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

November 10, 2023 

According to data obtained from the County Recorder’s Office by Fidelity National Title, residential property sales on the Santa Barbara South Coast decreased by 8% in October 2023, with 90 sales recorded, compared to 98 in 2022.  Out of the 90 sales in October 2023, 70 were houses or planned unit developments (PUDs), equal to the sales in 2022.  The median price of these House/PUD sales was $2,110,000, up 4% from 2022, and the average sale price was $3,286,204, up 13% from 2022.  There were 20 Condominium sales in October 2023, down 29% from 2022.  The median price of these Condominium sales was $902,500, down 10% from 2022, and the average sale price was $1,225,100, up 5% from 2022.  Year-to-date in 2023, there has been a total of 949 residential property sales on the South Coast of Santa Barbara County, down 26% from 2022. The year-to-date median price for all residential property sales as of October 2023 was $1,715,000, down 1% from 2022, and the average sale price was $2,653,265, down 2% from 2022.

In Carpinteria, there were a total of 6 residential sales in October 2023, down from 13 in September.  In October 2023 the median price of the 4 House/PUD sales was $1,977,978 and the average price was $2,195,239.  In October 2023 the median and average price of the 2 Condominium sales was $902,500.  The lowest-priced Carpinteria sale in October 2023 was a Condominium on Foothill Road @ $820,000 and the highest was a House on Shepard Mesa Drive @ $3,625,000.

In Summerland, there was a total of 1 residential sale in October 2023, down from 4 sales in September.  In October 2023 the price of the 1 sale was $1,800,000.  The 1 sale in Summerland in October 2023 was a House on Whitney Avenue @ $1,800,000.

In Montecito, there were a total of 14 residential sales in October 2023, down from 17 in September.  In October 2023 the median price of the 12 House/PUD sales was $7,000,415 and the average price was $7,885,852.  In October 2023 the median and average price of the 2 Condominium sales was $3,442,500.  The lowest-priced Montecito sale in October 2023 was a House on Barker Pass Road @ $2,250,000 and the highest was an Estate on Freehaven Drive @ $20,350,000.

In Santa Barbara, there were a total of 43 residential sales in October 2023, down from 45 in September.  In October 2023 the median price of the 35 House/PUD sales was $1,929,000 and the average price was $2,170,000.  In October 2023 the median price of the 8 Condominium sales was $902,500 and the average price was $991,625.  The lowest-priced Santa Barbara sale in October 2023 was a Condominium on Richland Drive @ $600,000 and the highest was a PUD on Lighthouse Way @ $3,700,000.

In Hope Ranch, there were a total of 2 sales in October 2023, equal to 2 in September.  In October 2023 the median and average price of the 2 sales was $6,535,500.  There are no Condominiums in Hope Ranch.  The lowest-priced Hope Ranch sale in October 2023 was a House on Las Palmas Drive @ $4,960,000 and the highest was an Estate on Cresta Avenue @ $8,111,000.

In Goleta, there were a total of 21 residential sales in October 2023, up from 17 in September.  In October 2023 the median price of the 16 House/PUD sales was $1,497,500 and the average price was $2,235,781.  In October 2023 the median price of the 5 Condominium sales was $705,000 and the average price was $832,714.  The lowest-priced Goleta sale in October 2023 was a Condominium on Overpass Road @ $650,000 and the highest was an Estate/Ranch on Franklin Ranch Road @ $8,000,000.

Analysis

The real estate market on the Santa Barbara South Coast has been affected by various factors.  Many Sellers who were previously hesitant to list their homes due to the pandemic, listed and sold their properties in 2022, but the inventory of 2023 listings for sale still remains relatively low.  Historically low mortgage interest rates have risen dramatically since earlier in 2022 and as of November 1st they lingered just below 8%.  Another reason for our low inventory levels is that homeowners with mortgage interest rates of 3% or 4% are reluctant to sell and buy another home at a much higher rate.

 As of November 1st, there were 153 (down from 168 in October) active House/PUD listings and 33 (up from 31 in October) active Condominium listings available along the Santa Barbara South Coast.  This is a significant reduction compared 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 Santa Barbara South Coast was recorded in June of 1992 when there were an astonishing 1,297 active listings available for Buyers to choose from.

Bank-owned sales on Santa Barbara’s South Coast have been very rare; in all of 2021 and 2022, there were only 4 bank-owned sales.  There have been no bank-owned sales in 2023.  Currently the one bank-owned listing that was available expired after 436 days on the market; an oceanfront estate on Marina Drive in Hope Ranch listed for $21,500,000 (this may rate as the highest value bank-owned residential property in all of California).   Mortgage payment delinquency rates fell to 3.37% at the end of the second quarter of 2023, according to the Mortgage Bankers Association’s National Delinquency Survey, their lowest since the MBA began collecting data in 1979 and down from 3.64% year-on-year.  Rising home equity has allowed most owners to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few short sales and bankruptcy sales where an owner’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 .

On November 1st, Federal Reserve (The Fed) Chair Jerome Powell said that while he has always believed that a so-called soft landing was a “plausible outcome” for the economy, it isn’t guaranteed and that he wasn’t willing to give up on bringing down inflation to achieve it.  The Fed left interest rates unchanged at the moment, but economic projections showed one more quarter-point rate hike is possible this year.  Higher inflation is waning, but soaring energy costs could muck up a recovery.

