Housing and Romance
Happy Valentine’s Day! In honor of this great occasion the following article has been written and looks at the intersection of attitudes about housing and romance. A topic not emphasized in the article is how the specific location of your property enters into the equation. I believe romantic cities like Santa Barbara should be given extra credit. Enjoy!
Strong low end sales lead the way
It’s often said that lower priced homes lead the direction of real estate market sales. Santa Barbara historically sees changes in the lower end market first with somewhat of a lag time before the high end follows suit. There’s no doubt that low end sales in Santa Barbara have picked up considerably over the past several months. A lot of this is due to realistic pricing by sellers, stabilization of mortgage lending standards, and more investors entering the market.
Currently there are 114 houses listed in Santa Barbara and surrounding areas that are priced under $600,000. 58% of those listings are under contract by buyers. 47% of those listings under contract went pending within 21 days of being listed!
In the $600,000 – $1M price range there are 172 houses listed and 42% of those listings are under contract by buyers. In the $1M – $2M price range there are 170 houses listed and only 24% of those listings are under contract by buyers.
Santa Barbara’s last peak for low end homes happened towards the end of 2005 and for high end homes near the beginning of 2007, about a year and a half lag time. A similar lag time could be expected for the current market turn. If so 2013 may be the beginning of strong sales for all price points in Santa Barbara. I look forward to keeping you posted and to any specific inquiries you have.
Biggest month in Santa Barbara since 2007
Closed sales last month in South Santa Barbara County hit 170. This is the biggest number of sales since May of 2007, and 35% more sales than the previous month. Prices are now at or below where they were in 2002, with interest rates even lower. This makes purchasing a home in Santa Barbara less expensive that it was 10 years ago, a truly unprecedented phenomenon. If you factor in the value of today’s dollar vs. 2002, about a 25% difference, it gets even less expensive.
Buyers are starting to read the writing on the wall, along with the mass media whose numbers are typically several months behind. If you’ve been waiting to make a purchase in Santa Barbara there may be no better time than the present. I look forward to your inquiries and to keeping you up to date on the changing market.
Buyers are looking for sellers in 2012
Bridging the great divide is how the LA Times put it this weekend. With mortgage rates below 4% and prices near bottom in many markets, it’s a good time to buy a house. But many owners won’t sell because they can’t get the price they want. Read the full article here.
Santa Barbara’s sellers are showing the sediment mentioned in this article, causing inventory levels to drop 11.8% over the same period last year. This is in addition toSanta Barbara’s already historically low inventory levels.
With more buyers looking for sellers in 2012 it will be challenging times for finding the right home. I look forward to your inquiries and to keeping you informed with every opportunity throughout the year.
Looking at a new year
Now is the time when may people reflect on the past year and think about what the new year has in store. I’d like to share with you some year-end numbers that shed light on the Santa Barbara real estate market.
Today there are only 734 active house, condo and land listings in the Santa Barbara area, stretching from Carpinteria to Goleta. A year ago there were 818 listings.
Today there are 281 pending house, condo and land sales in the area. A year ago there were 201.
Today there are 1,335 year-to-date sold listings in the area. A year ago there were 1,326.
Today the average 30-year fixed mortgage interest rate is near 4%. Last week it matched an all-time low of 3.94%. A year ago it was 5%.
Today the unemployment rate in Santa Barbara County is near 8.2%. A year ago it was 10%.
There are a lot of numbers at this year’s end that indicate a strong 2012 market for Santa Barbara. We all look forward to good things happening. I hope to hear from you this coming year.
Exciting new Santa Barbara homes
The new Bella Riviera home project in Santa Barbara will be having its Model Grand Opening on January 21st, 2012. There are only 34 units available to the public in this unique development. The two and three bedroom townhomes, ranging in size from 1,023 sq.ft. to 1,578 sq.ft. will be priced from the low $600,000s. Ocean and city views from some of the units will be exceptional. Another 81 units will be available only to employees of the Cottage Health System.
Special early previews of these new homes are available to Santa Barbara brokers by appointment. If you’re interested in having a look please contact me and I will make arrangements to get you in. I plan to be on site and looking at three new completed models this Thursday, December 8th if you’d like to join me. I can also get you more details on best buys and strategies to purchase prior to the development’s plans to accept offers on January 28th. All buyers are asked to designate the agent they’re working with when registering at the complex. I appreciate the opportunity to be of assistance as your buyer agent and consultant.
John Bahura, Village Properties, 805.680.5175
Big changes for a small town
With Santa Barbara’s current city population hovering around 88,000 (an approximate 4% decline from 10 years ago) it’s hard not to notice even the smallest changes that happen to the profile of “America’s Riviera”. Two of the city’s most prominent thoroughfares, State Street and Cabrillo Boulevard, are seeing big changes now or in the near future.
