Number Sold dropped 22% as 145 properties traded hands. Average Sale Price exploded, rising 35% to $2,208,124, while Median Sale Price jumped 28% to $1,785,000! Sold Volume rose 5% to $320,178,040. On average, properties in Bel Air Knolls (MLS Area 20) sold for 104% of their last list price – an increase of 2% compared to a year ago. The largest sale in Bel Air Knolls was 1144 Portesuello Avenue for $3,200,000.
Hidden Valley
Activity in Hidden Valley (MLS Area 20) was some of the strongest overall along the South Coast during the first half of 2022. Less selection resulted in fewer sales, but prices skyrocketed! Total Active Listings fell 23% to 173 properties. The Number Sold dropped 22% as 145 properties traded hands. Average Sale Price exploded, rising 35% to $2,208,124, while Median Sale Price jumped 28% to $1,785,000! Sold Volume rose 5% to $320,178,040. On average, properties in Hidden Valley (MLS Area 20) sold for 104% of their last list price – an increase of 2% compared to a year ago. The largest sale in Hidden Valley was 921 Barcelona Drive for $2,200,000.
Santa Barbara Foothills/Goleta North
During the first half of 2022, inventory was tight, sales declined, but prices skyrocketed in the Santa Barbara Foothills/Goleta North areas within MLS Area 35. Total Active Listings, 179, fell 14%. The Number Sold dropped 18% as 160 properties traded hands. Multiple offers and bidding wars were common, pushing Average Sale Price up 23% to $1,484,785 and Median Sale Price up 34% to $1,341,500! Sold Volume inched up slightly to $237,565,607. On average, properties in MLS Area 35 sold for 104% of their last list price – an increase of 1% compared to a year ago. The largest sale in Santa Barbara Foothills/Goleta North was 4488 La Paloma Avenue for $4,700,000.
Birnam Wood Golf Club
Limited selection of homes for sale in Birnam Wood continues to hamper sales, as only three homes have sold so far in 2022. There are currently only two Active Listings – 2150 Ten Acre Road for $6,125,000; and 1917 Boundary Drive for $29,500,000. The sales so far in 2022 are: 2062 China Flat Road for $6,350,000; 2049 Boundary Drive for $7,250,000; and, 2145 Forge for $15,050,000. There is plenty of Buyer demand for Birnam Wood – we just need more listings!
Hope Ranch
Although listings and sales both declined in Hope Ranch (MLS Area 25) during the first half of 2022, prices went through the roof! Total Active Listings, 24, fell 31%. Without sufficient selection, the Number Sold declined 52% as only 18 properties traded hands. Competition was fierce for those few properties that did sell, as multiple offers and overbids were common. Average Sale Price skyrocketed 39% to $7,441,469 and Median Sale Price jumped 31% to $5,937,500. Sold Volume dropped 33% to $133,946,450. On average, properties in Hope Ranch sold for 101% of their last list price – an increase of 2% compared to the same time last year. The largest sale in Hope Ranch was 4045 Cuervo Avenue for $18,500,000.
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 $1.9 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.
*(In actuality, these figures are low, as there were five Montecito sales in 2020 above $26,000,000 that were not reported through the MLS, so they are not included in the Average Sale Price or the Sold Volume figures)
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