There are many reasons why Santa Barbara area real estate buyers and sellers have decided to wait until next year to pursue a purchase or sale. With the lack luster amount of inventory Santa Barbara experienced this year, many buyers were either unable to find their perfect home or were out bid on homes that finally surfaced which met their needs. Periods of uncertainty in the economy coupled with widely fluctuating interest rates and tough loan qualifying standards also helped to lessen buyer motivation. Expectations of higher inventory levels and more stable economic conditions for 2014 have added to the desire of a lot of buyers to wait.
Sellers have also been feeling that their patience will be a virtue. Steadily increasing prices along with a stronger economy point to higher sale profits next year. A reemerging jumbo loan market with less lofty lending standards is also expected to provide fuel for more high-end sales during 2014 in the Santa Barbara area. Instability in the jumbo loan market was a major contributor to the less than spectacular overall sales volume that Santa Barbara experienced in 2013. The current year-to-date median home sale price of $968,000 requires a buyer with 20 percent down payment to obtain a jumbo loan.
Given these market conditions it looks like much activity is set for next year. I welcome all of your inquiries and appreciate the opportunity to assist you with your real estate endeavors in 2014.