Highs and Lows of Recent Sales
Let’s dive into this month’s real estate market highlights, starting with the highest and lowest sales:
Highest Sale:
The priciest property sold this October was a stunning Reginald Davis Johnson-designed estate located at 1731 Lasuen Road on the Riviera. This luxurious 4-bedroom, 6-bathroom home sold for $9,900,000, showcasing the allure of Santa Barbara's high-end market.
Lowest Sale:
On the other end of the spectrum, the lowest sale was a charming 2-bedroom, 2-bathroom townhome in Goleta at 7386 Calle Real #14. It closed at $729,000, offering an attainable entry point into the local market.
Sales Trends and Cash Transactions
October saw a significant uptick in activity, with 113 total sales, a 26% increase compared to last year. Breaking this down:
-
Single-Family Residences (SFR): 87 sales, up 24% year-over-year.
-
Condos: 26 sales, marking a 30% increase from last year.
Cash transactions comprised 36% of October’s sales, while year-to-date (YTD) cash deals remain steady at 41%. This reflects a competitive market where cash buyers continue to hold an edge, especially as rates continue to flutter.
Over Asking Sales
21% of October’s transactions closed above the asking price, a testament to the strength of demand for well-priced, desirable properties. That being said, the Sale to List Price ratio is 95.53% and 93% when factoring original list price, indicating that homes without a proper strategy are taking price reductions in order to sell in today's market.
Days on Market and Median Sales Prices
Homes are still moving quickly:
-
Single-Family Residences (SFR): 36 days on average.
-
Condos: 30 days on average.
Median sales prices remain robust:
-
Single-Family Residences (SFR): $2,120,000 which has changed 0% from last year but
-
Condos: $1,230,000. Which is up 36% from last year
Inventory Trends
Inventory levels have risen to 3.14%, a gradual increase signaling more options for buyers. While still below the 6-month benchmark of a balanced market, this slight uptick offers buyers a bit more breathing room to explore options. Sellers have to understand that buyers have more options and to stand out, their home must present extremely well.
What This Means for Buyers and Sellers
For Buyers:
The increase in inventory generally provides more choices but understanding the niche data of your desired market is key. Not all neighborhoods are seeing an increase in inventory and properties are still selling within a month of being listed. Being informed and ready to submit prior to your home search is the best way to stay ahead of the market. Partnering with an experienced agent remains essential for identifying properties, navigating competitive scenarios, especially against cash buyers.
For Sellers:
Even with a rise in inventory, the market remains tilted in favor of sellers. That being said, sellers with the "sellers market mentality" are hurting themselves. Homes that are priced strategically and presented well continue to attract strong interest, with over-asking sales still a notable trend. Those sellers with an outdated mindset are sitting on the market longer, taking price drops and having to negotiate.
Whether you're considering buying, selling, or just keeping an eye on the market, understanding these trends is key. Reach out for personalized insights or guidance to help you achieve your real estate goals in this ever-changing market.
