Santa Barbara, the idyllic yet pricey coastal Californian metro, has been declared the top housing market in America according to the Wall Street Journal and Realtor.com’s Winter 2024 Emerging Housing Markets Index.
Expensive yet Desirable
With the typical home price listed at nearly $1.8 million, Santa Maria-Santa Barbara has surpassed other cities to claim the number one spot on the index. This ranking is determined by factors such as housing market data, economic vitality, and lifestyle metrics. It identifies emerging housing markets that not only offer a high quality of life but also show potential for future home price appreciation.
The Runners-Up
Following Santa Barbara, Jefferson City, Missouri and Canton-Massillon, Ohio were recognized as the second and third top housing markets in America respectively.
Well Above the Average
With the median listing price of $1,795,000 in Santa Barbara, the typical home in America, priced around $383,000 as of December 2023, pales in comparison. While this price tag may be out of reach for many prospective buyers, it hasn’t dampened the city’s hot market status.
Desirable Market Conditions
In Santa Barbara, homes spent an average of 52 days on the market in December, which is 9 days shorter than the national average. Additionally, the number of homes available for sale in the city grew by almost 14% in that month alone.
Drawing Attention from Afar
Interestingly, approximately 80% of online views for city listings came from outside the metro area during the fourth quarter. The report highlights significant interest from Los Angeles, followed by San Jose and San Francisco. Moreover, 3.3% of Santa Barbara’s listing viewership originated from international shoppers, indicating that high prices are subject to pressure from international demand.
The Price of Luxury
To purchase a $1.8 million home in Santa Barbara with a 20% down payment (equivalent to $360,000), a home buyer would need to earn at least $425,000 annually and opt for a 30-year mortgage at a rate of 6.9%. According to Freddie Mac’s home-buying budget calculator, such a purchase would require a jumbo rate loan in Santa Barbara County, resulting in higher interest rates compared to conventional mortgages. Ultimately, acquiring a typical home in this metro would entail a monthly payment of $9,800 or more.
(Realtor.com is operated by News Corp subsidiary Move Inc., and is a unit of Dow Jones, which is also a subsidiary of News Corp.)
