February 2021 Market Update
The market continues to climb as we move into February 2021! With inventory still declining and buyer need on the rise, prices have spiked and it’s not uncommon for homes to sell 10% over asking with multiple offers. For our MLS as a whole, January's median sales price for single family was $1,749,000, a $199,000 increase over the previous month. January’s average sale price was $2,846,152 and the average days on market was only 47. Mortgage rates remain at very low but are starting to increase.
Predictions suggest that Santa Barbara’s average price point will continue to increase incrementally as inventory has not been able to satiate demand and is not expected to. With inventory down approximately 40% over last year and buyers coming from urban areas (mostly San Francisco and LA), we are seeing an increase in prices, cash sales, and also very limited contingencies (if any at all) for properties that are going under contract. Santa Barbara will continue to be a very hot market as buyers have the ability to work remotely and choose where they want to live.
Typically we see more units come on the market in the spring, and with the addition of Prop 19 taking effect in April, I am hopeful we will start to see more options for the multitude of buyers that are looking.