Events over the past several months have helped move the Santa Barbara real estate market into a favorable position for home buyers. Last September, October, November and December saw the lowest number of sales in the Santa Barbara area since 2010 and 2011. With such a duration of lack luster sales the stage is now set for buyers to have a better time negotiating on currently available properties.
Adding incentive to good timing for buyers is the current downward trend in mortgage interest rates. Local conforming 30-year fixed loans ended last week at 3.875%, and jumbo loan rates lowered to 3.75% for a 30-year fixed and 3.125% for a 5/1 ARM. Although interest rates are not predicted to rise much throughout the year a .5% difference from today’s rate would change a buyer’s monthly payment by $181.71 on a maximum conforming loan amount of $625,500.
It’s difficult for many to act on opportunities when they don’t see others doing the same, just as it is intuitively easier to follow in another’s footsteps. There are currently excellent opportunities to purchase real estate in the Santa Barbara area that will not be available during peak months when buyer interest increases and sales begin to rise.
I look forward to keeping you up-to-date on the latest Santa Barbara market trends and purchasing opportunities throughout the year, and to responding to your very important inquiries.