Real Estate January 20, 2015

Santa Barbara market off to a quick start

If the first three weeks of 2015 are any indicator we could be looking at a very strong year in real estate sales for Santa Barbara. Compared with the same period last year we’ve seen the following increases for condos and homes combined: number of new listings up 34%, number of pending sales up 14%, number of closed sales up 11%, and total sold dollar volume up 61%.

The extremely low inventory levels that held back sales during most of 2014 look to be headed in a positive direction. This is a nice change for buyers who have been patiently waiting for a better selection of homes. Total inventory is now up 9% over the same period last year. Another nice purchasing incentive for buyers is the further drop in interest rates that have been occurring. The U.S. 30-year Treasury bond which has a big influence on rates actually hit an all-time low last Wednesday.

Although the number of homes available in Santa Barbara has increased from last year the level is still less than when Santa Barbara had its largest price increases in 2005. This may indicate that there’s not enough inventory for prices to fully rise to their potential. There have already been 19 new listings this month that have gone into escrow after being on the market for less than a week.

With such high demand and quick turnaround it’s important to stay informed of new listing information early on. Some of Santa Barbara’s best properties have been selling before their first scheduled open houses. If you have a specific type of home in mind I would be happy to hear from you and keep you up-to-date with the newest and best Santa Barbara offerings that fit your criteria. Your inquiries are much appreciated.