What Part of the Santa Barbara Real Estate Market Sees the Most Foreclosures and Short Sales?
Since the peak of our real estate market in 2007 and 2008 (Montecito until 2008), property values have fallen on average here in Santa Barbara around 35-38%. Certain unique homes have fallen somewhat less in value, while certainly other pockets of the market have fallen more in value upwards of around 40-45%
Because of this reality, many people have unfortunately lost all their equity in their homes and have had to go the route of foreclosing on their homes or trying to sell their homes as short sales. Often I am asked about distressed properties here in our town and depending on what you are looking for, you might be hard pressed to find them as they seem to exist mainly in certain price points.
What parts of the market have the most Foreclosures and / or Short Sales?
Over the last few years, the majority of our foreclosures and shorts sales have taken place with:
- single family homes generally around the $350,000 to $800,000 price point
- condos and town homes generally around the $190,000 to $550,000 price point
I would say that upwards of 80% of our distressed properties seem to fall within this criteria. We obviously have distressed sales across the board at all price points, but as you go higher in value, they are much less common. What this definitely does not mean is that as you go up in value people are not in trouble. It is simply the reality that most of what we are seeing on the market as distressed properties are overwhelmingly in the lower end price points.
Search: The Santa Barbara Area MLS
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 Berkshire Hathaway.
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.