Good News!
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.
Inventory Improving and Promising Signs…
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.
What You Should Know About Interest Rates
In 1971, the interest rate for a mortgage was 7.33%. If you waited for interest rates to go down, you wouldn’t have purchased a home until 1993. You would have rented for 22 years waiting for rates to go down, meanwhile the value of real estate quadrupled. Don’t wait to buy real estate. Buy real estate and wait. Marry the house, date the rate.
Click Read More below for more interest rate information and video.
OCTOBER HOME SALES & MARKET TRENDS
The Santa Barbara Real Estate market continued to reflect trends that have been with us all year: relatively few homes for sale, higher mortgage interest rates, and a gradual cooling from the very hot market we experienced during the height of the pandemic.
Median prices and numbers of sales often flatten or decline in late summer into January compared to spring and early summer months. The market seems to have moved into this pattern. At the same time, continued interest rate increases and other factors are putting pressure on prices, offset to a large degree by a low supply of available homes for sale (inventory).
For more information including Videos and Statistics click Read More below.
Housing Recession?
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.
Home Prices?
California home prices are holding steady as high interest rates test the housing market according to the California Association of Realtors.
Persistently high mortgage rates continue to test California’s housing market as home sales fell for the fourth consecutive month in September, while the median price rose from the year-ago level for the third straight month to record its largest year over year gain in more than a year.
The President of the California Association of Realtors Jennifer Branchini says, “With the market being less competitive, there are greater opportunities for consumers who need to purchase a home for personal reasons or those who can qualify to purchase at today’s interest rates. More sellers are making concessions as homes are taking longer to sell, fewer homes are selling above asking price, and there are more homes to choose from.
Click Read More below for more information and video.
Market Update
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.
ArchitecTour’s Design Showcase October 7, 2023
The American Institute of Architects, Santa Barbara is proud to announce its 14th annual ArchitecTours. This year’s tour features projects in various communities near downtown Santa Barbara. The projects include newly completed residences on the Mesa, as well as mid-century and cottage-style accessory dwelling units. In addition, tour-goers will also have the chance to visit multi-unit senior and veteran housing projects, Drift Hotel, and SB Biergarten. The spaces demonstrate the beauty of Santa Barbara’s signature indoor-outdoor lifestyle and the diversity of our local communities.
Click Read More below for more information for this weekend’s ArchitecTour!
Want a 3% Mortgage Rate?
Would you like a 3% Mortgage Rate? An Assumable Loan might be something to consider. Assumable loans are loans where the buyer takes over the interest rate that the seller currently has if the seller’s lender allows for that. This allows for more affordability and increased opportunities for sellers and is something listing agents should factor into their marketing.
Click Read More below for Video.
This website is not the official website of Sun Coast Real Estate. Sun Coast Real Estate does not make any representation or warranty regarding any information, including without limitation its accuracy or completeness, contained on this website. Real Agents affiliated with Sun Coast Real Estate are independent contractors and not employees.
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