Do you recall the timeless line, “Mirror, Mirror on the wall, who’s the fairest of them all?” from the classic fairy tale? Well, today, we’re asking a real estate twist on that question: Which neighborhood has seen the most remarkable median price increase from pre-COVID 2019 to the post-pandemic era of 2023?
South Coast real estate has witnessed substantial growth over these four years. Median prices in the region have surged by a remarkable 61 percent, with the South Coast condo market following suit with a substantial 40 percent increase.
Now, let’s reveal the front- runners in this real estate transformation:
1. Hope Ranch: Leading the pack with an astonishing 107 percent increase.
2. Montecito: Not far behind, with prices soaring by 81 percent.
3. The Mesa: Seeing a com- mendable 71 percent increase.
4. West and East Sides of Santa Barbara: Both experienced robust growth, with 68 percent and 65 percent respective increases.
Interestingly, the neighbor- hoods that began with higher price tags seem to have reaped the most significant rewards. Hope Ranch’s exceptional performance, in particular, may be attributed to its proximity to the ocean, potentially rendering it more resilient in a changing climate.
But what about the current market trends? Where is the South Coast real estate market heading?
The number of home sales has seen a notable decline, around 50 percent for both houses and condos, since the peak in 2021. While this might raise concerns, it’s essential to understand that we experienced a huge surge in sales, followed by a natural lull. The overall buying and selling behavior has remained consistent with pre-COVID times.
Price-wise, we’ve observed a modest decrease of less than 5 percent since the peak in 2021. However, it’s important to note that the 5 percent decline is not entirely straightforward. The market saw some exuberant overbid- ding two years ago, necessitating a correction.
One intriguing phenomenon is that as the number of sales has decreased, so has the number of homes hitting the market. This balance between supply and demand has prevented significant price declines.
While some prices may have eased slightly from their peak due to reduced competition, there’s still ample opportunity to secure favorable deals on your dream home. The limited availability of homes for sale means that options are limited for prospective buyers. If you’re considering putting your home on the market, 2023 or 2024 still promises to be an excellent time to sell. Feel free to reach out for a confidential consultation. Let’s find out your fairy tale ending.
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