2022 Mid-Year Review
The first half of 2022 was astounding, and I’d say, unsustainable. Inventory was at an all time low, and the Average and Median sale prices were up double digits Year-to-Date compared to the first half of 2021 with single family residences enjoying the greatest gains at 21% and 25% respectively.
With three interest rate hikes this year, activity has finally started to slow as evidenced by growing inventory, longer days on market and more price reductions. While inventory today is double what it was in both the single family and condo categories, it remains a seller’s market. Montecito, on the other hand, is now hovering at 5 months of inventory, one month short of a balanced market. The least expensive home in Montecito is listed for $2,195,000, and there’s nothing else available to choose from until you hit $3,450,000 …so there’s a real gap in the market between $2-3M in Montecito.
While the pace at which prices were skyrocketing benefited those who were moving out of the area, local buyers have been out priced, their dreams of homeownership dashed. Stressful doesn’t even come close to describing what our local buyers have been going through. Whether it’s the local family who has outgrown their home and needs to move up or the retired couple who are now empty nesting in a home too large for them, it is my hope that the growing inventory will start to soften prices, giving hope to our neighbors who want and need to make a change.
