Stan Tabler

Santa Barbara Real Estate, Montecito Real Estate, Hope Ranch Real Estate & Goleta Real Estate

Stan Tabler, Santa Barbara Real Estate Stan Tabler, Santa Barbara Real Estate

(805) 689-2305

Santa Barbara Real Estate Services

Santa Barbara Real Estate Services The decision to purchase real estate or to place your home for sale in the Santa Barbara real estate market can be one of the biggest you and your family will make at any given time. This decision can be made easier if you are adequately informed about the buying and selling process, the local real estate market and the neighborhoods and communities in which you are interested. As a local real estate professional with more than thirty years of experience helping buyers and sellers just like you, it would be my great pleasure to introduce you to the Santa Barbara Real Estate Services I offer to both buyers and sellers.

For sake of simplicity, buying a home is a three-step process: finding the right community, finding the right home and negotiating the best contract terms. For your convenience, I have compiled a wealth of information on local communities and their real estate trends as well as provided you access to the search the entire Santa Barbara MLS to view available properties. Once we have narrowed down the ideal community and the right home, I will use my many years of experience and expertise and my Santa Barbara Real Estate Services to negotiate the contract terms to suit your needs and to exceed your expectations.

For sellers, I believe you will find my commitment to untiring communication and service, masterful marketing and negotiation skills to be most refreshing. Resulting from years of extensive experience and research, a superior ability to anticipate problems and solve them and unsurpassed ethics and professionalism, you will find these qualities will help your home sell quickly and for its highest dollar.

Whether you are moving across town or across the country, it would be my great pleasure to assist you with all your housing needs and to share my Santa Barbara Real Estate Services with you and your family. Please feel free to browse my Santa Barbara Home Buying and Selling Tips at your leisure and do not hesitate to contact me, Stan Tabler at your convenience. I look forward to hearing from you soon and assisting you with all your real estate goals, big and small.

Santa Barbara South Coast Real Estate Update

March 8, 2023

Direct from the County Recorder’s Office by way of Fidelity National Title, the total number of monthly residential sales on the South Coast of Santa Barbara County was down 36% from 128 in February 2022 to 73 in February 2023.  In February 2023 there were 49 House/PUD (Planned Unit Development) sales (down 44% from 2022) with a median sales price of $2,090,000 (down 16% from 2022) and an average sales price of $3,146,770 (down 7% from 2022).  In February 2023 there were 24 Condominium sales (down 60% from 2022) with a median sales price of $990,000 (up 13% from 2022) and an average sales price of $1,119,515 (down 11% from 2022).  For 2023 Year-to-Date, there have been a combined total of 142 residential sales (down 40% from 2022), with a median sales price of $1,533,000 (down 11% from 2022) and an average sales price of $2,574,146 (down 6% from 2022).

In Carpinteria, there were a total of 8 residential sales in February 2023, up from 6 in January.  In February 2023 the median price of the 4 House/PUD sales was $2,587,500 and the average price was $3,643,750.  In February 2023 the median price of the 4 Condominium sales was $665,000 and the average price was $708,750.  The lowest-priced Carpinteria sale in February 2023 was a Condominium on Hickory Street @ $515,000 and the highest was a beachfront House on Sandyland Road @ $8,100,000.

In Summerland, there were a total of 3 residential sales in February 2023, up from 1 in January.  In February 2023 the median price of the 3 House/PUD sales was $5,350,000 and the average price was $7,733,450.  In February 2023 there were no Condominium sales in Summerland.  The lowest-priced Summerland sale in February 2023 was a House on Golden Gate Avenue @ $2,529,150 and the highest was an Estate on Ortega Ranch Road @ $9,321,200.

In Montecito, there were a total of 3 residential sales in February 2023, down from 9 in January.  In February 2023 the median price of the 3 House sales was $6,505,000 and the average price was $9,609,333.  In February 2023 there were no Condominium sales in Montecito.  The lowest-priced Montecito sale in February 2023 was a House on Miramar Avenue @ $4,823,000 and the highest was an Estate on Buena Vista Drive @ $17,500,000.

In the City of Santa Barbara, there were a total of 34 residential sales in February 2023, up from 33 in January.  In February 2023 the median price of the 21 House/PUD sales was $2,300,000 and the average price was $2,292,907.  In February 2023 the median price of the 13 Condominium sales was $1,302,540 and the average price was $1,384,873.  The lowest-priced Santa Barbara sale in February 2023 was a Condominium on San Pascual Street @ $560,000 and the highest was a House on Alston Place @ $4,325,000.

In Hope Ranch, there were a total of 3 residential sales in February 2023, up from 2 in January.  In February 2023 the median price of the 3 House sales was $7,250,000 and the average price was $7,658,333.  There are no Condominiums or PUDs in Hope Ranch.  The lowest-priced Hope Ranch sale in February 2023 was an Estate on Via Fruteria @ $5,325,000 and the highest was an Estate on Via Roblada @ $10,400,000.

  In Goleta, there were a total of 22 residential sales in February 2023, up from 18 in January.  In February 2023 the median price of the 15 House/PUD sales was $1,405,316 and the average price was $1,497,488.  In February 2023 the median price of the 7 Condominium sales was $808,000 and the average price was $861,429.  The lowest-priced Goleta sale in February 2023 was a Condominium on Dearborn Place @ $559,000 and the highest was a House on Meadowlark Lane @ $2,775,000.

Analysis

Sellers who had avoided listing their homes due to pandemic concerns moved forward in 2022 to list their properties, but the inventory of listings for sale still remained and to this day remains relatively low.  The historically low mortgage interest rates have risen dramatically since early 2022 when many would-be Sellers locked in on mortgage rates of 3% or less, so there is now a financial consideration to remain in their current homes.

All markets are hyper-localized, including the real estate market on the South Coast of Santa Barbara County with its still limited inventory and relatively higher values as compared to many other areas of California and the United States.  Focusing on the supply in any market is a good way to anticipate where the markets are heading.  Along the South Coast of Santa Barbara County as of February 1st, there were 86 active House/PUD listings (up from 78 in January) and 22 active Condominium listings available (down from 29 in January).  Historically there has been more inventory available in the higher price ranges than in the lower ranges; as of January 1st, 30% of the active House/PUD listings were located in the higher-valued Montecito and Hope Ranch areas.  Compare these current low totals to the inventory levels from 2007 to 2011 when the total number of active listings fluctuated between 734 and 1,026.  Historically the highest number of active listings along the South Coast was recorded in June of 1992 when there were an astounding 1,297 active listings available for Buyers to choose from.

In 2021 and 2022, there were only 2 bank-owned sales each year on the South Coast of Santa Barbara County.  There are no bank-owned listings available at this point in time.  Nationally, the rate of seriously past due mortgage debt was only 0.6% as of the 4th quarter of 2022, according to the Federal Reserve Bank of New York.  The reason there have been so few distress sales on the South Coast of Santa Barbara County is due to owner’s equity rising so quickly, allowing them to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few bankruptcy sales where the homeowner’s debt has had to be restructured resulting in the sale of a property.  To check out California’s foreclosure list by County, check out this link: California Foreclosure Trends by County .

The Federal Reserve (the Fed) had maintained a near-zero interest rate since early 2020 due to the negative effects on the world economy due to the pandemic and supply chain issues, but due to inflationary pressures, the Fed reversed course in 2022, began raising rates and that course continues into 2023.  Fed Chairman Jerome Powell on March 7th confirmed in his testimony to a Senate committee that the Fed is ready to increase the pace of its hikes again as needed.  Powell testified that “the ultimate level of interest rates is likely to be higher than previously anticipated.  If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.  Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time.”

