1st Quarter of 2021 Market Summary

Undoubtably, 2020 was an unprecedented year from start to finish. The market paused early in Q2 of 2020 as a direct result of the pandemic. However, in Q3 of 2020, an exodus of families moved out of metropolitan regions and into the Santa Barbara area. This unprecedented migration caused an extreme shift in the market. Abruptly, the market transitioned from a ‘buyer’s market’ to a ‘seller’s market’ seemingly overnight. These buyers differed from previous years. Rather than needing to apply for a home loan or sell their existing home in order to purchase a new home, buyers mostly consisted of celebrities, CEOs, hedge fund managers, investors etc, intending to leverage their money by purchasing a second home where they could work remotely while enjoying the comforts of Santa Barbara. These variations in the market contributed to an increasingly busy 2020, with each new quarter proving to be busier than the last. In the 1st Quarter of 2021 market, potential for sales was great as many eager buyers sought to purchase in Santa Barbara. However, there was not enough inventory. To ensure the safety of their families during a pandemic, many residents did not want to sell their homes.

1st Quarter of 2021 Market trends from 2020 continued into Q1 of 2021. The market intensified with low interest rates and less travel restrictions. As a result, average home prices increased by 82% in South Santa Barbara County. Low interest rates incentivized those looking to purchase their first home as well as those looking to make improvements on their existing homes. Homes with bonus rooms or ADU (Accessory Dwelling Units) became popular amongst buyers seeking home offices amidst the pandemic. This, paired with the strong demand from out-of-town, ultra-wealthy cash buyers, resulted in a significant reduction of listings’ ‘days on the market’ with most properties selling between five and seven days. The ‘sellers market’ will persist as more people receive their vaccinations. New buyers will continue to come into town and sellers will become increasingly comfortable with listing their homes on the market. To review all of the 1st Quarter of 2021 market graphs and statistics, please visit www.RealEstateinSantaBarbara.com/news or contact me directly at 805.689.7700 to discuss the activity in your neighborhood.

Thank you for reviewing the Q1 activity summary. Below, you will find the 2021 market graphs and statistics for real estate in the Santa Barbara area.

If you would like to see all off-market and cash sales for March of 2021, please Email Me.

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