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of November 1st, you could lock in a $726,200 30-year fixed-rate loan at 7.750% with a 1% loan fee (up from 7.375% in September).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65% and that rate was matched yet again in July 2021 during the pandemic.  The highest historical 30-year fixed-rate interest rate was recorded in 1981 @ 18.63%.  The average 30-year fixed-rate mortgage interest rate over the last 50 years has been 7.74%, so interest rates are now matching that average.  The 23-year high in mortgage rates follows all-time lows reached just three years ago and highlights the effect that financing costs have on the housing market, a particularly rate sensitive sector of the economy. As a comparison, a mortgage payment for a $726,200 mortgage in 1981 would have been $11,318/month, the payment in July 2021 would have been $2,926/month, and as of November 1st, that payment would be $5,203/month.  Many potential buyers have switched to applying for adjustable-rate loans in anticipation of fixed-rate mortgages moving lower in the future.  At the same time, many  homeowners are waiting, unwilling to list their homes and trade their sub-3% mortgages to borrow at 7.9% for a replacement home.  This mortgage rate factor is one of the reasons there is limited listing inventory and therefore limiting 2023 home sales as compared to 2022.

According to Business Insider, cash buyers represented 33.4% of the national sale transactions, far above average levels of around 25% during the last 10 years.  In highly sought out areas cash Buyers represent a much higher percentage of sales; 69% in the City of Carmel, 65% in Manhattan (New York), 57% in Pebble Beach, and 54% in Pacific Grove.  On the Santa Barbara South Coast in October 2023, 39% of the sales were cash sales, down from 47% in September.

  

Of the 90 residential sales in October 2023, 76 were over $1,000,000 which equates to 84.4% of the total sales, down from 86.7% in September.  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 2023 report, California had 6 (down from 7 in 2022) of the 10 most expensive median-priced ZIP codes in the country.  Montecito’s 93108 ZIP code came in at #4 (up from #8 in 2022) of the most expensive ZIP codes in the USA, even beating out Beverly Hills.  Check out the full report: https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us 

U.S.News compiled surveys on the 24 most expensive places to live in the United States during the last year.  Their surveys were based on the median gross rent and annual housing costs for mortgage-paying homeowners of each city.  California had 12 of the 24 (50%!) cities that require the most wealth to live comfortably: Santa Barbara came in at #5.  To see the entire article, check out https://realestate.usnews.com/places/rankings/most-expensive-places-to-live

WalletHub assessed the states where people experience the most stress based on Work-related, Money-related, Family, and Health and safety-related stress……the top 7 most stressful states are West Virginia, Louisiana, Tennessee, Arkansas, Kentucky, Alabama, and Mississippi.  The least stressful states are Utah, Hawaii, Maryland, Minnesota, New Jersey, Connecticut and California!  To review this interesting article, check out https://wallethub.com/edu/happiest-states/6959

The NAHB/Wells Fargo Housing Market Index in the United States fell by 4 points to 40 in October 2023, falling short of the market consensus of 44. It was the third consecutive month of decreases, bringing the index to its lowest level since January, as high mortgage rates have been heavily impacting builder confidence and consumer demand. Specifically, the sub-index for current single-family home sales decreased by 4 points to 46, while the sub-index for expected home sales over the next six months also saw a significant 5-point drop, landing at 44.  Additionally, the gauge for prospective buyers dipped by 4 points to 26.  To review the whole article check out https://tradingeconomics.com/united-states/nahb-housing-market-index

The Conference Board Consumer Confidence Index declined moderately in October to 102.6 (1985=100), down from an upwardly revised 104.3 in September.  “Consumer confidence fell again in October 2023, marking three consecutive months of decline,” said Dana Peterson, Chief Economist at The Conference Board.  “October’s retreat reflected pullbacks in both the Present Situation and Expectations Index. Write-in responses showed that consumers  continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.”  To review the entire article check out https://www.conference-board.org/topics/consumer-confidence .

As for the worldwide cost of living as of  November 2023, Expatistan compiled an index of 200 major metropolitan areas.  Gas prices were checked on November 1st.  In the USA, the most expensive area to live in is #2 New York City with @ 226 Price Index score (the least expensive gallon of regular gas costs $3.53/gallon) and the least expensive is #132 Cedar Rapids, Iowa @ 88 ($2.98/gallon).  Expatistan’s list indicates that #5 San Francisco @ 201 is the most expensive area in California ($4.83/gallon) and the least expensive is #38 Walnut Creek @ 141 ($4.89/gallon).  Searching the entire state of California, the least expensive gallon of gas can be bought in Madera County for $4.38/gallon.  Of the top 25 most expensive areas worldwide, three are in California (down from four in October), #5 San Francisco, #11 Los Angeles @ 186 ($4.65/gallon), and #13 Oakland @ 183 ($4.98/gallon).  The most expensive area to live in the world is #1 Grand Cayman @ 217 ($6.19/gallon) and the least expensive is #200 Yogyakarta (Indonesia) @ 37 ($2.48/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices as low as $5.09/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is an interesting way to compare the cost of living in cities around the world:  https://www.expatistan.com/cost-of-living/index 

According to Realtor.com®’s October housing data dated November 2nd, the inventory of homes for sale continued to grow late into the year when it would typically decline as mortgage rates passed 20-year highs and continued to provide headwinds to both listing and home buying activity. The nation’s median home list price remained stable at last year’s levels but the share of price reductions continues to grow. While lower than last year, the share of price reductions rising could signal a softness in prices in the coming months.    Check out the full article at  https://www.realtor.com/research/october-2023-data/ 

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 October 2023 the median sales price for all residential sales was $1,715,000.  The median sales price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward climb in 2020, accelerating in 2021 and into most of 2022. 

