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.
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 California real estate market has shown signs of recovery in May, with home sales reaching the highest level in eight months and the median home price surpassing $800,000 for the second consecutive month. The market is demonstrating resilience and stability.
The Santa Barbara real estate market remains strong while interest rates hovers around 7%. On July 16, 2023, the current average interest rate for a 30-year mortgage was 7.14%. Source: Bankrate
All Cash purchases have picked up since last year here in Santa Barbara. All Cash sales for June of 2022 were 28%. This year for June was 40%, which may reflect the dramatic hike in interest rates this year.
Click Read More below for graphs, charts, and video.
If the supply of housing is constrained and unable to keep pace with rising demand, prices tend to increase. This scarcity can create a sense of urgency among potential buyers, who may be willing to pay higher prices to secure a property before it becomes even more expensive. This increased demand due to limited supply can further drive up prices.
Click Read More below for Santa Barbara real estate Market Trends, recent Sales data, and Videos.
Historically, the California real estate market has been known for its high prices and strong demand, driven in part by the state’s strong job market and desirable location. In recent years, the market has continued to be competitive, with low inventory and high demand leading to bidding wars and rapid price appreciation.
Overall, the California real estate market remains a dynamic and competitive environment, with strong demand, high prices, and tight inventory continuing to be major factors.
Click “Read More” below for graphs, charts, and video.
Overall, homes in California are slightly less expensive than they were one year ago — but only very slightly. According to data from the California Association of Realtors (CAR), the median single family home sold for $777,500 in November 2022, compared to $782,480 in November 2021. Today’s significantly higher interest rates make that already-high price feel even less affordable.
This does not hold true across all areas of the state. For example, Fresno, Los Angeles and Orange County saw equally slight increases year-over-year, while the wine-country regions of Napa and Sonoma saw more significant increases.
Homes are also taking longer to sell, CAR reports. In October 2021, homes spent an average of 11 days on the market before selling. A year later, that number had more than doubled to 23 days on the market.
Click “Read More” below for Market Trends Statistics for Santa Barbara and artist information.
It’s important to keep up with real estate trends if you’re looking to buy or sell. January’s housing market is likely to mimic December’s, which is good for sellers but not great for buyers. This post features Santa Barbara’s real estate market trends for December 2022, year-to-date statistics for the year, plus market trends for the last decade.
Home buying demand skyrocketed during the pandemic as interest rates collapsed and an influx of Americans started working from home. However, the Fed’s rate hikes have quickly spurred a reversal.
