Signs The Real Estate Market has Recovered in Santa Barbara? - Cash Buyers are Abound

One of the most asked questions (or version thereof) that I get as a real estate agent here in Santa Barbara the last 6 months is whether the market has recovered or not...or does the market feel stable...or do you think we are going to drop anymore?  The reality is simply that no one knows this answer, but everyone has an opinion. Here are my thoughts about where the pulse of our market is in Santa Barbara. Over the last 6 to 8 months we have felt pretty stable with about 80% of our market.  The most stable part of the market is from the entry level price point of around $300,000 to about $1.5 million.  The bulk of this from around $550,000 to $950,000 is also seeing a lot of multiple offers on homes and some of these as many as 5-8 offers. Buyers are very comfortable lately and most people tend to feel that the interest rates are as low as they are going to get and therefore affordability is at is best right now.  It also feels that everyone now once again knows price points and where the market is at.  If a home is attractive and priced low, it is getting multiple offers.  If a home is attractive and priced too high it is simply sitting until the owner reduces the price. For me, one of the key factors in telling how the market is doing and whether prices feel pretty stable is to see what investors and all cash buyers are doing.  It is much easier to leverage deals and home purchases with banks money, but when investors and home buyers are putting all their own cash in on the deal...that is only a positive sign.  This tells me that they believe that prices are pretty firm and that cash is not going to be getting you that much of a better deal than a solid buyer with say 35% down. The latest statistics nationally with sales involving all cash transactions were 26% of the market.  That is a big number.  Here in Santa Barbara we are seeing numerous all cash offers all across the board from lower end condos to investments to the "quintessential family home" around $1.25 million. The only part of the market at this point that still feels a little uncertain is the high end market from around $2.5 million and above.  Here there are also all cash offers, but still a fair amount of homes sitting and a fair amount of homes that feel overpriced. Further Reading:

  1. The Mesa Neighborhood 2009 Sale Statistics
  2. The Riviera Neighborhood 2009 Sales Statistics
  3. Hope Ranch CA Real Estate Home Sales Statistics - 2009
  4. Montecito CA Real Estate Home Sales Statistics - 2009
  5. The Upper East Neighborhood
  6. Santa Barbara Market Statistics
  7. Santa Barbara Photo Tour
  8. Buyer's Resources for the Santa Barbara area
  9. Seller's Resources for the Santa Barbara area

For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty. 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. Subscribe to Receive Personal Listings of Santa Barbara Real Estate Search The Santa Barbara Area MLS

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