In early 2022 record-high median sales prices were set each month and now in 2023, they have leveled off or declined slightly.  The average sale price of all residential sales in October was $2,653,265 which is up from $2,275,881 in 2022.

Based on the Santa Barbara Multiple Listing Service data, as of November 1st in the City of Santa Barbara, there were 64 active House/PUD listings (down from 77 in October) and 29 pending sales (up from 25 in October), which equates to a 2.2-month supply (down from 3.1 in October) 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 5-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 November 1st, Carpinteria/Summerland had a 16-month supply (dramatically up from 2.2 in October), Montecito had a 8.4-month supply (up from 4.8 in October), Goleta had a 1.5-month supply (up from 1.4 in October) and Hope Ranch had a 12-month supply (up from 5.5 in October).  These inventory statistics indicate that Goleta remains in a heated Seller’s market.  Carpinteria/Summerland, Montecito and Hope Ranch have all moved into a Buyer’s market.  The City of Santa Barbara remains in a basic Seller’s market.  With a combined total of 47 House/PUD pending sales (down from 51 in October) and 153 active listings (down from 168 in October) along the South Coast of Santa Barbara County, there is a 3.3-month supply (same as it was in October) of House/PUD listings from which Buyers can choose.  With a combined total of 23 Condominium pending sales (down from 53 in October) and only 33 active listings (up from 31 in October) on the South Coast of Santa Barbara County, there is a 1.4 -month supply (up from .58 in October) of Condominium listings from which Buyers can choose.  These statistics show that the Sellers of Condominiums are in firm control of sale prices, especially in Goleta.  The total South Coast of Santa Barbara County market remains in a state of transition and appears to be moving towards a Buyer’s market due to numerous factors.  While today’s Buyers are running into fewer multiple-offer situations, they will still pay a premium for a home with great amenities.  In many Buyer’s minds, the sense of urgency to purchase a home has tapered off a bit with more inventory to choose from and listings to pursue.  People still want to live along the Santa Barbara South Coast to enjoy the Mediterranean weather and our casual lifestyle.

While concerns about the pandemic’s economic impact have diminished, there are several other concerns for many Buyers and Sellers. These include the wars in Ukraine and the Middle East, inflation, the cost of gasoline, rising premiums, rising mortgage rates, and the possibility of a recession.  Now a major concern is the scarcity of homeowners’ insurance coverage, especially since State Farm and Allstate have recently refused to issue new insurance policies to California home buyers.  California’s Proposition 19, which has now taken full effect, allows homeowners aged 55+ to transfer their existing real estate tax base to a home anywhere in the State; this change should be encouraging to some older Sellers who wish to sell their current homes and find a suitable replacement. Due to low inventory and increased migration trends towards smaller cities during the pandemic, a trend which continues to this day, there has been a surge in property values on the Santa Barbara South Coast.  While market corrections may still negatively impact property values on the Santa Barbara South Coast, the impact is expected to be less severe compared to many other areas in the state and country.  New listings in 2023 may remain on the market a bit longer than in 2022, but each week I am still seeing multiple offers on certain well-priced listings.  Home values in the Santa Barbara South Coast Real Estate Market continue to be positively affected by supply and demand dynamics due to persistent low listing inventory; I expect this dynamic to continue into the foreseeable future.

Review the attached list of the 90 properties sold on the Santa Barbara South Coast in October 2023 and feel free to contact me for information on specific sales in our area.

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 October 2023

Single Family Residence Market

Median Sales Price = $2,110,000

Lowest Sale Price = $850,000

Highest Sale Price = $20,350,000

Condominium/PUD Market

Median Sales Price = $902,500

Lowest Sale Price = $600,000

Highest Sale Price = $3,695,000

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

November 10, 2023

According to data obtained from the County Recorder’s Office by Fidelity National Title, residential property sales on the Santa Barbara South Coast decreased by 8% in October 2023, with 90 sales recorded, compared to 98 in 2022.  Out of the 90 sales in October 2023, 70 were houses or planned unit developments (PUDs), equal to the sales in 2022.  The median price of these House/PUD sales was $2,110,000, up 4% from 2022, and the average sale price was $3,286,204, up 13% from 2022.  There were 20 Condominium sales in October 2023, down 29% from 2022.  The median price of these Condominium sales was $902,500, down 10% from 2022, and the average sale price was $1,225,100, up 5% from 2022.  Year-to-date in 2023, there has been a total of 949 residential property sales on the South Coast of Santa Barbara County, down 26% from 2022. The year-to-date median price for all residential property sales as of October 2023 was $1,715,000, down 1% from 2022, and the average sale price was $2,653,265, down 2% from 2022.

In Carpinteria, there were a total of 6 residential sales in October 2023, down from 13 in September.  In October 2023 the median price of the 4 House/PUD sales was $1,977,978 and the average price was $2,195,239.  In October 2023 the median and average price of the 2 Condominium sales was $902,500.  The lowest-priced Carpinteria sale in October 2023 was a Condominium on Foothill Road @ $820,000 and the highest was a House on Shepard Mesa Drive @ $3,625,000.

In Summerland, there was a total of 1 residential sale in October 2023, down from 4 sales in September.  In October 2023 the price of the 1 sale was $1,800,000.  The 1 sale in Summerland in October 2023 was a House on Whitney Avenue @ $1,800,000.

