The Santa Barbara Real Estate Market Is Strong!

There is a lot going on in the world today, but none of it appears to be affecting the real estate market. It has been moving along steadily with no real apparent significant change.

There have been roughly 6% more sales of houses this year than last year.  It is not a record breaker, but it does show a fairly active market.

There have been more condos sold this year than last, up by about 3%.  This may seem low but the 3% increase represents primarily re-sales, not new condo sales.  There have been over 100 brand new condo sales that are not recorded through the MLS.  If these were included, it would probably exceed our 16 year high in 2015. 

The current median price is 5.6% higher than what it was last year at this time.  This indicates that prices continue to increase slowly.  It is still flirting with the all-time highs back in 2007.

The following chart breaks down the year-to-date information by area.  This gives a better understanding of how each area is doing.  It should be noted that the Hope Ranch area consists of less than 1,000 properties, so the numbers will be much smaller there.  Also, Carp/Summerland have fewer properties than the other areas. 

(Note: the area indicated as “Goleta” encompasses the city of Goleta along with the unincorporated area between Goleta and Santa Barbara.)

October 2017 Chart Summary.jpg

The Months of Inventory (MOI) is an interesting number to watch.  This indicates roughly how long it would take to sell all of the current active listings without adding additional inventory.  The overall months of inventory for single-family residences is currently at 3.7 months.  This reflects that we are in that active, steady market.

As indicated earlier, the real estate market continues on a steady path.  A healthy number of properties are selling with a median that is going up gradually.  The economy is still on the upswing and makes people more comfortable which can only be good for the real estate market.  There is talk of another quarter point of the Fed Funds rate going up, which may slow things down just a bit.  Barring any major catastrophies, the market should stay strong!

Article courtesy of Village Properties and written by Carol Kruckenberg

2016 Santa Barbara Real Estate Statistics

As you can see the number of sales of single family homes was pretty much the same in 2016 and 2015 but the median price went up significantly by 6.6%. Properties stayed on the market longer in 2016 but sellers got closer to their asking price.

The median price of a condo only increased slightly but the number of sales was way down (23.9% less). Condos stayed on the market longer in 2016 and the sellers had to negotiate more than in 2015.

So where are we headed? The forecast by the California of Realtors is predicting that the number of sales statewide will increase by 1.4% while the median price will go up by 4.3% in 2017. CAR is also forecasting that 30 year fixed rate mortgages will rise from 3.6% to 4.0%. If you are considering a purchase in 2017 it is wise to act sooner than later because your monthly payments are going to go up because of both rising interest rates and home prices.

*Statistics provided by Village Properties