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of March 6th, you could lock in a $647,200 30-year fixed-rate loan at 6% with a 1% closing fee if you used a mortgage broker, but large banking institutions seem to be offering the loans at 5%+ (sometimes this also requires a substantial deposit).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65%, which was matched again in July 2021.  The highest historical conforming mortgage rate was recorded in 1981 @ 18.63%.  As a comparison, a mortgage payment for a $647,200 mortgage in 1981 would have been $10,087/month, the payment in February 2021 would have been $2,608/month, and as of March 6th, the payment would be $3,880/month.  Increased mortgage interest rates have dissuaded many potential buyers from searching for a new home and discouraged some sellers from moving to a new home due to the low-interest mortgage payments they have locked in on their current home; this is now known as “Mortgage Lockdown”.

According to USA Today, the national average for all-cash real estate sales was 31.4%.  On the South Coast in February 2023, 33% of the sales were cash sales, up from 26% in January.  Review the attached list of the 69 properties sold on the South Coast of Santa Barbara County in February 2023 and/or contact me for information on specific sales.

Of the 73 sales in February 2023, 55 were over $1,000,000 which equates to 75.3% of the total sales, down from 75.4% in January.  The South Coast of Santa Barbara is not an inexpensive place to purchase real estate compared to most areas of the United States, but again many people will pay more to live and invest in Santa Barbara.  According to PropertyShark’s 2022 report, California has 7 of the 10 most expensive median-priced sales ZIP codes in the country.  Montecito’s 93108 ZIP came in at #8 nationally. https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us

The NAHB/Wells Fargo Housing Market index in the US increased for a second month to 42 in February of 2023, the highest since September and beating market forecasts of 37. It is also the biggest monthly gain in nearly a decade excluding the rebound after 2020 COVID-19 lockdowns. The gauge for current sales conditions rose to 46 from 40, sales expectations in the next six months went up to 48 from 37, and traffic of prospective buyers edged 6 points higher to 29. “Even as the Federal Reserve continues to tighten monetary policy conditions, forecasts indicate that the housing market has passed peak mortgage rates for this cycle. And while we expect ongoing volatility for mortgage rates and housing costs, the building market should be able to achieve stability in the coming months, followed by a rebound trend back to home construction levels later in 2023 and the beginning of 2024”, said NAHB chief economist Robert Dietz.  For the full report check out https://tradingeconomics.com/united-states/nahb-housing-market-index

“Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.  “And, while 12-month inflation expectations improved—falling to 6.3 percent from 6.7 percent last month—consumers may be showing early signs of pulling back spending in the face of high prices and  rising interest rates. Fewer consumers are planning to purchase homes or autos and they also appear to be scaling back plans to buy major appliances.”  To review the full report: https://conference-board.org/data/consumerconfidence.cfm .

As for the worldwide cost of living as of March 2023, Expatistan compiled an index of 246 major metropolitan areas.  The cost of gasoline in these areas was checked on March 1st.  Expatistan’s list indicates that #7 San Francisco with a 202 Price Index score is the most expensive area in California (the least expensive gallon of regular gas costs $4.99) and the least expensive is #113 Modesto with a Price Index score of 118 ($4.12/gallon).  In the USA, the most expensive area to live in is #1 New York City @ 235 ($3.04/gallon) and the least expensive is #167 Cedar Rapids, Iowa @ 95 ($2.94/gallon).  Of the top 25 most expensive areas worldwide, 4 are in California including San Francisco @ #7, Los Angeles @ #15 ($4.69/gallon), #24 San Diego @ 174 ($4.89/gallon) and #25 San Jose @ 172 ($4.65/gallon).  The most expensive area to live in the world is New York City @ #1 and the least expensive is #246 Nagpur (India) @ 41 ($5.09/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices of $4.39/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is interesting to check out to compare the cost of living in cities around the world: https://www.expatistan.com/cost-of-living/index

In late February, Jiayi Xu at realtor.com wrote about national housing trends https://www.realtor.com/research/freddie-mac-mortgage-rates-feb-23-2023/ :

“The Freddie Mac fixed rate for a 30-year loan continued to rise to 6.5%, the highest level of 2023.  On an ordinary day, strong retail sales data and a 53-year low unemployment rate would be a cause for celebration among investors and businesses. However, under current conditions, these robust data raise uncertainties in the markets.  On one hand, the hotter-than-expected inflation might force the Fed to reopen doors to faster interest rate growth, which is unwelcome news for both investors and businesses. On the other hand, some policymakers did not interpret January’s data as signs of accelerating growth, choosing to wait for more information before deciding. As a result, they are in favor of implementing smaller rate hikes in the coming months, which would be welcomed by markets.”

Historically the highest Year-to-Date median sales price recorded on the Santa Barbara South Coast was recorded in 2007 at $1,031,500.  In February 2023 the median sales price was $1,476,000, down from $1,615,000 in January and down 14% from 2022.  The median sales  price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward swing in 2020, accelerating in 2021 and into most of 2022.  In early 2022 a new record-high median sales price was being set each month, but prices have now leveled off and declined.  In February 2023 the average South Coast sales price was $2,480,275, down from $2,673,549 in January.

Based on the Santa Barbara Multiple Listing Service data, as of March 1st in the City of Santa Barbara, there were 37 active House/PUD listings (up from 36 in February) and 26 pending sales (up from 18 in February), which equates to a low 1.42-month supply (down from 1.8 in January) of listings for Buyers to choose from.  Generally, a 1-month supply would indicate the listings would all be sold within one month.  A less than 1-month supply of inventory indicates a feverish Seller’s market, a 1-to-2-month supply indicates a heated Seller’s market and a 2-to-4-month supply would be considered a basic Seller’s market where Buyer demand is still high and inventory is scarce.  Historically a 4-to-6-month supply of available inventory would indicate a fairly well-balanced, normal market between Buyers and Sellers.  Typically more than a 6-month supply is considered to be a Buyer’s market where inventory is plentiful; Buyers will be slower to make decisions as they compare the numerous properties on the market.  Based on Santa Barbara Multiple Listing Service data and as of March 1st, Carpinteria/Summerland had a 6-month supply (up from 2.4 in February), Montecito had a 4-month supply (down from 9.5 in February), Goleta had a .67-month supply (down from 1.5 in February) and Hope Ranch had a 7-month supply (up from 2.3 in February).  These inventory statistics indicate that Santa Barbara remains in a heated Seller’s market.  Goleta has crossed over into a feverish Seller’s market. Carpinteria/Summerland are in a balanced market.  Hope Ranch is now in a basic Buyer’s market and Montecito has crossed over into a basic Seller’s market.  With a combined total of 49 House/PUD pending sales (up from 38 in February) and 86 active listings (equal to February) on the South Coast of Santa Barbara County, there is only a 1.75-month supply (down from 2.3 in February) of House/PUD listings from which Buyers can choose.  With a combined total of 20 Condominium pending sales (up from 15 in February) and only 20 active listings (down from 22 in February) on the South Coast of Santa Barbara County, there is a 1-month supply (down from 1.5 in February) of Condominium listings from which Buyers can choose.  The South Coast market as a whole still remains entrenched in a variety of Seller and balanced markets, except for Hope Ranch which is now in a Buyer’s Market.  As our market is in a transition flux, there is still a lack of inventory for Buyers to choose from.  Even with all the negative national press, Santa Barbara real estate values have been more resilient to the downward pressures than other parts of the country: people just want to live on the South Coast of Santa Barbara County.

While the economic ramifications of the concerns about the pandemic have mellowed, the war in Ukraine, high inflation, the cost of gasoline, scarcity of insurance coverage in California or rising premiums, rising mortgage rates, and the possibility of recession are all concerns to many Buyers, and Sellers.  Since Proposition 19 has taken full effect, 55+ year-old homeowners can transfer their existing real estate tax base to a home anywhere in California, which should encourage some older Sellers to sell their homes.  Mortgage interest rates have risen lately and are nowhere near the historic lows of the last few years.  Low inventory and accelerated pandemic migratory trends toward smaller cities all led to a surge in Santa Barbara property values.  Market corrections will affect values on the South Coast of Santa Barbara, but not as much as in many other areas.  Listings may stay on the market a bit longer than in 2022, but there are still multiple offers on alluring properties; one property I know of had 27 offers on it in February.  With continuing low inventory, supply and demand dynamics have and will continue to affect the South Coast of the Santa Barbara Real Estate Market now and for a long time to come.

