2020 closed with the election behind us, thank goodness, the vaccine rolling out and a growing sense of hope for 2021. Demand for residential real estate was vibrant across the country and locally due to low inventory levels. Transactions were completed safely using industry precautions and we offered virtual tours and videos for our listings.
Luxury buyers prioritized convenience and comfort in the form of large yards, pools, home office, gourmet kitchens and move-in ready. Millennials made up a larger share of the market. Secondary cities such as Montecito saw booms as many continue to work virtually. Buyers relocated here from vertical cities such as New York City and San Francisco. All took advantage of interest rates that were 50 basis points lower that the prior year, translating into a $125,000+ increase in purchasing power. Sellers with substantial equity prioritized closing by Dec 31st to minimize the risk of capital gain tax increases. Our title rep said December was the busiest month he had ever seen in his 35 years at the LA County recorders office! 2021 begins with plenty of buyers and low inventory which is expected to be the main challenge for the market.
Homes Over $3MM
- 22 sales vs 15 in Q4 ‘19
- Average sale price was $5,313,734, flat
- Average price per sq ft $995, +10%
- Days on market averaged 39 days from 64 days in Q4 ‘19
- Highest sale in Q4 was 100 Fremont over $11MM
Homes Under $3MM
- 32 sales vs 45 in Q4 ‘19
- Average price was $2,138,447, +30.9%
- Average price per sq ft $765, +2.4%
- Days on market averaged 39 days from 60 days in Q4 ‘19
- Lowest sale was $1.5MM and the Median price was $2MM