Santa Barbara Real Estate Market Report February March 2022

We are here with another Santa Barbara real estate market update for you to consider. As we all know, there is a lot happening that can affect markets and we’d like to give you our take on things. Below, the Santa Barbara Group agents have put together their individual thoughts.

State of the Market in Few Sentences

Joe: “The real estate market is not slowing down as much as I had hoped it would at the beginning of the year. We are still operating with about 30% of normal inventory levels. The dynamics that existed in the record-breaking year of 2021 remain with some changes worth keeping an eye on.

Inflation plus raising interest rates may be the number one story this year. Will it reduce the demand enough to slow down the pace of appreciation? Will more sellers choose to list? One can only hope. It may be that without a recession — keep an eye on the new war between Russia and the Ukraine — this market will continue to boom.”

Avi: “What I am finding very interesting about some of our current buyer clients is that a large portion of them are moving from out of town. I have never seen such a demand for Santa Barbara for second homeowners and those moving from other areas. This increased demand is eating up the limited supply very quickly, and many buyers continue to miss out.

Currently, I have three escrows that are all off-market, and we are using all possible resources to help our clients win even in this ever-competitive market.”

Garrett: “For the last 2 weeks, there was a slight increase in new listings hitting the market, with pending sales continuing to hold strong. If the current environment persists where we have a tight supply of homes and a competitive buyer pool eager to jump in, we will only continue to see prices go up.

So far, 2022 is shaping up to be another very robust year for Santa Barbara real estate. Buyers are getting strategic and doing whatever they can to stand out and get their offer accepted above the competition.”

• As many of you know, it has become a stiff seller’s market here on the Central Coast in Santa Barbara. A seller’s market places sellers in control as they receive multiple bids on their property, allowing them to hold out for ideal buyers and sell at higher-than-normal price points.
• As home prices soar, this also causes other homeowners to hold onto their properties in the hopes of getting more value for them in the future. This cycle creates lower supply and adds to pent-up demand, further exacerbating the seller’s market trend and driving home prices even higher.

January Numbers and Trends

Thank you for spending time with us. If you have questions, we are delighted to chat with you over Zoom or in person. Let us know the best time for you and we will make it happen: https://calendly.com/joeparker-1/initial-consultation/
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Joe Parker, Garrett McCaw, Avi Becker
The Santa Barbara Group at Berkshire Hathaway Home Services California Properties
3868 State Street Santa Barbara, CA 93105
(805) 886-5735
https://TheSantaBarbaraGroup.com
Cal BRE #01314939