Santa Barbara

Market Update and Early Predictions for 2023

November 16, 2022 Posted by Mark Danforth Lomas Market Conditions, Santa Barbara Real Estate, Santa Barbara Real Estate Market Trends, Santa Barbara Real Estate Statistics

Recent months have seen the median sale price in Santa Barbara Real Estate dip from a record high this spring. The price paid per square foot is up 9% on the year. Looking ahead to next year, we expect an uptick in inventory and a more balanced Santa Barbara real estate market with more options for buyers and sellers.

The CALIFORNIA ASSOCIATION OF REALTORS reported on November 14, 2022, that despite welcome news to the Fed that consumer prices eased more than expected in October, inflation remains a threat to the economy as it continues to erode Americans’ purchasing power. Housing affordability in Q322, for example, dipped again from last year, despite inching up slightly from Q222. Meanwhile, the average 30-year fixed-rate mortgage (FRM) jumped back over 7%, depressing refinance activity to a 22-year low. Purchase applications, on the other hand, made a modest improvement for the first time in six weeks, but still remained well below the level observed at the same time last year. With mortgage rates hovering near the 20-year high, consumers’ confidence in the housing market dipped further in October as affordability remains the top challenge for homebuyers.

Home sales for Santa Barbara, California from January 2013 to October 2022 when 98 homes sold.