volatility in the stock market the 30 year fixed interest rate dropped below the December ... The inventory is still lac
The January 2016 Santa Barbara real estate market report is in. The Santa Barbara area real estate market picked up where it left off in December. There were 74 total sales for the area with a median price of $1,369,000. The biggest increase in sold price compared to December was noticed in Montecito (60%) and Santa Barbara (24%). The rest of the market was fairly flat. One of the key takeaways is that the average days on market (DOM) increased to 64 days. This means homes are sitting on the market almost 2 months, the previous year average was 52 days. The activity in January picked up noticeably as many buyers were spooked by the FEDs decision to increase rates for the first time in almost 10 years. The interesting thing is that due to the volatility in the stock market the 30 year fixed interest rate dropped below the December pricing. Buyers are eagerly looking to find the right home and secure attractive long term financing. It appears that many of the buyers are focused in on neighborhoods that have high ranking schools and there are plenty of entry level/first time buyers looking for homes in the $600,000 - $800,000 range. The inventory is still lacking keeping us securely in a seller’s market. With increased demand as we head into the spring selling season I would anticipate that we will continue to see modest appreciation through the summer. The main question on everyone’s mind is how many homes will be coming to the market? If we see a flood of inventory we could see pricing flatten out a bit or at least enough to give buyers more options which will increase the number of transactions. Home owners should be cautioned against overpricing a home in this market. While there is little inventory for buyers to look at, people are still looking for value. The homes that have been overpriced are seeing multiple reductions as they chase the market down. The buyers I am working with are looking for one of two things, either a home that hasn’t been remodeled and therefore has flexibility to be redesigned to their liking or a home that has been tastefully remodeled without many oversights. The home that needs work it must be priced accordingly because the buyer is factoring the cost of remodel into their offer. I feel buyers have become weary of the quick flip with poor workmanship and aren’t willing to pay a premium only to have to repair sloppy work.
My advice to sellers is to schedule a consult to discuss any possible work and maintenance before coming on the market and to take a deep look at the comps in the area to determine the asking price. If your home is a showstopper, then you can expect to get top of market pricing but if your home is in need of a little TLC then you might want to price accordingly in an effort to drive multiple offers and control the negotiation. My advice for home buyers is the same as it always has been. Make a list of your most important needs, if the home you are looking at checks off more than 80% of your wish list and is within your budget you should consider making an offer. It is important to review comps to determine if the home is priced reasonably and present a strong offer from the beginning. There is still room to negotiate but as you will see in the report homes are primarily selling between 1-5% below list price and every neighborhood is a little different. Brennan Titus Harbor View Real Estate 805-598-0616
[email protected] BRE No. 01732524
Santa Barbara Area Market Report January 2016
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
January 2016 Market Summary Santa Barbara Area Home Sales Santa Barbara Area includes Home Estates & PUD in Carp/Summerland, Montecito, Santa Barbara, Hope Ranch, & Goleta
• Median sales price jumped to begin 2016 due to luxury sales in Montecito. Median price without Montecito or Hope Ranch was $1,050,000. • Months inventory dipped again in January as we didn’t see much new inventory until late January. • Interest rates – Due to the turbulence in the stock market and investors moving into the 10 yr. bond we saw rates to their lowest point in months. • Market Forecast – Well priced homes are still going under contract quickly however the average Days on Market (DOM) increased to its highest level in 10 months. • Average DOM for 2015 was 52.5 days, Jan 2016 saw an average of 64 days. Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Sales Under, Over,At Listing Price Jan. 2016 Santa Barbara MLS Home/PUD Sales Data includes all residential sales recorded in the Santa Barbara MLS this period
Over 20% List Price
0.0%
10% - 20% Over List Price
0.0%
5% - 10% Over List Price
0.6%
1% - 5% Over List Price
1.9% 20.8%
Within 1% +/- of List Price 1-5% Below List Price
48.7% 20.8%
5-10% Below List Price 10 - 20% Below List Price Less than 20% Below List Price
6.5% 0.6%
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Santa Barbara Home/PUD Sales (Jan | 2012 – 2016) Santa Barbara Area includes: Carp/Summerland, Montecito, Santa Barbara, Hope Ranch, & Goleta
1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2012
2013
2014
2015
2016
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Santa Barbara Home/PUD Sales (Jan. 2015 –Jan. 2016) Santa Barbara Area includes: Carp/Summerland, Montecito, Santa Barbara, Hope Ranch, & Goleta
$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price by District Jan. 2016 Santa Barbara Home/PUD Sales $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
$4,000,000
$1,350,000
$1,236,000 $759,000
$747,500 $0
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
$892,500
Median Sales Price Carp/Summerland - Home/PUD Sales (Jan 2015 –Jan 2016) $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Montecito - Home/PUD Sales (Jan 2015 –Jan 2016) $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price SB/East of State - Home/PUD Sales (Jan 2015 –Jan 2016) $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price SB/West of State - Home/PUD Sales (Jan 2015 –Jan 2016) $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Hope Ranch - Home/PUD Sales (Jan 2015 –Jan 2016) $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Goleta South - Home/PUD Sales (Jan 2015 –Jan 2016) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Median Sales Price Goleta North - Home/PUD Sales (Jan 2015 –Jan 2016) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan 2016
Dec 2015
Nov 2015
Oct 2015
Sept 2015
Aug 2015
July 2015
June 2015
May 2015
Apr 2015
Mar 2015
Feb 2015
Jan 2015
Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
Months Inventory Comparison of Inventory Levels (Jan 2015 – Jan 2016) Santa Barbara Area includes: Carp/Summerland, Montecito, Santa Barbara, Hope Ranch, & Goleta
10 9 8 7 6 5 4 3 2 1 0
BUYERS MARKET BALANCED MARKET
SELLERS MARKET
Months Inventory Compiled from Santa Barbara Multiple Listing Service Data. Information deemed to be reliable but not guaranteed. Titus Real Estate Group | 219 W Carrillo St., 2nd Floor, Santa Barbara, CA 93101 | 805-256-7052 | www.Titusre.com | BRE No. 01732524