Feel free to contact me with any specific questions.

Stan Tabler, CRS, GRI, ABR, GREEN

Compass

801 Chapala Street

Santa Barbara, CA 93101

805.689.2305

[email protected]

http://www.stantabler.com

CalBRE Brokers License #00774377 since 1980

Santa Barbara Real Estate Buying and Selling Tips

Home-Fire-Hardening-Disclosure-Advisory-4Download

Whether you are a first-time home buyer or a seasoned veteran who has bought and sold properties for decades, buying or selling a home can be a complex process. While I have compiled this list of Santa Barbara Home Buying and Selling Tips as a resource for both buyers and sellers just like you, there is nothing that can replace the guidance provided by a knowledgeable and trusted member of the real estate community. As a Santa Barbara Realtor with more than three decades of experience in the Santa Barbara and surrounding markets, it would be my great pleasure to share my vast experiences with you. Perhaps one of the biggest preparations sellers can make when listing their Santa Barbara CA houses for sale is to get their home ready for buyers’ first impressions. Items such as the walkway, front porch and entryway can be crucial in a buyer’s first impression. Be sure to keep these areas free from clutter, updated and fresh. Kitchens and bathrooms are also known to “sell homes.” These are great areas to consider a few upgrades to maximize your return. As part of the Santa Barbara Real Estate Services I offer to sellers, we will walk through your home together to determine if any updates or changes need to be made to emphasize your home’s most marketable qualities. For buyers, it is important to first ask yourself why you want to buy a home: To stop paying rent? To start building equity? To raise a family? To have a place of your own? To entertain business associates? To move up to a bigger home? Next, you should determine the type of home you would like to have. Be specific and be sure to separate the “needs” from the “wants.” Once you have started this process, it will be imperative to speak with a qualified loan consultant regarding a pre-qualification. These Santa Barbara Home Buying and Selling Tips will assist you in being ready to explore communities and tour homes of interest without going on a wild goose chase.

Should you have any questions about these Santa Barbara Home Buying and Selling Tips, I encourage you to contact me. As a local real estate professional who lives, works and plays within the communities I service, it would be my great pleasure to welcome you to our area or to help you find the perfect buyers for your Santa Barbara home. Please do not hesitate to contact me today. I look forward to hearing from you soon and to earning your trust and business. Let’s get started!

Why is Santa Barbara Real Estate so expensive?

The Santa Barbara County South Coast may be the most attractive area in all of California to live due to its coastal setting, weather and no/slow growth policies which have been legally, and more importantly mentally, in place since 1972. With a total population of just over 200,000 coupled with a job base larger than the number of housing units available, the unrelenting demand for residences far outstrips the limited supply. Demand to live on the South Coast comes not only from local South Coast buyers (who account for 69.1% of the sales), but from North County buyers (1.2%), California buyers (14.7%), Western United States buyers (6.4%), Eastern United States buyers (5.8%) and Buyers from Abroad (2.8%). The South Coast’s Median Home price runs over twice the price of California’s Median Home price. Santa Barbara is a world-class destination and a highly desirable place to live; real estate values are driven by lifestyle choices, not just by economics.

What is the Median Home Selling Price?

The Median Price represents the price point at which half the homes sell for more and half sell for less. The Median Price can fluctuate from month to month depending on the price-mix of homes sold.

Current Price Trends

South Coast of Santa Barbara County

For February 2023

Single Family Residence Market

Median Sales Price = $2,090,000

Lowest Sale Price = $835,000

Highest Sale Price = $17,500,000

Condominium/PUD Market

Median Sales Price = $990,000

Lowest Sale Price = $515,000

Highest Sale Price = $2,800,000

Where can I see Santa Barbara homes for sale?

Just go to “Property Search” to listings currently available in any given price range.

Buying Your Santa Barbara Home

Step 1

Meet with me to get a general overview of the current market and to discuss what you are looking for in a home. Contact Stan by e-mail at [email protected] or on his direct line at (805) 689-2305.

Step 2

Since you will be making a serious financial commitment, your next task is to determine your budget for your investment in Santa Barbara Real Estate. If you need a mortgage, you should start the Pre-Approval process with a local lender and determine your comfort level.

Step 3

Determine the size of Santa Barbara home you will require, or can live with, by identifying the spaces you need for your family’s activities. No house will ever fully live up to your dreams, so you will probably have to make some compromises. Break the process into parts and prioritize those parts. Mentally budget for the parts your really care about!

Step 4

Select target neighborhoods that meet your needs for commuting, shopping access, quality of schools, availability, style and recreational activities. There is an array of possibilities; during this step we will tour homes in a few Santa Barbara neighborhoods to give you a overall view of the area.

Step 5

After determining which Santa Barbara neighborhoods and will fit your desires, we will concentrate your home search in the chosen areas. This may entail e-mailing the new listings to you as they come on the market or calling you with the information.

Step 6

After locating a home acceptable to you, we will prepare an offer to be presented to the Seller. This offer will contain your inspection and financing contingencies.

Step 7

Upon mutual acceptance of your negotiated offer, an escrow will be opened to handle the paperwork and title insurance needed for you to purchase the property. In California, the escrow company is a neutral third party which follows mutually agreed upon instructions from the Buyer and Seller. Your deposit check, which is usually in the amount of 3% of the purchase price, will be deposited into this escrow account.

Step 8

The length of escrow is negotiated in the offer and can be long or short, but the usual length is 30-45 days. Usually the Buyer has a 17 day inspection contingency and the Buyer has the right to inspect the property and review any disclosures the Seller can provide. If the Buyer requires a mortgage, the time frame for removing the loan contingency is usually between 17 and 21 days. These time frames are all negotiable.

Step 9

Assuming that property checks out and you have removed all your contingencies, the balance of your funds is due in escrow the last business day prior to the escrow closing. Property transfers are recorded at 8:00 AM each business day and we usually get confirmation between 10:00 and 2:00, depending on how busy the County Recorder’s office is that particular day. Upon receiving confirmation the Seller usually releases the keys to the Buyer who is then free to occupy their new property.

Santa Barbara South Coast Real Estate Update

March 8, 2023

Direct from the County Recorder’s Office by way of Fidelity National Title, the total number of monthly residential sales on the South Coast of Santa Barbara County was down 36% from 128 in February 2022 to 73 in February 2023.  In February 2023 there were 49 House/PUD (Planned Unit Development) sales (down 44% from 2022) with a median sales price of $2,090,000 (down 16% from 2022) and an average sales price of $3,146,770 (down 7% from 2022).  In February 2023 there were 24 Condominium sales (down 60% from 2022) with a median sales price of $990,000 (up 13% from 2022) and an average sales price of $1,119,515 (down 11% from 2022).  For 2023 Year-to-Date, there have been a combined total of 142 residential sales (down 40% from 2022), with a median sales price of $1,533,000 (down 11% from 2022) and an average sales price of $2,574,146 (down 6% from 2022).

In Carpinteria, there were a total of 8 residential sales in February 2023, up from 6 in January.  In February 2023 the median price of the 4 House/PUD sales was $2,587,500 and the average price was $3,643,750.  In February 2023 the median price of the 4 Condominium sales was $665,000 and the average price was $708,750.  The lowest-priced Carpinteria sale in February 2023 was a Condominium on Hickory Street @ $515,000 and the highest was a beachfront House on Sandyland Road @ $8,100,000.

In Summerland, there were a total of 3 residential sales in February 2023, up from 1 in January.  In February 2023 the median price of the 3 House/PUD sales was $5,350,000 and the average price was $7,733,450.  In February 2023 there were no Condominium sales in Summerland.  The lowest-priced Summerland sale in February 2023 was a House on Golden Gate Avenue @ $2,529,150 and the highest was an Estate on Ortega Ranch Road @ $9,321,200.

