Real Estate January 7, 2014

The rebounding real estate market

Last year saw quite a rebound for the Santa Barbara area real estate market, not to mention the rest of the country. In the combined areas of Carpinteria, Summerland, Montecito, Santa Barbara, Hope Ranch and Goleta, median prices rose 17% for homes, from $826K to $968K, and 27% for condos, from $400K to $510K. The highest gain for homes was in North Goleta at 28% and the lowest in Hope Ranch at 5%. For condos the highest gain was in South Goleta at 46% and the lowest in Montecito at 6%. The City of Santa Barbara saw gains of 24% for homes and 32% for condos.

How is Santa Barbara’s rebounding real estate market fairing with the rest of the country? In a USA Today article published last week it stated that in October U.S. home prices were up 12.5%, putting them 20% off their 2006 peaks. By comparison Santa Barbara area’s home prices were up 16%, putting them 32% off of their 2005 peak of $1.275M. The article also mentions that in 2014 prices should rise more slowly due to an increase in inventory and rise in interest rates. Santa Barbara is certainly under the same interest rate constraints as the rest of the country, but inventory level is another story. The consistently low supply of available homes that Santa Barbara is known for gives potential to significantly higher home price increases than the rest of the country.

As we head through 2014 I’ll keep you well informed on Santa Barbara’s inventory levels and prices, along with many other home trends that affect the market. Your feedback and inquiries throughout the year are much appreciated and I look forward to hearing from you.