In the past two months home sales in the Santa Barbara area have seen some interesting change. The first quarter median home price came in at a record setting $1,433,250 for 2018, a 7% gain over the first quarter of last year. Now the year-to-date median home price is at $1,300,000, which is a slight decline from the same period a year ago, and quite a drop from the first quarter. We haven’t seen a median price drop in the area in quite some time, alongside an increase in number of new listings, which currently there are 4% more of than a year ago.
Santa Barbara’s Westside is now showing a year-to-date decrease in number of sales over last year after showing an increase in the first quarter. The only areas now showing an increased number of sales for the year are Hope Ranch and North Goleta. Montecito has moved into first position for the biggest decrease in number of sales at 36%.
A hot topic around town right how is price reductions. Of the 285 homes listed in the past 45 days, over half (144) have already been reduced from their original asking price. A contributor to this is seller overpricing, which has been tempting for sellers to do given the area’s historically low inventory and continued demand.
Most national analysts feel that traditional indicators have not yet pointed to the start of a housing market correction, although most all agree that where you’re located has a big effect on where you lie in the cycle, and to keep an eye open for signs of change. We look forward to keeping you updated with the most current and accurate information on the Santa Barbara real estate market, and appreciate the opportunity to assist with your inquiries and needs.