 

In Montecito, there were a total of 3 residential sales in February 2023, down from 9 in January.  In February 2023 the median price of the 3 House sales was $6,505,000 and the average price was $9,609,333.  In February 2023 there were no Condominium sales in Montecito.  The lowest-priced Montecito sale in February 2023 was a House on Miramar Avenue @ $4,823,000 and the highest was an Estate on Buena Vista Drive @ $17,500,000.

 

In the City of Santa Barbara, there were a total of 34 residential sales in February 2023, up from 33 in January.  In February 2023 the median price of the 21 House/PUD sales was $2,300,000 and the average price was $2,292,907.  In February 2023 the median price of the 13 Condominium sales was $1,302,540 and the average price was $1,384,873.  The lowest-priced Santa Barbara sale in February 2023 was a Condominium on San Pascual Street @ $560,000 and the highest was a House on Alston Place @ $4,325,000.

In Hope Ranch, there were a total of 3 residential sales in February 2023, up from 2 in January.  In February 2023 the median price of the 3 House sales was $7,250,000 and the average price was $7,658,333.  There are no Condominiums or PUDs in Hope Ranch.  The lowest-priced Hope Ranch sale in February 2023 was an Estate on Via Fruteria @ $5,325,000 and the highest was an Estate on Via Roblada @ $10,400,000.

  In Goleta, there were a total of 22 residential sales in February 2023, up from 18 in January.  In February 2023 the median price of the 15 House/PUD sales was $1,405,316 and the average price was $1,497,488.  In February 2023 the median price of the 7 Condominium sales was $808,000 and the average price was $861,429.  The lowest-priced Goleta sale in February 2023 was a Condominium on Dearborn Place @ $559,000 and the highest was a House on Meadowlark Lane @ $2,775,000.

Analysis

Sellers who had avoided listing their homes due to pandemic concerns moved forward in 2022 to list their properties, but the inventory of listings for sale still remained and to this day remains relatively low.  The historically low mortgage interest rates have risen dramatically since early 2022 when many would-be Sellers locked in on mortgage rates of 3% or less, so there is now a financial consideration to remain in their current homes.

All markets are hyper-localized, including the real estate market on the South Coast of Santa Barbara County with its still limited inventory and relatively higher values as compared to many other areas of California and the United States.  Focusing on the supply in any market is a good way to anticipate where the markets are heading.  Along the South Coast of Santa Barbara County as of February 1st, there were 86 active House/PUD listings (up from 78 in January) and 22 active Condominium listings available (down from 29 in January).  Historically there has been more inventory available in the higher price ranges than in the lower ranges; as of January 1st, 30% of the active House/PUD listings were located in the higher-valued Montecito and Hope Ranch areas.  Compare these current low totals to the inventory levels from 2007 to 2011 when the total number of active listings fluctuated between 734 and 1,026.  Historically the highest number of active listings along the South Coast was recorded in June of 1992 when there were an astounding 1,297 active listings available for Buyers to choose from.

In 2021 and 2022, there were only 2 bank-owned sales each year on the South Coast of Santa Barbara County.  There are no bank-owned listings available at this point in time.  Nationally, the rate of seriously past due mortgage debt was only 0.6% as of the 4th quarter of 2022, according to the Federal Reserve Bank of New York.  The reason there have been so few distress sales on the South Coast of Santa Barbara County is due to owner’s equity rising so quickly, allowing them to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few bankruptcy sales where the homeowner’s debt has had to be restructured resulting in the sale of a property.  To check out California’s foreclosure list by County, check out this link: California Foreclosure Trends by County .

The Federal Reserve (the Fed) had maintained a near-zero interest rate since early 2020 due to the negative effects on the world economy due to the pandemic and supply chain issues, but due to inflationary pressures, the Fed reversed course in 2022, began raising rates and that course continues into 2023.  Fed Chairman Jerome Powell on March 7th confirmed in his testimony to a Senate committee that the Fed is ready to increase the pace of its hikes again as needed.  Powell testified that “the ultimate level of interest rates is likely to be higher than previously anticipated.  If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.  Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time.”

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of March 6th, you could lock in a $647,200 30-year fixed-rate loan at 6% with a 1% closing fee if you used a mortgage broker, but large banking institutions seem to be offering the loans at 5%+ (sometimes this also requires a substantial deposit).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65%, which was matched again in July 2021.  The highest historical conforming mortgage rate was recorded in 1981 @ 18.63%.  As a comparison, a mortgage payment for a $647,200 mortgage in 1981 would have been $10,087/month, the payment in February 2021 would have been $2,608/month, and as of March 6th, the payment would be $3,880/month.  Increased mortgage interest rates have dissuaded many potential buyers from searching for a new home and discouraged some sellers from moving to a new home due to the low-interest mortgage payments they have locked in on their current home; this is now known as “Mortgage Lockdown”.

According to USA Today, the national average for all-cash real estate sales was 31.4%.  On the South Coast in February 2023, 33% of the sales were cash sales, up from 26% in January.  Review the attached list of the 69 properties sold on the South Coast of Santa Barbara County in February 2023 and/or contact me for information on specific sales.

Of the 73 sales in February 2023, 55 were over $1,000,000 which equates to 75.3% of the total sales, down from 75.4% in January.  The South Coast of Santa Barbara is not an inexpensive place to purchase real estate compared to most areas of the United States, but again many people will pay more to live and invest in Santa Barbara.  According to PropertyShark’s 2022 report, California has 7 of the 10 most expensive median-priced sales ZIP codes in the country.  Montecito’s 93108 ZIP came in at #8 nationally. https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us 

The NAHB/Wells Fargo Housing Market index in the US increased for a second month to 42 in February of 2023, the highest since September and beating market forecasts of 37. It is also the biggest monthly gain in nearly a decade excluding the rebound after 2020 COVID-19 lockdowns. The gauge for current sales conditions rose to 46 from 40, sales expectations in the next six months went up to 48 from 37, and traffic of prospective buyers edged 6 points higher to 29. “Even as the Federal Reserve continues to tighten monetary policy conditions, forecasts indicate that the housing market has passed peak mortgage rates for this cycle. And while we expect ongoing volatility for mortgage rates and housing costs, the building market should be able to achieve stability in the coming months, followed by a rebound trend back to home construction levels later in 2023 and the beginning of 2024”, said NAHB chief economist Robert Dietz.  For the full report check out https://tradingeconomics.com/united-states/nahb-housing-market-index

“Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.  “And, while 12-month inflation expectations improved—falling to 6.3 percent from 6.7 percent last month—consumers may be showing early signs of pulling back spending in the face of high prices and  rising interest rates. Fewer consumers are planning to purchase homes or autos and they also appear to be scaling back plans to buy major appliances.”  To review the full report: https://conference-board.org/data/consumerconfidence.cfm .

As for the worldwide cost of living as of March 2023, Expatistan compiled an index of 246 major metropolitan areas.  The cost of gasoline in these areas was checked on March 1st.  Expatistan’s list indicates that #7 San Francisco with a 202 Price Index score is the most expensive area in California (the least expensive gallon of regular gas costs $4.99) and the least expensive is #113 Modesto with a Price Index score of 118 ($4.12/gallon).  In the USA, the most expensive area to live in is #1 New York City @ 235 ($3.04/gallon) and the least expensive is #167 Cedar Rapids, Iowa @ 95 ($2.94/gallon).  Of the top 25 most expensive areas worldwide, 4 are in California including San Francisco @ #7, Los Angeles @ #15 ($4.69/gallon), #24 San Diego @ 174 ($4.89/gallon) and #25 San Jose @ 172 ($4.65/gallon).  The most expensive area to live in the world is New York City @ #1 and the least expensive is #246 Nagpur (India) @ 41 ($5.09/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices of $4.39/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is interesting to check out to compare the cost of living in cities around the world: https://www.expatistan.com/cost-of-living/index

In late February, Jiayi Xu at realtor.com wrote about national housing trends https://www.realtor.com/research/freddie-mac-mortgage-rates-feb-23-2023/ :

“The Freddie Mac fixed rate for a 30-year loan continued to rise to 6.5%, the highest level of 2023.  On an ordinary day, strong retail sales data and a 53-year low unemployment rate would be a cause for celebration among investors and businesses. However, under current conditions, these robust data raise uncertainties in the markets.  On one hand, the hotter-than-expected inflation might force the Fed to reopen doors to faster interest rate growth, which is unwelcome news for both investors and businesses. On the other hand, some policymakers did not interpret January’s data as signs of accelerating growth, choosing to wait for more information before deciding. As a result, they are in favor of implementing smaller rate hikes in the coming months, which would be welcomed by markets.”

