An interesting statistic to bring to your attention is that the Santa Barbara median price of a home so far this year has dropped by 5%. If we break it down by price range and sales, with entry-level being under $1.5M, mid-range between $1.5M and $4M, and high-end over $4M we can see that sales in both the entry-level and high-end have increased this September over the same time last year, and mid-range sales have actually dropped by more than 50%.
At this month’s recently held Federal Open Market Committee meeting the U.S. central bank declined on raising interest rates. This is a blessing for entry-level buyers making purchases in Santa Barbara with financing. There are just two more meetings left in the year for the FED to raise rates, and many are now betting that they won’t.
With a much higher percentage of mid-range buyers using cash to purchase real estate in Santa Barbara the news of interest rates remaining unchanged may not be resonating as well. This is in addition to recent lackluster news on the direction the global economy is headed. Mid-range buyers certainly appear to be taking caution on where they’re putting their money, at least that’s what recent sales figures show. And for the high-end segment, well what can we say, there certainly are a lot of people doing well these days, and what better place to shelter their money than in a paradise like Santa Barbara.
I appreciate the opportunity to assist you in locating your best opportunities in today’s market and look forward to keeping you updated on Santa Barbara’s latest trends throughout the year.