Foreclosures and Short Sales in The Santa Barbara Real Estate Market...2015

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Here and there I am still asked by potential buyers, certain clients and/or in just basic conversation about the short sale and REO/Foreclosure market in the Santa Barbara area...Santa Barbara, Goleta, Carpinteria, Montecito, SummerlandHope Ranch. The questions all seem to have the same theme of whether we see anymore distressed sales in our area or not. The reality is is that there really is no longer per say a "market" anymore for distressed real estate in our area.  As the overall real estate market has recovered during the last 3 years, what I have heard and seen via being a realtor is that almost everyone that was in trouble has via various means come out of this via:

  • selling their homes
  • obtaining a better loan and can now make the current payments
  • having simply hung on and now fortunately have equity once again

Just viewing the MLS over the last year, it shows that we are only seeing either a short sale or REO listing come onto the MLS 1-3 times a month on average.  This is then across all price points, although most of these do tend to be in the lower end price range.  This amount of listings then equates to around only 1% of our entire real estate market. The other reality is that most of the short sales and foreclosures that hit the real estate market are also no longer a deal as they are bid up generally to an at market price...sometimes even higher.  Because there are so few on the market, each new listing is seen by everyone and thus treated as a normal sale as far as value...meaning that even if it is priced low the market will bid it up.  

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For more information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our wonderful town, please don’t hesitate to contact Kevin Schmidtchen at Berkshire Hathaway Home Services.

Thank you for reading.  I hope you find Santa Barbara Real Estate Voice informative.  Please feel free to contact me or comment below with any thoughts.

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