Historically the highest Year-to-Date median sales price recorded on the Santa Barbara South Coast was recorded in 2007 at $1,031,500.  In February 2023 the median sales price was $1,476,000, down from $1,615,000 in January and down 14% from 2022.  The median sales  price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward swing in 2020, accelerating in 2021 and into most of 2022.  In early 2022 a new record-high median sales price was being set each month, but prices have now leveled off and declined.  In February 2023 the average South Coast sales price was $2,480,275, down from $2,673,549 in January.

Based on the Santa Barbara Multiple Listing Service data, as of March 1st in the City of Santa Barbara, there were 37 active House/PUD listings (up from 36 in February) and 26 pending sales (up from 18 in February), which equates to a low 1.42-month supply (down from 1.8 in January) of listings for Buyers to choose from.  Generally, a 1-month supply would indicate the listings would all be sold within one month.  A less than 1-month supply of inventory indicates a feverish Seller’s market, a 1-to-2-month supply indicates a heated Seller’s market and a 2-to-4-month supply would be considered a basic Seller’s market where Buyer demand is still high and inventory is scarce.  Historically a 4-to-6-month supply of available inventory would indicate a fairly well-balanced, normal market between Buyers and Sellers.  Typically more than a 6-month supply is considered to be a Buyer’s market where inventory is plentiful; Buyers will be slower to make decisions as they compare the numerous properties on the market.  Based on Santa Barbara Multiple Listing Service data and as of March 1st, Carpinteria/Summerland had a 6-month supply (up from 2.4 in February), Montecito had a 4-month supply (down from 9.5 in February), Goleta had a .67-month supply (down from 1.5 in February) and Hope Ranch had a 7-month supply (up from 2.3 in February).  These inventory statistics indicate that Santa Barbara remains in a heated Seller’s market.  Goleta has crossed over into a feverish Seller’s market. Carpinteria/Summerland are in a balanced market.  Hope Ranch is now in a basic Buyer’s market and Montecito has crossed over into a basic Seller’s market.  With a combined total of 49 House/PUD pending sales (up from 38 in February) and 86 active listings (equal to February) on the South Coast of Santa Barbara County, there is only a 1.75-month supply (down from 2.3 in February) of House/PUD listings from which Buyers can choose.  With a combined total of 20 Condominium pending sales (up from 15 in February) and only 20 active listings (down from 22 in February) on the South Coast of Santa Barbara County, there is a 1-month supply (down from 1.5 in February) of Condominium listings from which Buyers can choose.  The South Coast market as a whole still remains entrenched in a variety of Seller and balanced markets, except for Hope Ranch which is now in a Buyer’s Market.  As our market is in a transition flux, there is still a lack of inventory for Buyers to choose from.  Even with all the negative national press, Santa Barbara real estate values have been more resilient to the downward pressures than other parts of the country: people just want to live on the South Coast of Santa Barbara County.

While the economic ramifications of the concerns about the pandemic have mellowed, the war in Ukraine, high inflation, the cost of gasoline, scarcity of insurance coverage in California or rising premiums, rising mortgage rates, and the possibility of recession are all concerns to many Buyers, and Sellers.  Since Proposition 19 has taken full effect, 55+ year-old homeowners can transfer their existing real estate tax base to a home anywhere in California, which should encourage some older Sellers to sell their homes.  Mortgage interest rates have risen lately and are nowhere near the historic lows of the last few years.  Low inventory and accelerated pandemic migratory trends toward smaller cities all led to a surge in Santa Barbara property values.  Market corrections will affect values on the South Coast of Santa Barbara, but not as much as in many other areas.  Listings may stay on the market a bit longer than in 2022, but there are still multiple offers on alluring properties; one property I know of had 27 offers on it in February.  With continuing low inventory, supply and demand dynamics have and will continue to affect the South Coast of the Santa Barbara Real Estate Market now and for a long time to come.

Feel free to contact me with any specific questions.

Stan Tabler, CRS, GRI, ABR, GREEN

Compass

801 Chapala Street

Santa Barbara, CA 93101

805.689.2305

[email protected]

http://www.stantabler.com

CalBRE Brokers License #00774377 since 1980

Santa Barbara Real Estate Market Trends

Santa Barbara South Coast Real Estate Update

March 8, 2023

Direct from the County Recorder’s Office by way of Fidelity National Title, the total number of monthly residential sales on the South Coast of Santa Barbara County was down 36% from 128 in February 2022 to 73 in February 2023.  In February 2023 there were 49 House/PUD (Planned Unit Development) sales (down 44% from 2022) with a median sales price of $2,090,000 (down 16% from 2022) and an average sales price of $3,146,770 (down 7% from 2022).  In February 2023 there were 24 Condominium sales (down 60% from 2022) with a median sales price of $990,000 (up 13% from 2022) and an average sales price of $1,119,515 (down 11% from 2022).  For 2023 Year-to-Date, there have been a combined total of 142 residential sales (down 40% from 2022), with a median sales price of $1,533,000 (down 11% from 2022) and an average sales price of $2,574,146 (down 6% from 2022).

In Carpinteria, there were a total of 8 residential sales in February 2023, up from 6 in January.  In February 2023 the median price of the 4 House/PUD sales was $2,587,500 and the average price was $3,643,750.  In February 2023 the median price of the 4 Condominium sales was $665,000 and the average price was $708,750.  The lowest-priced Carpinteria sale in February 2023 was a Condominium on Hickory Street @ $515,000 and the highest was a beachfront House on Sandyland Road @ $8,100,000.

In Summerland, there were a total of 3 residential sales in February 2023, up from 1 in January.  In February 2023 the median price of the 3 House/PUD sales was $5,350,000 and the average price was $7,733,450.  In February 2023 there were no Condominium sales in Summerland.  The lowest-priced Summerland sale in February 2023 was a House on Golden Gate Avenue @ $2,529,150 and the highest was an Estate on Ortega Ranch Road @ $9,321,200.

In Montecito, there were a total of 3 residential sales in February 2023, down from 9 in January.  In February 2023 the median price of the 3 House sales was $6,505,000 and the average price was $9,609,333.  In February 2023 there were no Condominium sales in Montecito.  The lowest-priced Montecito sale in February 2023 was a House on Miramar Avenue @ $4,823,000 and the highest was an Estate on Buena Vista Drive @ $17,500,000.

In the City of Santa Barbara, there were a total of 34 residential sales in February 2023, up from 33 in January.  In February 2023 the median price of the 21 House/PUD sales was $2,300,000 and the average price was $2,292,907.  In February 2023 the median price of the 13 Condominium sales was $1,302,540 and the average price was $1,384,873.  The lowest-priced Santa Barbara sale in February 2023 was a Condominium on San Pascual Street @ $560,000 and the highest was a House on Alston Place @ $4,325,000.

In Hope Ranch, there were a total of 3 residential sales in February 2023, up from 2 in January.  In February 2023 the median price of the 3 House sales was $7,250,000 and the average price was $7,658,333.  There are no Condominiums or PUDs in Hope Ranch.  The lowest-priced Hope Ranch sale in February 2023 was an Estate on Via Fruteria @ $5,325,000 and the highest was an Estate on Via Roblada @ $10,400,000.