In Montecito, there were a total of 14 residential sales in October 2023, down from 17 in September.  In October 2023 the median price of the 12 House/PUD sales was $7,000,415 and the average price was $7,885,852.  In October 2023 the median and average price of the 2 Condominium sales was $3,442,500.  The lowest-priced Montecito sale in October 2023 was a House on Barker Pass Road @ $2,250,000 and the highest was an Estate on Freehaven Drive @ $20,350,000.

In Santa Barbara, there were a total of 43 residential sales in October 2023, down from 45 in September.  In October 2023 the median price of the 35 House/PUD sales was $1,929,000 and the average price was $2,170,000.  In October 2023 the median price of the 8 Condominium sales was $902,500 and the average price was $991,625.  The lowest-priced Santa Barbara sale in October 2023 was a Condominium on Richland Drive @ $600,000 and the highest was a PUD on Lighthouse Way @ $3,700,000.

In Hope Ranch, there were a total of 2 sales in October 2023, equal to 2 in September.  In October 2023 the median and average price of the 2 sales was $6,535,500.  There are no Condominiums in Hope Ranch.  The lowest-priced Hope Ranch sale in October 2023 was a House on Las Palmas Drive @ $4,960,000 and the highest was an Estate on Cresta Avenue @ $8,111,000.

In Goleta, there were a total of 21 residential sales in October 2023, up from 17 in September.  In October 2023 the median price of the 16 House/PUD sales was $1,497,500 and the average price was $2,235,781.  In October 2023 the median price of the 5 Condominium sales was $705,000 and the average price was $832,714.  The lowest-priced Goleta sale in October 2023 was a Condominium on Overpass Road @ $650,000 and the highest was an Estate/Ranch on Franklin Ranch Road @ $8,000,000.

Analysis

The real estate market on the Santa Barbara South Coast has been affected by various factors.  Many Sellers who were previously hesitant to list their homes due to the pandemic, listed and sold their properties in 2022, but the inventory of 2023 listings for sale still remains relatively low.  Historically low mortgage interest rates have risen dramatically since earlier in 2022 and as of November 1st they lingered just below 8%.  Another reason for our low inventory levels is that homeowners with mortgage interest rates of 3% or 4% are reluctant to sell and buy another home at a much higher rate.

As of November 1st, there were 153 (down from 168 in October) active House/PUD listings and 33 (up from 31 in October) active Condominium listings available along the Santa Barbara South Coast.  This is a significant reduction compared 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 Santa Barbara South Coast was recorded in June of 1992 when there were an astonishing 1,297 active listings available for Buyers to choose from.

Bank-owned sales on Santa Barbara’s South Coast have been very rare; in all of 2021 and 2022, there were only 4 bank-owned sales.  There have been no bank-owned sales in 2023.  Currently the one bank-owned listing that was available expired after 436 days on the market; an oceanfront estate on Marina Drive in Hope Ranch listed for $21,500,000 (this may rate as the highest value bank-owned residential property in all of California).   Mortgage payment delinquency rates fell to 3.37% at the end of the second quarter of 2023, according to the Mortgage Bankers Association’s National Delinquency Survey, their lowest since the MBA began collecting data in 1979 and down from 3.64% year-on-year.  Rising home equity has allowed most owners to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few short sales and bankruptcy sales where an owner’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 .

On November 1st, Federal Reserve (The Fed) Chair Jerome Powell said that while he has always believed that a so-called soft landing was a “plausible outcome” for the economy, it isn’t guaranteed and that he wasn’t willing to give up on bringing down inflation to achieve it.  The Fed left interest rates unchanged at the moment, but economic projections showed one more quarter-point rate hike is possible this year.  Higher inflation is waning, but soaring energy costs could muck up a recovery.

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of November 1st, you could lock in a $726,200 30-year fixed-rate loan at 7.750% with a 1% loan fee (up from 7.375% in September).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65% and that rate was matched yet again in July 2021 during the pandemic.  The highest historical 30-year fixed-rate interest rate was recorded in 1981 @ 18.63%.  The average 30-year fixed-rate mortgage interest rate over the last 50 years has been 7.74%, so interest rates are now matching that average.  The 23-year high in mortgage rates follows all-time lows reached just three years ago and highlights the effect that financing costs have on the housing market, a particularly rate sensitive sector of the economy. As a comparison, a mortgage payment for a $726,200 mortgage in 1981 would have been $11,318/month, the payment in July 2021 would have been $2,926/month, and as of November 1st, that payment would be $5,203/month.  Many potential buyers have switched to applying for adjustable-rate loans in anticipation of fixed-rate mortgages moving lower in the future.  At the same time, many  homeowners are waiting, unwilling to list their homes and trade their sub-3% mortgages to borrow at 7.9% for a replacement home.  This mortgage rate factor is one of the reasons there is limited listing inventory and therefore limiting 2023 home sales as compared to 2022.

According to Business Insider, cash buyers represented 33.4% of the national sale transactions, far above average levels of around 25% during the last 10 years.  In highly sought out areas cash Buyers represent a much higher percentage of sales; 69% in the City of Carmel, 65% in Manhattan (New York), 57% in Pebble Beach, and 54% in Pacific Grove.  On the Santa Barbara South Coast in October 2023, 39% of the sales were cash sales, down from 47% in September.  

