Summer’s here in Santa Barbara
Summer’s here in Santa Barbara and there are plenty of great events and activities to enjoy. In addition to taking in the incredible weather, scenery, people and wonderful real estate opportunities you might consider some of the following.
I Madonnari on May 26-28
State Street Mile on June 3
Live Oak Music Festival on June 15-17
Summer Solstice Parade and Festival on June 22-24
Santa Barbara Wine Festival on June 30
Semana Nautica on June 29 thru July 9
Independence Day Celebration on July 4
Pacific Pride Festival on July 7
CA Wine Festival on July 19-21
Fiesta – Old Spanish Days on August 1-5
Santa Barbara Triathlon on August 24-26
I look forward to seeing you this summer and appreciate your real estate inquiries.
Santa Barbara’s popularity increases
Santa Barbara’s popularity is on the rise. City occupancy tax figures increased 14.9% for March of this year in comparison to last year, and have grown 10.1% year-to-date. Strong tourism amongst U.S. and international visitors coupled with many Californians vacationing closer to home has given Santa Barbara commerce much to be happy about. With percentage of second home purchases on the rise Santa Barbara is also seeing out-of-town buyers adding to their real estate sale numbers. There were more closed properties in March of this year than any previous March dating back to 2006. Currently a total of 375 homes and condos are under contract compared to 252 at this time last year. A large number of these contracts are from out-of-town buyers paying all cash for their second, or third, or… home.
Whatever type of property you’re interested in, whether vacation or primary residence, I would enjoy hearing from you. Your inquiries are appreciated.
The Competition is Heating Up
Of the 20 property sales that our company participated in last week, 7 were involved in multiple offers, a 35% ratio. Of the 30 property sales that showed closed in the Santa Barbara Multiple Listing Service, 7 sold above original list price and 4 sold at original list price. That’s a 36.7% ratio of properties that sold at or above their asking prices.
There are many reasons for the increase in competition for properties in Santa Barbara. Currently there are only 704 active listings in the area, where at the same time last year there were 902. Sellers are continuing to price their properties competitively and interest rates are still being offered at historic lows. This low availability coupled with higher affordability has definitely raised the heat on competition for properties in paradise.
If you’re interested in a particular property or would like more information about the market I would enjoy hearing from you. Your inquiries are appreciated.
1st Quarter Stats
How did the Santa Barbara area real estate market do in the 1st quarter of 2012? There was a 31 % increase in the number of residential home sales in the 1st quarter of this year with 247 units sold compared to the 1st quarter of 2011 with 188 units sold. Similarly there was a 40% increase in sold dollar volume. Number of homes that went under contract increased 52%, showing a strong start for the 2nd quarter.
Condominium sales also showed a nice increase of 26 % with 73 units sold this year versus 58 units for the 1st quarter of 2011. There was a 7% increase in sold dollar volume for this segment of the market. The number of units that went under contract increased an incredible 122%, which should translate into a huge number of 2nd quarter closings.
With pending sales at such healthy levels we can only predict that 2012 will continue to out perform 2011. Here’s to a good year!
Field of Dreams
In recent times the playing field for buying opportunities in the housing market has expanding in just about every category, with the exception of a less abundant inventory. There is pressure now being put on this “Field of Dreams” which may start changing the rules of the game for buyers and sellers.
The pressure we are beginning to feel is due to the eminent effects of inflation. With the world around housing becoming more expensive so is the pressure for housing to become more valued.
Here are some of the inflationary factors that are coming into play.
1) Loans are becoming more expensive. FHA has announced that mortgage insurance for FHA loans will increase April 1, 2012 and again on June 1, 2012. This is one example of the increasing costs of borrowing money and a sign of things to come.
2) Renting is becoming more expensive. CNN Money and Forbes point this out in their recent articles, Home Buying Much Cheaper Than Renting and Where Buying Beats Renting A Home.
3) Other forms of investment have become more expensive and many feel that inflation rates are poised to go up. This is affirmed by The Financial Forecast Center.
The current field of dreams still has many opportunities. I look forward to hearing from you and appreciate your inquiries!
Too good to be true
More often than ever there are properties being listed in and around Santa Barbaraat asking prices that look too good to be true. This is due to the increased number of sellers competing to have the best priced property and fastest sale. Add to this the out of area appraisers and agents that many of the banks hire (inexpensively) to price and sell their REO properties. A dollar saved is a dollar earned, right? Well, not usually for a seller of real estate that’s in high demand. Fortunately for many sellers the increasingly competitive market will help lessened the effects of their mistakes.
If it looks too good to be true it probably is. Many buyers are being lured by the prices some sellers initially advertise, only to be disappointed by losing out in the increasingly common multiple offer situations. Just last week a newly listed bank owned property in Goleta drew 17 offers. It’s important under such circumstances for a buyer to accurately evaluate the true market value of the property and place their bid accordingly. Similarly when offering on a property that’s over priced it’s critical to have an idea of its true market value.
Sometimes the only thing standing between a buyer and a property they really like is a seller’s asking price. I appreciate the opportunity to assist in such situations.
Santa Barbara’s hot
How is the Santa Barbara real estate market shaping up for 2012? For houses, PUDs and condos the following first month increases took place as compared to the same time last year. The number of properties under contract increased 79%, the number of closed escrows increased 36%, the sold dollar volume increased 46%, and the median sale price increased 10%.
This year Santa Barbara may post its hottest sales numbers since 2007. It will be quite some time before the median sale price returns to the over one million dollar level reached from 2005 through 2007, but most sophisticated buyers are recognizing that they may not see prices like they’re seeing in 2012 again. Choosing from the currently low inventory level is difficult but may show to have its economic advantages. It will take higher prices before many owners will consider selling properties that a large number of buyers are specifically looking for.
As always your inquiries are appreciated!