  In Goleta, there were a total of 22 residential sales in February 2023, up from 18 in January.  In February 2023 the median price of the 15 House/PUD sales was $1,405,316 and the average price was $1,497,488.  In February 2023 the median price of the 7 Condominium sales was $808,000 and the average price was $861,429.  The lowest-priced Goleta sale in February 2023 was a Condominium on Dearborn Place @ $559,000 and the highest was a House on Meadowlark Lane @ $2,775,000.

Analysis

Sellers who had avoided listing their homes due to pandemic concerns moved forward in 2022 to list their properties, but the inventory of listings for sale still remained and to this day remains relatively low.  The historically low mortgage interest rates have risen dramatically since early 2022 when many would-be Sellers locked in on mortgage rates of 3% or less, so there is now a financial consideration to remain in their current homes.

All markets are hyper-localized, including the real estate market on the South Coast of Santa Barbara County with its still limited inventory and relatively higher values as compared to many other areas of California and the United States.  Focusing on the supply in any market is a good way to anticipate where the markets are heading.  Along the South Coast of Santa Barbara County as of February 1st, there were 86 active House/PUD listings (up from 78 in January) and 22 active Condominium listings available (down from 29 in January).  Historically there has been more inventory available in the higher price ranges than in the lower ranges; as of January 1st, 30% of the active House/PUD listings were located in the higher-valued Montecito and Hope Ranch areas.  Compare these current low totals to the inventory levels from 2007 to 2011 when the total number of active listings fluctuated between 734 and 1,026.  Historically the highest number of active listings along the South Coast was recorded in June of 1992 when there were an astounding 1,297 active listings available for Buyers to choose from.

In 2021 and 2022, there were only 2 bank-owned sales each year on the South Coast of Santa Barbara County.  There are no bank-owned listings available at this point in time.  Nationally, the rate of seriously past due mortgage debt was only 0.6% as of the 4th quarter of 2022, according to the Federal Reserve Bank of New York.  The reason there have been so few distress sales on the South Coast of Santa Barbara County is due to owner’s equity rising so quickly, allowing them to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few bankruptcy sales where the homeowner’s debt has had to be restructured resulting in the sale of a property.  To check out California’s foreclosure list by County, check out this link: California Foreclosure Trends by County .

The Federal Reserve (the Fed) had maintained a near-zero interest rate since early 2020 due to the negative effects on the world economy due to the pandemic and supply chain issues, but due to inflationary pressures, the Fed reversed course in 2022, began raising rates and that course continues into 2023.  Fed Chairman Jerome Powell on March 7th confirmed in his testimony to a Senate committee that the Fed is ready to increase the pace of its hikes again as needed.  Powell testified that “the ultimate level of interest rates is likely to be higher than previously anticipated.  If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.  Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time.”

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of March 6th, you could lock in a $647,200 30-year fixed-rate loan at 6% with a 1% closing fee if you used a mortgage broker, but large banking institutions seem to be offering the loans at 5%+ (sometimes this also requires a substantial deposit).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65%, which was matched again in July 2021.  The highest historical conforming mortgage rate was recorded in 1981 @ 18.63%.  As a comparison, a mortgage payment for a $647,200 mortgage in 1981 would have been $10,087/month, the payment in February 2021 would have been $2,608/month, and as of March 6th, the payment would be $3,880/month.  Increased mortgage interest rates have dissuaded many potential buyers from searching for a new home and discouraged some sellers from moving to a new home due to the low-interest mortgage payments they have locked in on their current home; this is now known as “Mortgage Lockdown”.

According to USA Today, the national average for all-cash real estate sales was 31.4%.  On the South Coast in February 2023, 33% of the sales were cash sales, up from 26% in January.  Review the attached list of the 69 properties sold on the South Coast of Santa Barbara County in February 2023 and/or contact me for information on specific sales.

Of the 73 sales in February 2023, 55 were over $1,000,000 which equates to 75.3% of the total sales, down from 75.4% in January.  The South Coast of Santa Barbara is not an inexpensive place to purchase real estate compared to most areas of the United States, but again many people will pay more to live and invest in Santa Barbara.  According to PropertyShark’s 2022 report, California has 7 of the 10 most expensive median-priced sales ZIP codes in the country.  Montecito’s 93108 ZIP came in at #8 nationally. https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us 

The NAHB/Wells Fargo Housing Market index in the US increased for a second month to 42 in February of 2023, the highest since September and beating market forecasts of 37. It is also the biggest monthly gain in nearly a decade excluding the rebound after 2020 COVID-19 lockdowns. The gauge for current sales conditions rose to 46 from 40, sales expectations in the next six months went up to 48 from 37, and traffic of prospective buyers edged 6 points higher to 29. “Even as the Federal Reserve continues to tighten monetary policy conditions, forecasts indicate that the housing market has passed peak mortgage rates for this cycle. And while we expect ongoing volatility for mortgage rates and housing costs, the building market should be able to achieve stability in the coming months, followed by a rebound trend back to home construction levels later in 2023 and the beginning of 2024”, said NAHB chief economist Robert Dietz.  For the full report check out https://tradingeconomics.com/united-states/nahb-housing-market-index

“Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.  “And, while 12-month inflation expectations improved—falling to 6.3 percent from 6.7 percent last month—consumers may be showing early signs of pulling back spending in the face of high prices and  rising interest rates. Fewer consumers are planning to purchase homes or autos and they also appear to be scaling back plans to buy major appliances.”  To review the full report: https://conference-board.org/data/consumerconfidence.cfm .

As for the worldwide cost of living as of March 2023, Expatistan compiled an index of 246 major metropolitan areas.  The cost of gasoline in these areas was checked on March 1st.  Expatistan’s list indicates that #7 San Francisco with a 202 Price Index score is the most expensive area in California (the least expensive gallon of regular gas costs $4.99) and the least expensive is #113 Modesto with a Price Index score of 118 ($4.12/gallon).  In the USA, the most expensive area to live in is #1 New York City @ 235 ($3.04/gallon) and the least expensive is #167 Cedar Rapids, Iowa @ 95 ($2.94/gallon).  Of the top 25 most expensive areas worldwide, 4 are in California including San Francisco @ #7, Los Angeles @ #15 ($4.69/gallon), #24 San Diego @ 174 ($4.89/gallon) and #25 San Jose @ 172 ($4.65/gallon).  The most expensive area to live in the world is New York City @ #1 and the least expensive is #246 Nagpur (India) @ 41 ($5.09/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices of $4.39/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is interesting to check out to compare the cost of living in cities around the world: https://www.expatistan.com/cost-of-living/index

In late February, Jiayi Xu at realtor.com wrote about national housing trends https://www.realtor.com/research/freddie-mac-mortgage-rates-feb-23-2023/ :

“The Freddie Mac fixed rate for a 30-year loan continued to rise to 6.5%, the highest level of 2023.  On an ordinary day, strong retail sales data and a 53-year low unemployment rate would be a cause for celebration among investors and businesses. However, under current conditions, these robust data raise uncertainties in the markets.  On one hand, the hotter-than-expected inflation might force the Fed to reopen doors to faster interest rate growth, which is unwelcome news for both investors and businesses. On the other hand, some policymakers did not interpret January’s data as signs of accelerating growth, choosing to wait for more information before deciding. As a result, they are in favor of implementing smaller rate hikes in the coming months, which would be welcomed by markets.”

Historically the highest Year-to-Date median sales price recorded on the Santa Barbara South Coast was recorded in 2007 at $1,031,500.  In February 2023 the median sales price was $1,476,000, down from $1,615,000 in January and down 14% from 2022.  The median sales  price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward swing in 2020, accelerating in 2021 and into most of 2022.  In early 2022 a new record-high median sales price was being set each month, but prices have now leveled off and declined.  In February 2023 the average South Coast sales price was $2,480,275, down from $2,673,549 in January.

