Q3 - Montecito Market Update
Transition and uncertainty are on everyone’s minds as we enter the 4th Quarter. The luxury residential market has experienced some deceleration, although if recent history is any guide, the Montecito market will continue to attract buyers no matter what is happening in the world of finance, politics or the environment.
There is a wave of exciting commercial developments that are shaping Montecito’s future. Some of the most visible community projects include the Rosewood Miramar expansion, the Restoration Hardware restaurant in the Upper Village, and a revamp of the bird refuge below the Lower Village. These ventures promise to inject vitality and versatility into our charming town and love it or hate it, progress and expansion are coming.
As these projects and others come to fruition, Montecito will continue to cement itself as a world class community and destination which will play out in a positive way for our housing market. Stay tuned for more updates on these and other exciting developments!
Now for the stats.
There were 42 closed sales in the third quarter of 2023, this is just 2% below 2022 which had 43 sales in the Q3. The big news is that the Average Sales Price which was $5,894,769, was down by 25% compared to Q3 2022. The highest sale we saw was 1741 Glen Oaks Drive for $18.5M, which sold for 93% of its last list price and was on the market for 40 days. One of the sales that stood out was 487 Monarch Lane – this charming 3 bedroom Ennisbrook Casita sold in 10 days for $700,000 over asking price, reminding us that demand continues to outstrip supply for certain segments of the market.
The Montecito market is driven by demographics far more than by what is happening in the larger economy. Although we are in a period of transition today, the Montecito lifestyle continues to be in high demand among baby boomers with money to spend and the main obstacle to sales is a lack of homes that meet the lifestyles of today’s buyers.