The southern Santa Barbara real estate market remains vibrant with increased sales activity even as mortgage rates rise. Despite the increase of inventory compared to last year it still doesn’t meet the current demand. The market may be in transition if the inventory continues to increase and the supply is gradually aligning with the demand.
Click Read More below for more information and sales statistics for March 2024.
Despite a recent uptick in mortgage rates, the California’s housing market continued to demonstrate resilience in February, reaching sales levels not seen since September 2022, according to the California Association of Realtors on March 19, 2024.
February’s sales pace jumped 12.8 percent higher from the revised 257,040 homes sold in January and rose 1.3 percent from a year ago, when a revised 286,290 homes were sold on an annualized basis. The monthly sales increase was the second straight month of double-digit gains for California. It was also the second consecutive month of year-over-year gains, but the improvement was mild. The sales pace remained below the 300,000 threshold for the 17th consecutive month. While it is likely that sales will stay below this level in the first quarter of 2024, statewide home sales on a year-to-date basis remained positive with an increase of 3.4 percent, suggesting a better spring home buying season than that experienced last year.
Click Read More below for the whole post, Santa Barbara real estate statistics, and video.
Good news! The Wall Street Journal reported that slowing inflation caused Federal Reserve Chair Jerome Powell to pivot away from raising interest rates and toward planning when rates might be lowered. The U.S. economic outlook has brightened in recent months because inflation and wage growth are slowing. Healed supply chain and an influx of workers to the labor force are curbing wage and price increases without causing broad economic weakness.
Plus! Barbara Corcoran’s takes on the real estate market. Spoiler Alert! When mortgage rates drop to around 6% prices will go up. If you’re waiting for prices to drop that may not be the best strategy. Check out the video and decide for yourself.
Click “Read More” below for the whole post and GMA video.
Santa Barbara has been described as the “American Riviera,” a “playground for the rich and famous” and, quite simply, “paradise.” Situated between the Pacific Ocean and the Santa Ynez Mountains, Santa Barbara, California, enjoys a nearly perfect year-round climate, making it ideal for outdoor activities and drawing tourists worldwide.
Click Read More below for inventory update and videos.
Surging mortgage rates and still-high home prices are not leaving already demoralized home shoppers much to be thankful for these days.
Nonetheless, the housing market remains competitive as demand continues to outpace supply. Would-be buyers with the stomach to stay in the market are gobbling up the limited inventory, especially new homes, as builders continue offering incentives to hopeful homeowners.
Click Read More below for more information and video from Altos Research.
Recently I spoke with the manager of one of the larger Real Estate Companies here in southern Santa Barbara and we both agreed that the market has changed. It appears that the seller’s market may have peaked six to nine months ago, and many sellers aren’t too happy.
At the beginning of the year, this market was still hot, and a lot of homes that had been priced properly initially were selling over their asking price. But things changed, and some sellers may have missed the market. Right now we’re seeing lots of “price reductions” or what many listing agents rephrase as a “price improvement.”
Interest rates are through the roof. On Saturday, October 14, 2023, the current average 30-year fixed mortgage interest rate was 7.89%, increasing 3 basis points compared to this time last week!
Buyers who are able to find the home that they’ve always dreamed of might consider an Adjustable Rate Mortgage set not to adjust for 3 or 5 years at a considerably lower interest rate than the current fixed rates being offered. If you’re not an “All Cash” buyer you should thoroughly investigate the various financing offerings that are currently available. There are more than a few. Also, there are some sellers who have assumable loans at a very low interest rate that they acquired during the Pandemic real estate market, and listing agents should definitely include that information at the front end of their marketing. It can be a game-changer.
Sorry to rain on anyone’s parade but the following data tells the story. Whatever side of the coin you are on, buyer or seller, good luck out there. If you’re thinking of buying or selling we can help.
Click Read More below for statistical data, video, and more information.
106 Homes sold in August 2023 down from 133 homes sold this time last year. Low inventory continues to drive sales. 40% of homes sold in southern Santa Barbara were “all cash.” Although the market has softened slightly here in September there’s a strong possibility that the market will pick up as we head into October and November.
Click Read More below for more statistics, graphs, charts, and video.
Buyers and sellers’ sentiments remained virtually unchanged in August 2023 as housing market participants waited for more signals on what the Fed’s next move will be.
With the economy looking stronger than what was anticipated six months ago, interest rates will remain elevated. As costs of borrowing continue to rise consumers might be tapped out. It’s possible that the economy will show signs of slowing later this year, and if that happens, the Central Bank will have no choice but to cut rates starting the first quarter of 2024. Mortgage rates might begin declining in the fourth quarter of this year and possibly improve next year.
The decline is expected, and if that occurs, will most likely be gradual.
Click Read More below for some very insightful videos into the current real estate housing market.
The Santa Barbara real estate market has enjoyed a historic run in home values over the course of a decade. As a result, real estate in Santa Barbara has become a luxury commodity. However, despite rapid appreciation, demand remains intact and should catalyze activity moving forward. It appears that today’s high prices aren’t enough to scare away buyers.
Click Read More below for sales statistics provided by Fidelity Title Company and a video about Market Trends nationally by Altos Research to give you a more defined overview of market conditions.
The graphs included in this post use recent monthly reports from three sources to show the worst home price declines are already behind us, and home prices are appreciating nationally.
Click Read More below for the rest of this post and video.