The Santa Barbara real estate market is looking good as it heads into the fourth quarter of 2013. This is amidst recent national news articles pointing to other areas of the country as beginning to experience a real estate slowdown. Many of the prominent headlines read “Pending Home Sales Decline in August”. One article refers to low inventory, higher interest rates, increased home prices and restrictive lending as contributors to the decline in sales. It states that homes going under contract dropped 1.6 percent from July to August this year. Read the full article here.
By contrast, Santa Barbara saw a 5.6 percent increase in the number of homes under contract from July to August this year. September has also shown a considerable increase in the number of homes under contract and closed sales when compared to last year, 7 and 9 percent respectively. One other interesting trend is that the number of homes selling over $1M represented only 37 percent of the market in Santa Barbara at this time last year. The figure has increased to 45 percent this year.
With real estate appreciation rates reaching their highest levels since the last market peak of 2006, economic experts are predicting that there will be a slowdown in most areas of the country to more sustainable levels. This is great news. It’s also great news that a reversal of the overall housing recovery is not in the predictions.
Santa Barbara has continued to show gains in popularity with its very high quality of living (some would say the best in the world) and historically higher level of real estate appreciation. I appreciate your Santa Barbara lifestyle and real estate questions and look forward to hearing from you. Thanks to everyone for your inquiries.