There’s the planned “La Entrada” Project on 2.37 acres of lower State Street which includes rebuilding of the Californian Hotel, new restaurants, shops, open plazas, paseos and gardens, parking, a spa, and 9 vacation timeshares.
Many new retailers, restaurants and businesses are changing the makeup of State Street’s commercial corridor. REI, S.B. Rock Gym, Savvy, Paper Source, El Cielito Restaurant, Maggie’s at State & A, Mimosa and Petros Greek Restaurant are just to name a few. Click here for more details.
Cabrillo Boulevard’s long time vacant 23 acre oceanfront estate located across from the Bird Refuge and worth an estimated $100 million is also in starting transition. The former owner Huguette Clark passed away in May at the age of 104. The property’s destiny will be influenced by the legal settling of Huguette’s $400 million estate. Click here for the story.
Good news for Santa Barbara
Last month Congress failed to extend the Fannie Mae, Freddie Mac, and FHA conforming loan limits and allowed them to expire Sept. 30. Since then, the Senate passed an amendment to an appropriation bill that would restore the $729,750 loan limits through December 2013. The Senate and House are now working out the differences between the Senate bill and the House bill, which the House passed earlier this year, but it did not reinstate the higher loan limits. If the House and Senate agree on a final bill, we will have a two-year extension to the conforming loan limits. C.A.R. is also working with the California Congressional Delegation to ensure this provision is included in the final bill.
With Santa Barbara’s current median house price at $780,000 (down almost 36% from Santa Barbara’s 2005 peak median house price of $1.216,000) the passing of this bill would help to keep sales at a good pace. Coupled with historically low interest rates this will be a great equation for buyers who have been waiting to enter the market at a good time. I look forward to keeping you updated on this and other changes that could help you with a great home purchase in Santa Barbara.
Home buyer challenges have silver lining
Limited real estate inventory has always been a factor in the Santa Barbara area. A region land locked between the Pacific Ocean and Santa Ynez Mountain Range with no room for expansion. Combined with a rare Mediterranean climate, only one of five in the world, and immense scenic beauty, few Santa Barbara home owners ever want to sell their properties. Working with a slow stream of inventory is very difficult for buyers who can literally wait years for the right home to appear, sometimes only to find multiple offers pull it away.
The challenge of finding and obtaining a suitable home holds true even more so today. The Wall Street Journal states in one of its most recent articles “The housing market, which has struggled with an oversupply of homes for years, is facing a new problem: a lack of attractive inventory.” “More people are pulling their homes off the market rather than try to sell them at today’s discounted prices.” The article outlined several major cities across the U.S. in which inventory levels have dropped an average of 37% from a year ago.
Discounted prices and historically low interest rates are the silver lining for buyers who can overcome the tight inventory. I appreciate the opportunity of assisting you with your home search and look forward to your inquiries.
Exciting upcoming events in Santa Barbara
With Santa Barbara’s best weather months in bloom there are many exciting upcoming events to enjoy in paradise! Following are some of the popular activities to put on your calendar.
Oct. 15 - Santa Barbara Beer Festival - www.sbbeerfestival.com
Oct. 15-16 - Lemon Festival & Car Show - www.lemonfestival.com
Oct. 20-23 - Ojai Film Festival - www.ojaifilmfestival.com
Oct. 23 - Santa Barbara Chowder Fest - www.sbchowderfest.com
Oct. 28 - Halloween Extravaganza - www.callerealcenter.com
Oct. 28 - 3rd Annual Pumpkin-Carving Contest & Fall-Themed Wine Tasting - www.sbcaf.org
Oct. 31 - Downtown Trick-Or-Treat - www.santabarbaradowntown.com
Nov. 5 - Toad the Wet Sprocket - www.lobero.com
Nov. 12 - Santa Barbara International Marathon & Half- Marathon - www.sbimarathon.com
Nov. 18-20 - Santa Barbara National Open Western Show - www.earlwarren.com
Dec. 2 - Downtown Holiday Parade - www.santabarbaradowntown.com
Dec. 4 - Sledding at the Zoo and Snow Leopard Festival - www.sbzoo.org
Dec. 11 - Harbor Parade of Lights - www.santabarbaraCA.gov/visitor/things/waterfront/
Dec. 17 - WinterFUNderland – www.sbnature.org
Dec. 31 - New Year’s Eve Pops Concert - www.granadasb.org
Of course this is also a great time of year to be purchasing real estate in Santa Barbara. In September 162 closings were recorded in the area, a 23% increase over any September in the past six years! I appreciate your further inquiries on properties and aspects of the market that interest you.
