2021 Q2 Santa Barbara Real Estate Market Report
The Santa Barbara real estate market consistency in Q1 of 2021 continued into Q2 as April and May started off strong. There was a slower pace of sales in June due to the administration of vaccines and the reopening of cities. Many out of town buyers who, for a year, had been eager to purchase, chose to travel to visit family and friends or to take a break, delaying their purchase to a later date. Currently, as of 07/14/2021, we have seen a shift as these buyers are coming back into the Santa Barbara area. We can therefore anticipate that the volume of sales will continue to increase as the year progresses. Needless to say, we have set new records in 2021 as compared to the first half of 2020. For the first time in over 15 years average home prices in South Santa Barbara county increased to over $2 million. Average home prices in both Montecito and Hope Ranch have increased to over $5 million as well. This is an unprecedented increase in average home prices, a milestone that the Santa Barbara real estate market has never experienced before. Please refer to the chart below:
Current Average Home Prices
|Santa Barbara||Montecito||Hope Ranch|
*Change from the previous year.
Our prediction for the rest of the year remains optimistic. The Santa Barbara real estate market should continue to be a Seller’s Market as there are still a tremendous number of motivated buyers out there. Work from home opportunities coupled with low interest rates are still the major factors for the active market we are experiencing. Additionally, as a direct result of the pandemic, a new pool of out of town buyers have just recognized Santa Barbara as an amazing place to live. Majority of buyers hail from the Bay Area. They are discouraged by Bay Area real estate prices, seeking refuge in the central coast real estate “bargains”. Although there are many eager buyers, potential seller’s have a lack of confidence that they will be able to find a new home in today’s market, should they choose to sell. This contributes to a lack of market inventory that is necessary to satisfy the demand.
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