Santa Barbara Real Estate – 2016 Year in Review

The Data

As we talk to people daily, there are two questions we are regularly asked: How is the real estate market doing? And which way is it headed?

Working inside the business of real estate, it is easy to answer the question of how the market is doing today. Always the tougher question to answer is, where will it be in the future? We can guesstimate based on current facts, trends, sentiments, and conditions, but only in hindsight will we have 20/20 on 2017.

Most notable for 2016 is how stable the market remained:
• Prices remained relatively stable – Median Sales Price was up about 4.5% depending on whose numbers you use.
• Total housing unit sales, although down from 2015, were equal to 2014. Looking back over the past 17 years, 2016 unit sales volume was an average year – right in the middle.
• The high-end – sales over $5,000,000 up to $10,000,000 – was almost identical to 2015.

Changes we did experience in 2016:
• 30 Year Fixed Rate Mortgage interest rates, although still historically very low, are no longer available in the 3% range. After they pushed-up and over 4.5% in November/December, they have currently settled back down in the low 4% range.
• Condo sales were down 24% in 2016 compared to 2015. Much of that was due to new construction and sales of the Hideaway in Goleta selling in 2015 – Hideaway had 63 new Sales in 2015 and only 2 new Sales in 2016.
• The ultra high-end (sales over $10M) was down significantly, down 69%. Only 5 sales in 2016 compared to 16 sales in 2015.
Our belief for 2017 is that the market will continue to be relatively stable with perhaps the Buyer having a slight edge.

Properties priced “correctly” continue to garner multiple offers and sell very quickly. Properties over priced sit and tend to need several price adjustments to finally sell.

The high-end and ultra high-end will be an interesting study in 2017 – they tend to be on the market longer, and throughout 2016 the selling price seemed to almost always be lower than the listed price, sometimes dramatically lower.

We are looking forward to taking care of people and their housing needs in 2017. If you or someone you know has a real estate need, we can and would love to help.

December ’16 Highest Sale
3246 Beach Club Rd
4 BD / 4 BA / $7.505.000

December ’16 Lowest Sale
819 N Alisos St
2 BD / 1 BA / $650.000

Thank you to our clients on these most recent sales!  Thank you for your trust. It is always an honor to serve.

18 W Victoria Street 204
Alma Del Pueblo
1 BD / 2 BA / $1.250.000

626 Alston Road
Montecito View Acre
1.1 AC / OCEAN / $1.362.600

2527 Golden Gate Avenue
Summerland Ocean View
3 BD / 2 BA / $950.000

66 Brandon Drive
El Encanto Heights
3 BD / 2 BA / $790.000

SOMETHING FUN!
In the Schlobohm Home on January 9th our forth child, Olive, arrived! Newborns are so small; it is amazing how delicate we are when we are born.

Holding a little one in your arms can sure give you perspective about life and what matters. I am reminded again that PEOPLE MATTER, and I am very grateful for so many close friendships.

And to all who have made it this far through our market update. We would love to buy you a (free) cup of coffee at our favorite coffee bar, Handlebar – no strings attached. We can talk about whatever you like – it certainly does not have to be about real estate. Give us a call!