How's the Montecito Real Estate Market?

The real estate market across the nation has seen significant changes over the past few years, and Montecito and Santa Barbara are no exceptions. Nationally, the median price per square foot has surged by an impressive 52.7 percent since 2019, according to Realtor.com. This broad trend sets the stage for understanding the dynamics in our local markets.

In Montecito, the past six months have showcased some interesting numbers. The highest price per square foot reached a staggering $6,232. To put this into perspective, 53 out of the 76 sales (69.7%) since the beginning of the year have sold for prices over $1,200 per square foot. Even more striking, 24 of these sales (31%) were at prices exceeding $2,000 per square foot. Only a single sale dipped below the $1,000 per square foot mark.

Comparing these figures to the same period in 2019 highlights the extraordinary growth in the market. Four years ago, only 19 out of 80 sales (23.75%) in Montecito were over $1,000 per square foot. Sales exceeding $2,000 per square foot were even rarer, with only 7 transactions (8.75%) crossing this threshold.

This surge in home values has had a ripple effect on the market, encouraging more sellers to enter the fray. Nationally, over the past seven months, we've seen a 32.5 percent increase in the number of homes for sale year over year. This influx of inventory is a direct response to the rising home values, as sellers seek to capitalize on the favorable market conditions.

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