Based on the Santa Barbara Multiple Listing Service data, as of March 1st in the City of Santa Barbara, there were 37 active House/PUD listings (up from 36 in February) and 26 pending sales (up from 18 in February), which equates to a low 1.42-month supply (down from 1.8 in January) of listings for Buyers to choose from.  Generally, a 1-month supply would indicate the listings would all be sold within one month.  A less than 1-month supply of inventory indicates a feverish Seller’s market, a 1-to-2-month supply indicates a heated Seller’s market and a 2-to-4-month supply would be considered a basic Seller’s market where Buyer demand is still high and inventory is scarce.  Historically a 4-to-6-month supply of available inventory would indicate a fairly well-balanced, normal market between Buyers and Sellers.  Typically more than a 6-month supply is considered to be a Buyer’s market where inventory is plentiful; Buyers will be slower to make decisions as they compare the numerous properties on the market.  Based on Santa Barbara Multiple Listing Service data and as of March 1st, Carpinteria/Summerland had a 6-month supply (up from 2.4 in February), Montecito had a 4-month supply (down from 9.5 in February), Goleta had a .67-month supply (down from 1.5 in February) and Hope Ranch had a 7-month supply (up from 2.3 in February).  These inventory statistics indicate that Santa Barbara remains in a heated Seller’s market.  Goleta has crossed over into a feverish Seller’s market. Carpinteria/Summerland are in a balanced market.  Hope Ranch is now in a basic Buyer’s market and Montecito has crossed over into a basic Seller’s market.  With a combined total of 49 House/PUD pending sales (up from 38 in February) and 86 active listings (equal to February) on the South Coast of Santa Barbara County, there is only a 1.75-month supply (down from 2.3 in February) of House/PUD listings from which Buyers can choose.  With a combined total of 20 Condominium pending sales (up from 15 in February) and only 20 active listings (down from 22 in February) on the South Coast of Santa Barbara County, there is a 1-month supply (down from 1.5 in February) of Condominium listings from which Buyers can choose.  The South Coast market as a whole still remains entrenched in a variety of Seller and balanced markets, except for Hope Ranch which is now in a Buyer’s Market.  As our market is in a transition flux, there is still a lack of inventory for Buyers to choose from.  Even with all the negative national press, Santa Barbara real estate values have been more resilient to the downward pressures than other parts of the country: people just want to live on the South Coast of Santa Barbara County.

While the economic ramifications of the concerns about the pandemic have mellowed, the war in Ukraine, high inflation, the cost of gasoline, scarcity of insurance coverage in California or rising premiums, rising mortgage rates, and the possibility of recession are all concerns to many Buyers, and Sellers.  Since Proposition 19 has taken full effect, 55+ year-old homeowners can transfer their existing real estate tax base to a home anywhere in California, which should encourage some older Sellers to sell their homes.  Mortgage interest rates have risen lately and are nowhere near the historic lows of the last few years.  Low inventory and accelerated pandemic migratory trends toward smaller cities all led to a surge in Santa Barbara property values.  Market corrections will affect values on the South Coast of Santa Barbara, but not as much as in many other areas.  Listings may stay on the market a bit longer than in 2022, but there are still multiple offers on alluring properties; one property I know of had 27 offers on it in February.  With continuing low inventory, supply and demand dynamics have and will continue to affect the South Coast of the Santa Barbara Real Estate Market now and for a long time to come.

Feel free to contact me with any specific questions.

Stan Tabler, CRS, GRI, ABR, GREEN

Compass

801 Chapala Street

Santa Barbara, CA 93101

805.689.2305

[email protected]

http://www.stantabler.com

CalBRE Brokers License #00774377 since 1980

Final Goleta Home Buying Walk Through

You’ve found the home of your dreams, negotiated the contract and you’ve been running around making plans and getting ready to move – closing is just days away! There are just a few more steps before the keys to your new Goleta Real Estate are in your hands. One of these important steps is the Final Goleta Home Buying Walk Through. There is a lot that can happen in the final days before closing. Movers may have damaged a wall or the floor during the seller’s move, perhaps the curtains you negotiated into the deal have been taken down, or maybe the previous owner left the garage full of boxes and trash. Anything can happen, which is why it is imperative to complete a final walk through whether you are Buying a Second Home or Vacation Home or are moving into your primary residence.  Here are a few tips to remember when touring the home for the final time:

  1. Check steps, sidewalks, driveways and patios for any noticeable change.
  2. Verify the condition of doors and windows, including locks.
  3. Check garage door and openers, as well as exterior lights and motion-activated lights.
  4. Flush all toilets and check all faucets.
  5. Check all appliances to ensure they are in working order, including water heater.
  6. Check ceilings, walls and floors for any new damage.
  7. Verify heating and air is operational.
  8. Ensure all negotiated terms from the contract are present and in the expected condition.
  9. Ensure that all the seller’s personal items and debris have been removed from the property.

As your Goleta Realtor, one of my responsibilities to both buyers and sellers is to ensure that this Final Goleta Home Buying Walk Through is completed to everyone’s satisfaction. If you’re considering the purchase or sale of a Goleta home or any property in the Santa Barbara area, it would be my pleasure to discuss the final walk through and many other details with you.

With more than three decades of real estate experience within this community, I have helped countless numbers of buyers and sellers reach their real estate goals. Whether you’d like more information on the Final Goleta Home Buying Walk Through or would like to speak with me to learn more about the community and its real estate, please do not hesitate to contact me today! I look forward to hearing from you soon.

Montecito Real Estate Closing Process

What’s next? After you have worked tirelessly to find the home of your dreams, it’s time for the closing process to begin. Simply put, closing occurs when you sign the papers to make the house yours. However, before that day arrives the Montecito Real Estate Closing Process involves several important steps that are put in place to protect all parties. As your Montecito Real Estate Agent, it would be my pleasure to guide you and assist you throughout the entire process from beginning to end.

 

  1. Open Escrow – Escrow is an account held by a third party. This third party will hold the escrow amount you agreed upon in your purchase agreement until closing.
  2. Title Search and Title Insurance – When purchasing Montecito California Real Estate, title search and insurance provide peace of mind and legal safeguard so that when you buy a property, no one else can try to claim it as theirs later. A title officer will perform the search to make sure there are no clouds on the title.
  3. Appraisal – A lender will want to make sure you’re borrowing an amount equal or less than the home’s market value.
  4. Home Inspection – While a home inspection is not required, most buyers will choose to have an inspection to ensure they understand the condition of the home they are purchasing. If there are serious problems uncovered during inspection, you will generally have the opportunity to renegotiate or back out of the agreement.
  5. Final Walkthrough – This is one of the last steps before you sign closing papers to ensure no damage has occurred and nothing has been removed that is included in the purchase.
  6. Closing Day – It is imperative to review each closing document thoroughly before completing the Montecito Real Estate Closing Process. Generally, the buyer and seller, as well as their agents, will be present at the closing. Once all legal documents are signed, the title company will officially record the deed and other legal documents with the appropriate government agencies.

These are the very basic steps of the Montecito Real Estate Closing Process. It is important to remember that each purchase or sale is unique and that it is always in your best interest to have a local real estate professional assist you from beginning to end. Please take a moment to browse my blog and my website and let me know if you have any questions or if I can be of any assistance. You may also enjoy my recent Montecito Real Estate Market Report. There has never been a better time to consider the purchase of Montecito real estate. Contact me at your convenience to learn more!

Santa Ynez Home Buyers and Sellers Checklist

Overwhelmed? Taking care of all the little details when it comes time to purchase or sell your Santa Ynez Valley Homes can seem daunting. There are many factors to consider and deadlines to meet to ensure your transaction stays on track. As a local real estate professional that has been assisting buyers and sellers just like you for more than forty years, I’ve developed a Santa Ynez Home Buyers and Sellers Checklist to assist you.

 

Santa Ynez Home Buyers and Sellers Checklist For Buyers:

  • Determine how much you can spend by speaking with a knowledgeable mortgage consultant. This may include checking your credit reports and learning how much you can borrow.

  • Find a local real estate professional that has the in-depth community knowledge today’s Santa Ynez Valley homebuyer needs.

  • Research potential neighborhoods. Begin making a list of features you want in a home, and start house hunting with your Realtor.

  • Make an offer.

  • Get an inspection, appraisal and begin working towards the closing process.

