Where Have The Foreclosures Gone in Santa Barbara?
Compared to many other towns across California, Santa Barbara's real estate market has held up (or recovered) pretty well since the market "crashed" in 2007. After dropping roughly 50% from peak prices, our real estate market has rebounded on average about 22-25% across the board. In the last 16 months, the market has been incredibly strong across all price points with a huge buyer demand. One main reason for this spike in our market has been the limited inventory...and part of this has been the reality that there are not many more foreclosures coming on the market here? Does this mean that we are done with bank owned properties? I spoke with several of the agents that tend to handle the majority of all the bank owned homes in our town and each one of them commented that their "pipelines" were dry. They have very few homes coming up and this so-called shadow inventory is no where in sight.
Over the last several years up until 2013, we were seeing roughly 8-12 new foreclosures each and every week come up in the Santa Barbara MLS. Over the last several months, this number has dropped to where we are around 0-2 a week on average. Although many people will profess they have answers to whether this will change...no one really seems to know. What we do know though is that over the last 6-8 months, foreclosures have pretty much dried up and are very few and far between. When they do come up, they also tend to be bid up to at or above market price and therefore feel just like normal listings.
Search: The Santa Barbara Area MLS
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.
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.