With These Incredibly Low Mortgage Rates, Is Now a Good Time to Buy Santa Barbara Real Estate?

For most of us, purchasing a home by timing the bottom of the real estate market would be the ideal. With almost every buyer that I work  with, there will be at least a few conversations about whether I feel we are near the bottom, the overall state of the market and inevitably whether I believe that prices will go lower or not.  Unfortunately no one including myself has an exact answer to this. What is true about our real estate market is the belief by many that the current affordability here in Santa Barbara is about as good as we will see.  Prices overall have dropped around 25-35% from 2007 levels and the market overall has pretty well stabilized.  Combine this with the reality that we currently have the lowest interest rates in history and you end up with about the most affordable housing Santa Barbara has seen in decades. Sure, prices could go down some more, but for most they feel that this will be a reflection of interest rates climbing (and thus not making a home more affordable).  So if you are in the position of most buyers and will finance a purchase, look closely at these record lows we are seeing and decide if you feel this could be your best time to purchase. Here is a look at the history of the 30 year fixed mortgage rate since 1972 (the year Freddie Mac started keeping track). 1972 – 7.38 1973 – 8.04 1974 – 9.19 1975 – 9.05 1976 – 8.87 1977 – 8.85 1978 – 9.64 1979 – 11.20 1980 – 13.74 1981 – 16.63 1982 – 16.04 1983 – 13.24 1984 – 13.88 1985 – 12.43 1986 – 10.19 1987 – 10.21 1988 – 10.34 1989 – 10.32 1990 – 10.13 1991 – 9.25 1992 – 8.39 1993 – 7.31 1994 – 8.38 1995 – 7.93 1996 – 7.81 1997 – 7.60 1998 – 6.94 1999 – 7.44 2000 – 8.05 2001 – 6.97 2002 – 6.54 2003 – 5.83 2004 – 5.84 2005 – 5.87 2006 – 6.41 2007 – 6.34 2008 – 6.03 2009 – 5.04 The current average rate is now at 4.16!! Further Reading:

  1. Buyer's Resources for the Santa Barbara area
  2. Seller's Resources for the Santa Barbara area
  3. What Questions Do You Ask Your Santa Barbara Realtor?
  4. Where Do I Search for Santa Barbara Real Estate?
  5. What does $350,000 and $500,000 Buy you in Carpinteria CA?
  6. Top 10 Best Buys on The Mesa
  7. Top 10 Best Buys in San Roque
  8. 7 Great Reasons to Buy Santa Barbara Real Estate Today

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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