Q1 2023 Review
Let’s take a look at Q1 2023 to get a sense of what’s happening in today’s market. The average and median sales prices for single-family homes in all areas, excluding Montecito and Hope Ranch, were down 16.6% and 8.6% respectively from Q4 of 2022. In comparison to Q1 2022, the average sale price, $2,370,000, was roughly at par, and the median sales price, $1,630,000, was down 13.1%. Sales were down 19.4% in comparison to the last quarter of last year and down 36.5% in comparison to Q1 of 2022. Days on Market is averaging 22 days, down 33.3% in comparison to Q4 2022 and up 30% from Q1 2022, meaning homes are selling faster in 2023 in comparison to the last quarter of 2022 but slightly slower than in Q1 2022. The Months of Inventory for this category of homes is 2 months and 7 days, up slightly from 1 month and 19 days on March 20, 2023.
With new listings in Montecito up 87% compared to Q4 of 2022, sales rose by 20%. The average and median sale prices in Q1 of 2023 were up 4.1% and down 4% in comparison to Q4 of 2022. And in comparison to Q1 of 2022, the average sale price was down 7.6% while the median sale price was down 10%. Days on market for Q1 2023 dropped considerably to 41 days which is a 56% decline from Q4 2022 when it took 93 days on average for a home to sell. The Months of Inventory in Montecito is currently at 2 months and 27 days down from 5 months and 12 days on March 20, 2023.
The condominium market was off slightly compared to Q4 of 2022 with the average and median sale prices down 4.6% and 4.1% respectively. The median sale price, however, was up 10% in comparison to Q1 2022. New listings were roughly at par with Q4 2022 but were considerably down in comparison to Q1 2022 by 41.5%. Sales were down 7.7% compared to Q4 2022 and down 42.3% compared to Q1 2022. Days on market were down 80% compared to Q4 2022 and down 150% compared to Q1 2022. Months of Inventory while up a hair remains dramatically low at 1 month and 11 days in comparison to only 21 days on March 20, 2023.
While the year got off to a slow start because of the heavy rains, multiple offers are now back in full swing, and we are seeing some homes selling for record-breaking prices. If you are thinking of buying in today’s market, it’s all about proper and comprehensive planning and preparing. I remain optimistic that with the right strategy in place, and a belief that it can happen, all things are possible. Feel free to call me to discuss the right path forward for you.
