Santa Barbara Real Estate Market Update February 2018
Looking at February 2018, we see increased sales numbers and a rebound from our low January numbers (much of this due to the Thomas Fire and Montecito Mudslides). There has been a push in sales in areas not impacted by fire or mudslides - many of these sales are from buyers displaced by our local disasters. Our low inventory numbers continue to drive this buyer's market, with many neighborhoods not impacted by our local disasters seeing 1 to 3 months supply of inventory. A less than 5 or 6 month supply of inventory is generally considered a seller's market, and over 6 month supply, a buyer's market. Montecito currently is seeing an 8-9 month supply of inventory, which is not surprising due to the current events.
Also to note is our median sales price is hovering around that $1,000,000 mark (for single family homes, condos, and PUD's) - one of the highest the Santa Barbara South Coast has seen.
The Fed announced today it's 6th interest rate increase since the financial crisis, and is on track for 2 more interest rate hikes this year. The announcement underscores the Fed's confidence in the economy and concern for inflation. We will see how these rate increases and the new 2018 tax laws will impact our local housing market going forward.