Of the 90 residential sales in October 2023, 76 were over $1,000,000 which equates to 84.4% of the total sales, down from 86.7% in September.  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 2023 report, California had 6 (down from 7 in 2022) of the 10 most expensive median-priced ZIP codes in the country.  Montecito’s 93108 ZIP code came in at #4 (up from #8 in 2022) of the most expensive ZIP codes in the USA, even beating out Beverly Hills.  Check out the full report: https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us

U.S.News compiled surveys on the 24 most expensive places to live in the United States during the last year.  Their surveys were based on the median gross rent and annual housing costs for mortgage-paying homeowners of each city.  California had 12 of the 24 (50%!) cities that require the most wealth to live comfortably: Santa Barbara came in at #5.  To see the entire article, check out https://realestate.usnews.com/places/rankings/most-expensive-places-to-live

WalletHub assessed the states where people experience the most stress based on Work-related, Money-related, Family, and Health and safety-related stress……the top 7 most stressful states are West Virginia, Louisiana, Tennessee, Arkansas, Kentucky, Alabama, and Mississippi.  The least stressful states are Utah, Hawaii, Maryland, Minnesota, New Jersey, Connecticut and California!  To review this interesting article, check out https://wallethub.com/edu/happiest-states/6959

The NAHB/Wells Fargo Housing Market Index in the United States fell by 4 points to 40 in October 2023, falling short of the market consensus of 44. It was the third consecutive month of decreases, bringing the index to its lowest level since January, as high mortgage rates have been heavily impacting builder confidence and consumer demand. Specifically, the sub-index for current single-family home sales decreased by 4 points to 46, while the sub-index for expected home sales over the next six months also saw a significant 5-point drop, landing at 44.  Additionally, the gauge for prospective buyers dipped by 4 points to 26.  To review the whole article check out https://tradingeconomics.com/united-states/nahb-housing-market-index

The Conference Board Consumer Confidence Index declined moderately in October to 102.6 (1985=100), down from an upwardly revised 104.3 in September.  “Consumer confidence fell again in October 2023, marking three consecutive months of decline,” said Dana Peterson, Chief Economist at The Conference Board.  “October’s retreat reflected pullbacks in both the Present Situation and Expectations Index. Write-in responses showed that consumers  continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.”  To review the entire article check out https://www.conference-board.org/topics/consumer-confidence .

As for the worldwide cost of living as of  November 2023, Expatistan compiled an index of 200 major metropolitan areas.  Gas prices were checked on November 1st.  In the USA, the most expensive area to live in is #2 New York City with @ 226 Price Index score (the least expensive gallon of regular gas costs $3.53/gallon) and the least expensive is #132 Cedar Rapids, Iowa @ 88 ($2.98/gallon).  Expatistan’s list indicates that #5 San Francisco @ 201 is the most expensive area in California ($4.83/gallon) and the least expensive is #38 Walnut Creek @ 141 ($4.89/gallon).  Searching the entire state of California, the least expensive gallon of gas can be bought in Madera County for $4.38/gallon.  Of the top 25 most expensive areas worldwide, three are in California (down from four in October), #5 San Francisco, #11 Los Angeles @ 186 ($4.65/gallon), and #13 Oakland @ 183 ($4.98/gallon).  The most expensive area to live in the world is #1 Grand Cayman @ 217 ($6.19/gallon) and the least expensive is #200 Yogyakarta (Indonesia) @ 37 ($2.48/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices as low as $5.09/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is an interesting way to compare the cost of living in cities around the world:  https://www.expatistan.com/cost-of-living/index 

According to Realtor.com®’s October housing data dated November 2nd, the inventory of homes for sale continued to grow late into the year when it would typically decline as mortgage rates passed 20-year highs and continued to provide headwinds to both listing and home buying activity. The nation’s median home list price remained stable at last year’s levels but the share of price reductions continues to grow. While lower than last year, the share of price reductions rising could signal a softness in prices in the coming months.    Check out the full article at  https://www.realtor.com/research/october-2023-data/

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 October 2023 the median sales price for all residential sales was $1,715,000.  The median sales price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward climb in 2020, accelerating in 2021 and into most of 2022.

In early 2022 record-high median sales prices were set each month and now in 2023, they have leveled off or declined slightly.  The average sale price of all residential sales in October was $2,653,265 which is up from $2,275,881 in 2022.

Based on the Santa Barbara Multiple Listing Service data, as of November 1st in the City of Santa Barbara, there were 64 active House/PUD listings (down from 77 in October) and 29 pending sales (up from 25 in October), which equates to a 2.2-month supply (down from 3.1 in October) 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 5-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 November 1st, Carpinteria/Summerland had a 16-month supply (dramatically up from 2.2 in October), Montecito had a 8.4-month supply (up from 4.8 in October), Goleta had a 1.5-month supply (up from 1.4 in October) and Hope Ranch had a 12-month supply (up from 5.5 in October).  These inventory statistics indicate that Goleta remains in a heated Seller’s market.  Carpinteria/Summerland, Montecito and Hope Ranch have all moved into a Buyer’s market.  The City of Santa Barbara remains in a basic Seller’s market.  With a combined total of 47 House/PUD pending sales (down from 51 in October) and 153 active listings (down from 168 in October) along the South Coast of Santa Barbara County, there is a 3.3-month supply (same as it was in October) of House/PUD listings from which Buyers can choose.  With a combined total of 23 Condominium pending sales (down from 53 in October) and only 33 active listings (up from 31 in October) on the South Coast of Santa Barbara County, there is a 1.4 -month supply (up from .58 in October) of Condominium listings from which Buyers can choose.  These statistics show that the Sellers of Condominiums are in firm control of sale prices, especially in Goleta.  The total South Coast of Santa Barbara County market remains in a state of transition and appears to be moving towards a Buyer’s market due to numerous factors.  While today’s Buyers are running into fewer multiple-offer situations, they will still pay a premium for a home with great amenities.  In many Buyer’s minds, the sense of urgency to purchase a home has tapered off a bit with more inventory to choose from and listings to pursue.  People still want to live along the Santa Barbara South Coast to enjoy the Mediterranean weather and our casual lifestyle.

