Santa Barbara’s next big year

Just by looking at median home sale prices over the past 12 months one might conclude that 2014 was a big year for Santa Barbara real estate. The year-to-date median for the South County is currently at $1,179,500, up 21% from $968,000 at the same time last year and 43% from $822,000 in 2012. However, with 15% less number of homes sold this year than last, a continuing trend from 2012, it may not be accurate to say that the market is booming.

When will Santa Barbara’s next big year be? Many believe it’s right around the corner and are looking forward to sorting through the new inventory that should start hitting the market in the first couple months of next year.

Sellers are certainly in tune with the different signs that the market is displaying, especially depending on which price range they’re in. Sales of homes over $2 million actually increased 25% this year where the number of sales for homes under $1 million decreased 22%. We’ve seen many entry level homes this year priced quite aggressively to keep in step with the market. It looks like 2015 may be the turn around year for lower end home sales as more and more investors enter the market to capitalize on high rents, and more entry level buyers who’ve spent the last several years reorganizing their finances rebound back into homeownership.

I wish you and your family a joyful holidays and prosperous New Year!

Here comes Santa Claus ….