Rising prices and interest rates are what we’re continuing to see this year for the Santa Barbara real estate market. The median price for a home has moved from $838,250 for the second half of 2012 to $957,500 for the first half of 2013 and interest rates have gone from 3.375% for a conforming 30 year fixed loan at the beginning of the year to as much as 4.625% this week.
The large increase in median price for the first half of the year indicates that the higher end home market is starting to heat up. It will be interesting to see if this trend continues. Santa Barbara’s market history shows that after the low end heats up the high end soon follows. Actress Drew Barrymore just listed her Montecito home on Pepper Lane for $7.5M that she bought in 2010 for $5.7M. For details of the property click here.
Buyers are still feeling that there is a long way to go before prices top out as the median figure of $1,285,000 for homes in 2005 sets a fairly high bar. There is also greater confidence surrounding the current rising market due to strict lender standards and more cash purchases which should increase stability of home prices over the long run.
What are your thoughts on today’s market and do you feel it’s a good time to buy or sell? I appreciate your comments and the opportunity to assist you with any of your real estate needs.