Santa Barbara is buzzing with excitement for one of my favorite events, the Santa Barbara International Film Festival. This event is a highlight in our city's calendar, showcasing exceptional talent and bringing together a community passionate about film. It's an opportunity to experience the magic of cinema and the vibrant energy it brings to our city. Join us in celebrating this and other wonderful events that make February in Santa Barbara truly special.
As we step into 2024, let's take a moment to reflect on the real estate trends from the last quarter of 2023: with 122 sales (including 11 off-market), Santa Barbara's market showed a slight decline in median and average sales prices, compared to Q4 of 2022. Significant inventory reduction and quicker property turnover indicate a high-demand market, likely due to low supply.
Montecito had 37 sales (with three off-market), and also demonstrated a decline in average sales price. This trend reflects a market balancing premium sales with broader economic influences.
The impact of higher mortgage rates was evident in 2023, leading to the lowest total annual home sales since 2012. Mortgage rates reached 23-year highs in October 2023 but started declining thereafter. This rate decline is attributed to expectations of Federal Reserve rate cuts and easing inflationary pressures. Inflation is expected to continue moderating, and mortgage rates are projected to ease throughout 2024, staying around the 6% range.
I'm setting aside a few hours each week to put together home equity reports for my clients. These reports are more comprehensive and accurate than what you'd get from an online tool. Can I send you one for your home? Let me know.
Make sure to also check out the Sotheby's 2024 Luxury Outlook report, linked below, which provides a comprehensive overview of industry trends within the global high-end residential markets and offers insights into what to anticipate in the upcoming year.