While concerns about the pandemic’s economic impact have diminished, there are several other concerns for many Buyers and Sellers. These include the wars in Ukraine and the Middle East, inflation, the cost of gasoline, rising premiums, rising mortgage rates, and the possibility of a recession.  Now a major concern is the scarcity of homeowners’ insurance coverage, especially since State Farm and Allstate have recently refused to issue new insurance policies to California home buyers.  California’s Proposition 19, which has now taken full effect, allows homeowners aged 55+ to transfer their existing real estate tax base to a home anywhere in the State; this change should be encouraging to some older Sellers who wish to sell their current homes and find a suitable replacement. Due to low inventory and increased migration trends towards smaller cities during the pandemic, a trend which continues to this day, there has been a surge in property values on the Santa Barbara South Coast.  While market corrections may still negatively impact property values on the Santa Barbara South Coast, the impact is expected to be less severe compared to many other areas in the state and country.  New listings in 2023 may remain on the market a bit longer than in 2022, but each week I am still seeing multiple offers on certain well-priced listings.  Home values in the Santa Barbara South Coast Real Estate Market continue to be positively affected by supply and demand dynamics due to persistent low listing inventory; I expect this dynamic to continue into the foreseeable future.

Review the attached list of the 90 properties sold on the Santa Barbara South Coast in October 2023 and feel free to contact me for information on specific sales in our area.

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

November 10, 2023 

According to data obtained from the County Recorder’s Office by Fidelity National Title, residential property sales on the Santa Barbara South Coast decreased by 8% in October 2023, with 90 sales recorded, compared to 98 in 2022.  Out of the 90 sales in October 2023, 70 were houses or planned unit developments (PUDs), equal to the sales in 2022.  The median price of these House/PUD sales was $2,110,000, up 4% from 2022, and the average sale price was $3,286,204, up 13% from 2022.  There were 20 Condominium sales in October 2023, down 29% from 2022.  The median price of these Condominium sales was $902,500, down 10% from 2022, and the average sale price was $1,225,100, up 5% from 2022.  Year-to-date in 2023, there has been a total of 949 residential property sales on the South Coast of Santa Barbara County, down 26% from 2022. The year-to-date median price for all residential property sales as of October 2023 was $1,715,000, down 1% from 2022, and the average sale price was $2,653,265, down 2% from 2022.

In Carpinteria, there were a total of 6 residential sales in October 2023, down from 13 in September.  In October 2023 the median price of the 4 House/PUD sales was $1,977,978 and the average price was $2,195,239.  In October 2023 the median and average price of the 2 Condominium sales was $902,500.  The lowest-priced Carpinteria sale in October 2023 was a Condominium on Foothill Road @ $820,000 and the highest was a House on Shepard Mesa Drive @ $3,625,000.

In Summerland, there was a total of 1 residential sale in October 2023, down from 4 sales in September.  In October 2023 the price of the 1 sale was $1,800,000.  The 1 sale in Summerland in October 2023 was a House on Whitney Avenue @ $1,800,000.

In Montecito, there were a total of 14 residential sales in October 2023, down from 17 in September.  In October 2023 the median price of the 12 House/PUD sales was $7,000,415 and the average price was $7,885,852.  In October 2023 the median and average price of the 2 Condominium sales was $3,442,500.  The lowest-priced Montecito sale in October 2023 was a House on Barker Pass Road @ $2,250,000 and the highest was an Estate on Freehaven Drive @ $20,350,000.

In Santa Barbara, there were a total of 43 residential sales in October 2023, down from 45 in September.  In October 2023 the median price of the 35 House/PUD sales was $1,929,000 and the average price was $2,170,000.  In October 2023 the median price of the 8 Condominium sales was $902,500 and the average price was $991,625.  The lowest-priced Santa Barbara sale in October 2023 was a Condominium on Richland Drive @ $600,000 and the highest was a PUD on Lighthouse Way @ $3,700,000.

In Hope Ranch, there were a total of 2 sales in October 2023, equal to 2 in September.  In October 2023 the median and average price of the 2 sales was $6,535,500.  There are no Condominiums in Hope Ranch.  The lowest-priced Hope Ranch sale in October 2023 was a House on Las Palmas Drive @ $4,960,000 and the highest was an Estate on Cresta Avenue @ $8,111,000.

In Goleta, there were a total of 21 residential sales in October 2023, up from 17 in September.  In October 2023 the median price of the 16 House/PUD sales was $1,497,500 and the average price was $2,235,781.  In October 2023 the median price of the 5 Condominium sales was $705,000 and the average price was $832,714.  The lowest-priced Goleta sale in October 2023 was a Condominium on Overpass Road @ $650,000 and the highest was an Estate/Ranch on Franklin Ranch Road @ $8,000,000.

Analysis

The real estate market on the Santa Barbara South Coast has been affected by various factors.  Many Sellers who were previously hesitant to list their homes due to the pandemic, listed and sold their properties in 2022, but the inventory of 2023 listings for sale still remains relatively low.  Historically low mortgage interest rates have risen dramatically since earlier in 2022 and as of November 1st they lingered just below 8%.  Another reason for our low inventory levels is that homeowners with mortgage interest rates of 3% or 4% are reluctant to sell and buy another home at a much higher rate.

