Santa Barbara Real Estate Summary: First Half of 2016

Santa Barbara Real Estate Summary: First Half of 2016

Santa Barbara Courthouse (Credit: Glenn Beltz, Flickr)

Santa Barbara Courthouse (Credit: Glenn Beltz, Flickr)

Now that we are into the second half of 2016, let's look back on what happened in our local real estate market in the first half of 2016.  This post will look exclusively at stand alone homes (PUDs excluded), while a future post will look at condos.

Below are a series of four graphs.  The first three look at median, high, and low sale prices respectively for each geographical area.  The fourth and final one looks at the quantity of sales.

Let's see what we can learn!

For starters, let's look at median sale prices.  Hope Ranch and Montecito are virtually tied for most expensive.  The Eastside of Santa Barbara trumps the Westside of Santa Barbara, while Carpinteria/Summerland and Goleta round out the field.  

Same old story here: major price premiums to live in Montecito and Hope Ranch.  Exclusivity and cache reign supreme!  

Santa Barbara Real Estate - First Half of 2016

Up next are the high sale prices.  This chart should be titled "Outliers", because the second-highest sales in many of these areas are significantly less expensive than the leaders.  For example: the second place home in Montecito came in at $16,000,000, a staggering 45% less than the most expensive property (Seamair Farm, which was bought by Oprah!).  Only in Montecito...

The second place finisher in Westside Santa Barbara was 32% less than the leader in that area.  Why would the Westside be this expensive?  Well, that $5,200,000 home was immediately next to Hope Ranch, so it shared many of the same locational benefits despite not actually being in Hope Ranch proper.

The high sale in Carpinteria/Summerland was, to no surprise, located on Padaro Lane.  We've covered it before (here), but to recap: the homes on this stretch of secluded coastline are some of the most sought-after coastal homes anywhere (Malibu included).  Many a celebrity has called this prestigious street home, and when you walk out the backdoor of one of these houses onto the private beaches behind them, you'll understand why.

Of all the outliers though, Goleta South takes the cake.  The second place finisher there was a whopping 63% less than the highest sale!  That winner, by the way, was perched on a cliff overlooking the ocean in the  desireable More Mesa neighborhood.

Santa Barbara Real Estate - First Half of 2016

The next chart, which shows the lowest sale prices in each area, is a window into the wacky world of Hope Ranch.  The number of transactions there is always very low, so the entry prices are correspondingly high.  The chance to buy in Hope Ranch for less than $2,000,000 is rare, even for a house that needs work.

Interestingly enough, the remaining areas are all similar in terms of entry-level prices.  Of course, what you get for those prices varies drastically.  In Montecito that might mean a tear-down on a very small lot.  In Goleta, it may mean a house on a normal sized lot that is a remodel away from being the gem of the neighborhood.

Santa Barbara Real Estate - First Half of 2016

Finally, we look at quantity of homes sold in each neighborhood.  When you combine Eastside and Westside Santa Barbara, you account for nearly half of all sales.  Not necessarily a surprise, since Santa Barbara has the vast majority of inventory locally, but interesting to see nonetheless.  You can also see the sliver of transactions in Hope Ranch, like I talked about above.  

The big number for me here is Montecito with 100 transactions.  I think this transaction-heavy first half of 2016 led to a lot of homeowners deciding to list their properties...which has in turn created the current buyer's market in that upper-end area.

Santa Barbara Real Estate - First Half of 2016

Quantity of Homes Sold

What are your reflections for the first half of 2016?  Did you buy or sell a home?  Did you find the marketplace to be competitive or soft?  How do you project the second half of 2016?  Let me know in the comments below, and stay tuned for the condominium market breakdown!

Santa Barbara Real Estate Summary: First Half of 2016 (Condo Edition)

Santa Barbara Real Estate Summary: First Half of 2016 (Condo Edition)

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