The 2021 3rd Quarter Market Report reveals that the sales of single-family homes in Santa Barbara were down 40% in September of 2021 as compared to September of 2020. However, there is an optimistic shift as year-to-date, we have brokered 21% more homes in October of 2021 than in October of 2020. Towards the end of the 2nd Quarter, we experienced a loss of momentum in the high-end market due to an increase in travel and a lack of inventory. This slowness in the high-end market proved to be short lived as people returned from their trips and inventory leveled.
As the 3rd quarter comes to an end, the biggest challenge continues to be the lack of inventory. High demand from out-of-town buyers, coupled with demand from our local buyers, has significantly increased prices to the highest our market has ever seen.
Year-to-date, average condo prices increased 18% and 39% for single-family homes in September 2021. In 2021, average home prices in South Santa Barbara County increased a staggering 25% as compared to last year, exceeding the $2 million ($2,456,087/Avg Price) mark for the first time.
Sellers in the low/mid-end market continue to sell their homes at asking price or above, with multiple offers presented. The 2021 3rd quarter market report reveals that buyers are forced to act aggressively as buyer competition is high. On average, buyers must make five to seven offers before a house will go under contract in today’s competitive market.
Across the board (low/mid-end and high-end), we anticipate that the market will continue to thrive throughout the 4th Quarter and into the 1st Quarter of 2022. Historically, the market tends to slow down at the end of the year as the holiday season approaches and fewer people choose to sell. This lack of inventory generates more interest in the few homes that are on the market and therefore more offers are presented to sellers.
To review additional graphs and statistics tailored to your neighborhood, reach out to me directly here or email me at Sina@SinaOmidi.com.