 

Santa Ynez Home Buyers and Sellers Checklist For Sellers:

  • Educate yourself about the current market data and trends in your neighborhood

  • Prepare your home. Clean and de-clutter all areas of the home. Speak with your Realtor about any changes or upgrades that may need to be addressed before placing your home for sale.

  • Price your home to sell. Take time to discuss this thoroughly with your Realtor.

  • Work to keep you home clean and tidy so you are always ready for showings.

  • Be realistic with all offers and take the emotions out of your decision.

These are just a few steps that you and your Realtor will need to take to ensure your transaction is as smooth and successful as possible. If you are investing in property, I encourage you to also read by blog entitled: Santa Ynez Investment Properties Do and Don’t List. If you’re ready to start browsing the real estate market or would like to discuss selling your Santa Ynez home, contact me today! I am always available for consultation and look forward to sharing my wonderful community with you! Let’s get started today.

Santa Ynez Investment Properties Do and Don’t List

Offering world-class wineries, verdant vineyards, sprawling ranches and six small towns, the Santa Ynez Valley is praised by locals and visitors alike for its rural-agricultural heritage and sophisticated “wine country” ambiance. In spite of the area’s relaxed atmosphere, Santa Ynez Valley Real Estate allows residents to enjoy an active lifestyle including golf, biking, hiking and horseback riding, as well as excellent fishing at nearby Lake Cachuma. An ideal location for investment, I have compiled this Santa Ynez Investment Properties Do and Don’t List for your convenience.

 

When considering the purchase of any investment property, it is important to complete a Santa Ynez Home Buyers and Sellers Checklist to ensure you stay focused and to move efficiently through the transaction. Here are a few investment pointers:

 

  • Do analyze your finances and make sure you can take on an investment property at this time.

  • Do make sure you are prequalified for a loan.

  • Do hire a knowledgeable and respected real estate professional, and be sure to research the current market in the community of your choice.

  • Do make sure you fully inspect properties to ensure that there are no large issues that will significantly change the total cost of your investment.

  • Don’t overestimate the value of rental properties. Your property may sit vacant for some time and you will need to account for this.

  • Don’t get invested emotionally in the process.

  • Don’t rush through the process. Take your time to find the investment that suits your wants and needs.

  • Don’t rely on seller’s documentations. Always have a third party verify title.

 

These are just a few tips to place on your Santa Ynez Investment Properties Do and Don’t List. It is important to remember that each house and each transaction are unique and that the guidance of a local real estate professional in these cases can be vital to your success.

 

As your Santa Ynez Valley Realtor, please do not hesitate to contact me if you have any questions about the Santa Ynez Investment Properties Do and Don’t List or any of the information you find on my website. I’d love to hear from you and look forward to helping you find the investment property that not only suits your needs, but that also exceeds your expectations. Let’s get started today!

Entertainment in Carpinteria and Summerland California Area

Positioned quietly between Ventura and Santa Barbara County, Carpinteria is a small, enchanting ocean-side town that is renowned for its exceptional bluffs and seemingly endless beaches. Entertainment in Carpinteria & Summerland California Area includes everything from surf and sea right outside your front door to bike riding, camping, a walk along the Salt Marsh Reserve, fine dining, world-class shopping and much, much more.

 

Carpinteria Real Estate allows residents and visitors alike to participate in endless recreational, social and cultural activities throughout the year. One great example is the highly celebrated Avocado Festival. Each year the festival can be found along Linden Avenue with everything from award winning guacamole to homemade avocado ice cream. Speaking of food, you will also find a wealth of great restaurants including Carp’s one-stop hamburger shack, Robitaille’s Fine Candies, Island Brewing Company, Cajun Kitchen Café and Hugos Restaurant. You will also find Hollandia Produce, an organic produce company, rounding off the shopping and Entertainment in Carpinteria & Summerland California Area.

 

Other fantastic sources of Entertainment in Carpinteria & Summerland California Area are the many hiking trails and hot springs found in the neighboring community of Ojai, the events and activities at the Santa Barbara Polo Fields and of course the endless beaches and ocean waves.

 

As your Carpinteria and Summerland Realtor, it would be my pleasure to introduce you to the area and to the many activities, amenities and luxuries found here. I encourage you to browse my website at your convenience and look forward to assisting you with any and all your real estate needs. You may also be interested in my recent blog entitled: How Do I Price My Carpinteria and Summerland Home? Contact me today to get started whether buying, selling or investing!

How Do I Price My Carpinteria and Summerland Home?

When it comes to putting your Carpinteria and Summerland Real Estate on the market, determining the right asking price is one of the most important decisions you and your Realtor will make. If you’re asking the question –  “How Do I Price My Carpinteria and Summerland Home?” – you’re headed in the right direction. With the help of a qualified and experienced Carpinteria Real Estate Agent, you should have no problem setting the right price for your home and attracting more potential buyers to your property.

 

When determining the appropriate asking price, real estate professionals take several things into consideration. Some of these include: comparable listings and sales, withdrawn and expired listings, pending sales, square foot cost comparisons and the overall condition of the local market. Once these items have been reviewed, a good Realtor will be able to answer: “How Do I Price My Carpinteria and Summerland Home.”

 

As a seller, it is also important to look at the selling of your home as objectively as possible and to try to keep emotions out of the equation. Equally as important is to remember that pricing your home too high could have a very negative impact on the marketability of your home. By setting a price that is too high, your home could likely become “stale” in the market and will need to be removed from the market for a period of time. If the property is priced too high and sits too long, potential buyers will think negatively of the property. Therefore, in order to get your home sold in the quickest possible time period, it is important for you to give serious consideration to the price suggested by your Realtor.

 

If you’re still wondering, “How Do I Price My Carpinteria and Summerland Home?” or would like to learn more about Entertainment in Carpinteria & Summerland California Area, I encourage you to browse my website and blog at your leisure. Please contact me if you have any questions. It would be my great pleasure to help you with any and all of your real estate goals!

Vacationing in Montecito California & The Santa Barbara Area

“Little mountain, little forest” – the ideal name for this exceptional area of winding, tree-shaded lanes reminiscent of an English countryside. The small, upscale beach community of Montecito, California has long been renowned for its exceptional beach access, beautiful boutiques, cafes and restaurants, and for the unparalleled luxury Montecito Real Estate found throughout the community. If you are considering Vacationing in Montecito California & The Santa Barbara Area, you will find endless beaches, from Butterfly Beach down to Fernald’s Point, on which to enjoy a long leisurely stroll in the sun and a dip in the Pacific Ocean.

Today, many who vacation in the area are considering the purchase of a Montecito Vacation Home. With interest rates at an all-time low and a myriad of exceptional real estate opportunities available throughout Montecito and Santa Barbara, there has never been a better time to make the dream of owning a beachfront property a reality. Whether you are looking for a luxury estate-sized home right on the ocean or a quiet condominium tucked away from the hustle and bustle, Montecito and the Santa Barbara area have it all. Montecito also offers exceptional shopping opportunities at both the “Lower Village” on Coast Village Road and the “Upper Village” on East Valley Road.

When thinking about purchasing a home for use when Vacationing in Montecito California & The Santa Barbara Area, it is important to understand that a home can be much more valuable if it’s rentable. You may think you’ll keep the retreat all to yourself, but it is smart to shop as though you are going to rent the home out. As a local real estate professional with more than 30 years of experience in this community, I can help you find the property to not only meet your needs, but to also exceed your expectations.

I encourage you to browse my blog and my website at your leisure to learn more about Vacationing in Montecito California & The Santa Barbara Area as well as to learn more about our community including the Montecito Real Estate Closing Process. Should you have any questions or would like to speak with me regarding your specific needs, please do not hesitate to contact me directly! Let’s get started today!


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Contact Stan

Stan Tabler, CRS, GRI, ABR
Stan TablerRealtor of the Year
Compass California
DRE #00774377 since 1980
801 Chapala Street
Santa Barbara, CA 93101
(805) 689-2305
[email protected]