 As of November 1st, there were 153 (down from 168 in October) active House/PUD listings and 33 (up from 31 in October) active Condominium listings available along the Santa Barbara South Coast.  This is a significant reduction compared 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 Santa Barbara South Coast was recorded in June of 1992 when there were an astonishing 1,297 active listings available for Buyers to choose from.

Bank-owned sales on Santa Barbara’s South Coast have been very rare; in all of 2021 and 2022, there were only 4 bank-owned sales.  There have been no bank-owned sales in 2023.  Currently the one bank-owned listing that was available expired after 436 days on the market; an oceanfront estate on Marina Drive in Hope Ranch listed for $21,500,000 (this may rate as the highest value bank-owned residential property in all of California).   Mortgage payment delinquency rates fell to 3.37% at the end of the second quarter of 2023, according to the Mortgage Bankers Association’s National Delinquency Survey, their lowest since the MBA began collecting data in 1979 and down from 3.64% year-on-year.  Rising home equity has allowed most owners to “bail out” of their financially distressed properties, pay off the mortgage, and avoid foreclosure.  There have been a few short sales and bankruptcy sales where an owner’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 .

On November 1st, Federal Reserve (The Fed) Chair Jerome Powell said that while he has always believed that a so-called soft landing was a “plausible outcome” for the economy, it isn’t guaranteed and that he wasn’t willing to give up on bringing down inflation to achieve it.  The Fed left interest rates unchanged at the moment, but economic projections showed one more quarter-point rate hike is possible this year.  Higher inflation is waning, but soaring energy costs could muck up a recovery.

  Mortgage interest rates have more than doubled since the beginning of 2022.  As of November 1st, you could lock in a $726,200 30-year fixed-rate loan at 7.750% with a 1% loan fee (up from 7.375% in September).  Historically the lowest 30-year mortgage interest rate since 1970 was recorded in February 2021 at 2.65% and that rate was matched yet again in July 2021 during the pandemic.  The highest historical 30-year fixed-rate interest rate was recorded in 1981 @ 18.63%.  The average 30-year fixed-rate mortgage interest rate over the last 50 years has been 7.74%, so interest rates are now matching that average.  The 23-year high in mortgage rates follows all-time lows reached just three years ago and highlights the effect that financing costs have on the housing market, a particularly rate sensitive sector of the economy. As a comparison, a mortgage payment for a $726,200 mortgage in 1981 would have been $11,318/month, the payment in July 2021 would have been $2,926/month, and as of November 1st, that payment would be $5,203/month.  Many potential buyers have switched to applying for adjustable-rate loans in anticipation of fixed-rate mortgages moving lower in the future.  At the same time, many  homeowners are waiting, unwilling to list their homes and trade their sub-3% mortgages to borrow at 7.9% for a replacement home.  This mortgage rate factor is one of the reasons there is limited listing inventory and therefore limiting 2023 home sales as compared to 2022.

According to Business Insider, cash buyers represented 33.4% of the national sale transactions, far above average levels of around 25% during the last 10 years.  In highly sought out areas cash Buyers represent a much higher percentage of sales; 69% in the City of Carmel, 65% in Manhattan (New York), 57% in Pebble Beach, and 54% in Pacific Grove.  On the Santa Barbara South Coast in October 2023, 39% of the sales were cash sales, down from 47% in September.   

Of the 90 residential sales in October 2023, 76 were over $1,000,000 which equates to 84.4% of the total sales, down from 86.7% in September.  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 2023 report, California had 6 (down from 7 in 2022) of the 10 most expensive median-priced ZIP codes in the country.  Montecito’s 93108 ZIP code came in at #4 (up from #8 in 2022) of the most expensive ZIP codes in the USA, even beating out Beverly Hills.  Check out the full report: https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us 

U.S.News compiled surveys on the 24 most expensive places to live in the United States during the last year.  Their surveys were based on the median gross rent and annual housing costs for mortgage-paying homeowners of each city.  California had 12 of the 24 (50%!) cities that require the most wealth to live comfortably: Santa Barbara came in at #5.  To see the entire article, check out https://realestate.usnews.com/places/rankings/most-expensive-places-to-live

WalletHub assessed the states where people experience the most stress based on Work-related, Money-related, Family, and Health and safety-related stress……the top 7 most stressful states are West Virginia, Louisiana, Tennessee, Arkansas, Kentucky, Alabama, and Mississippi.  The least stressful states are Utah, Hawaii, Maryland, Minnesota, New Jersey, Connecticut and California!  To review this interesting article, check out https://wallethub.com/edu/happiest-states/6959

The NAHB/Wells Fargo Housing Market Index in the United States fell by 4 points to 40 in October 2023, falling short of the market consensus of 44. It was the third consecutive month of decreases, bringing the index to its lowest level since January, as high mortgage rates have been heavily impacting builder confidence and consumer demand. Specifically, the sub-index for current single-family home sales decreased by 4 points to 46, while the sub-index for expected home sales over the next six months also saw a significant 5-point drop, landing at 44.  Additionally, the gauge for prospective buyers dipped by 4 points to 26.  To review the whole article check out https://tradingeconomics.com/united-states/nahb-housing-market-index

The Conference Board Consumer Confidence Index declined moderately in October to 102.6 (1985=100), down from an upwardly revised 104.3 in September.  “Consumer confidence fell again in October 2023, marking three consecutive months of decline,” said Dana Peterson, Chief Economist at The Conference Board.  “October’s retreat reflected pullbacks in both the Present Situation and Expectations Index. Write-in responses showed that consumers  continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.”  To review the entire article check out https://www.conference-board.org/topics/consumer-confidence .

As for the worldwide cost of living as of  November 2023, Expatistan compiled an index of 200 major metropolitan areas.  Gas prices were checked on November 1st.  In the USA, the most expensive area to live in is #2 New York City with @ 226 Price Index score (the least expensive gallon of regular gas costs $3.53/gallon) and the least expensive is #132 Cedar Rapids, Iowa @ 88 ($2.98/gallon).  Expatistan’s list indicates that #5 San Francisco @ 201 is the most expensive area in California ($4.83/gallon) and the least expensive is #38 Walnut Creek @ 141 ($4.89/gallon).  Searching the entire state of California, the least expensive gallon of gas can be bought in Madera County for $4.38/gallon.  Of the top 25 most expensive areas worldwide, three are in California (down from four in October), #5 San Francisco, #11 Los Angeles @ 186 ($4.65/gallon), and #13 Oakland @ 183 ($4.98/gallon).  The most expensive area to live in the world is #1 Grand Cayman @ 217 ($6.19/gallon) and the least expensive is #200 Yogyakarta (Indonesia) @ 37 ($2.48/gallon).  Santa Barbara is not on the list as Expatistan does not rate it as a major metropolitan area.  Local gas prices as low as $5.09/gallon are similar to other California coastal areas.  Expatistan’s Cost of Living Index is an interesting way to compare the cost of living in cities around the world:  https://www.expatistan.com/cost-of-living/index 

According to Realtor.com®’s October housing data dated November 2nd, the inventory of homes for sale continued to grow late into the year when it would typically decline as mortgage rates passed 20-year highs and continued to provide headwinds to both listing and home buying activity. The nation’s median home list price remained stable at last year’s levels but the share of price reductions continues to grow. While lower than last year, the share of price reductions rising could signal a softness in prices in the coming months.    Check out the full article at  https://www.realtor.com/research/october-2023-data/ 

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 October 2023 the median sales price for all residential sales was $1,715,000.  The median sales price had been hovering near 2007’s historic high for most of 2017, 2018, and 2019, then started an upward climb in 2020, accelerating in 2021 and into most of 2022.  In early 2022 record-high median sales prices were set each month and now in 2023, they have leveled off or declined slightly.  The average sale price of all residential sales in October was $2,653,265 which is up from $2,275,881 in 2022.

Based on the Santa Barbara Multiple Listing Service data, as of November 1st in the City of Santa Barbara, there were 64 active House/PUD listings (down from 77 in October) and 29 pending sales (up from 25 in October), which equates to a 2.2-month supply (down from 3.1 in October) 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 5-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 November 1st, Carpinteria/Summerland had a 16-month supply (dramatically up from 2.2 in October), Montecito had a 8.4-month supply (up from 4.8 in October), Goleta had a 1.5-month supply (up from 1.4 in October) and Hope Ranch had a 12-month supply (up from 5.5 in October).  These inventory statistics indicate that Goleta remains in a heated Seller’s market.  Carpinteria/Summerland, Montecito and Hope Ranch have all moved into a Buyer’s market.  The City of Santa Barbara remains in a basic Seller’s market.  With a combined total of 47 House/PUD pending sales (down from 51 in October) and 153 active listings (down from 168 in October) along the South Coast of Santa Barbara County, there is a 3.3-month supply (same as it was in October) of House/PUD listings from which Buyers can choose.  With a combined total of 23 Condominium pending sales (down from 53 in October) and only 33 active listings (up from 31 in October) on the South Coast of Santa Barbara County, there is a 1.4 -month supply (up from .58 in October) of Condominium listings from which Buyers can choose.  These statistics show that the Sellers of Condominiums are in firm control of sale prices, especially in Goleta.  The total South Coast of Santa Barbara County market remains in a state of transition and appears to be moving towards a Buyer’s market due to numerous factors.  While today’s Buyers are running into fewer multiple-offer situations, they will still pay a premium for a home with great amenities.  In many Buyer’s minds, the sense of urgency to purchase a home has tapered off a bit with more inventory to choose from and listings to pursue.  People still want to live along the Santa Barbara South Coast to enjoy the Mediterranean weather and our casual lifestyle.

While concerns about the pandemic’s economic impact have diminished, there are several other concerns for many Buyers and Sellers. These include the wars in Ukraine and the Middle East, inflation, the cost of gasoline, rising premiums, rising mortgage rates, and the possibility of a recession.  Now a major concern is the scarcity of homeowners’ insurance coverage, especially since State Farm and Allstate have recently refused to issue new insurance policies to California home buyers.  California’s Proposition 19, which has now taken full effect, allows homeowners aged 55+ to transfer their existing real estate tax base to a home anywhere in the State; this change should be encouraging to some older Sellers who wish to sell their current homes and find a suitable replacement. Due to low inventory and increased migration trends towards smaller cities during the pandemic, a trend which continues to this day, there has been a surge in property values on the Santa Barbara South Coast.  While market corrections may still negatively impact property values on the Santa Barbara South Coast, the impact is expected to be less severe compared to many other areas in the state and country.  New listings in 2023 may remain on the market a bit longer than in 2022, but each week I am still seeing multiple offers on certain well-priced listings.  Home values in the Santa Barbara South Coast Real Estate Market continue to be positively affected by supply and demand dynamics due to persistent low listing inventory; I expect this dynamic to continue into the foreseeable future.

Review the attached list of the 90 properties sold on the Santa Barbara South Coast in October 2023 and feel free to contact me for information on specific sales in our area.

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]