The median price for a Santa Barbara home has been well over $500,000 for quite some time, surpassing the $800,000 mark in 2003, and the $1 million mark in 2004. These price points are significant in way of jumbo loan financing. In 2008 the conforming loan limit for Santa Barbara County went from $417,000 to $729,750, with a lowering to its current level of $625,500 in 2011. As a result today’s loans above $625,500 involve non-conforming jumbo loan financing.
Buyers have traditionally paid more for jumbo non-conforming loans because they’re harder to sell on the secondary market to investors, but in 2013 the tables turned due to banks having more deposits than loans. Supply and demand certainly lowered the cost of borrowing more money. At the same time, in an effort to scale down on conforming loans backed by Fannie Mae and Freddie Mac federal officials have been raising fees (known as “g-fees” or “guarantee fees”) charged to lenders. As a result today’s non-conforming jumbo loans are averaging about .25 percentage points less than smaller amount conforming loans. By contrast in 2008 non-conforming jumbo loans were costing consumers 1.8 percentage points more!
Today’s lending environment bodes well for more expensive Santa Barbara real estate, with lower interest rates in place at the higher loan amounts. Tougher qualifying standards also enter into this equation, so taking care to choose a seasoned loan agent who can help you though the process is all important. I’m happy to refer you to some of Santa Barbara’s finest lenders upon request. I look forward to your inquiries and to assisting you in getting the best terms and price for your home in paradise.
July saw 96 home sale closings in the Santa Barbara areas of Carpinteria (5), Summerland (1), Montecito (23), Santa Barbara (39), Hope Ranch (4) and Goleta (24), as compared to 115 home sales last July.
Of the 96 homes sold this July:
57 closed over $1 million vs. 54 last July
15 closed over $3 million vs. 5 last July
5 closed over $10 million vs. 0 last July
37 sold at or above asking price vs. 47 last July
37 sold in 10 days or less vs. 36 last July
14 sold after just one day on the market vs. 10 last July
Also, the average number of days on the market for a home this July was 51 vs. 42 last July and the median sale price for a home this July was $1,178,500 vs. $962,500 last July.
It’s amazing how much of a jump total sale dollar volume has taken – $215 million this July vs. $145 million last July, while the total number of sales are down almost 17%. This emphasizes that much more expensive homes are selling this summer in Santa Barbara. Recent sale figures also illustrate that really good listings are selling faster, and average listings are taking longer to sell than last year.
I look forward to keeping you up-to-date on interesting market trends and best buys in the Santa Barbara area throughout the year and always welcome your impressions and inquiries.
The 2013 film “Tiny” that documents a couple’s attempt to build a Tiny House on a very small budget and with no building experience is receiving a lot of recognition in the movie industry. Vendors such as the Tumbleweed Tiny House Company offer such homes for sale, and dozens of websites and blogs with designs, plans and discussion of tiny houses are appearing all over the Internet.
Over the past 10 years in the Santa Barbara area there have been 7 homes sold that measure less than 600 sq.ft. by the county tax assessor. The smallest being a 440 sq.ft. house that was built in 1915. Selling prices of these compact dwellings have ranged from $350K to $850K. Right now the smallest home on the market is 664 sq.ft. listed at $742K. This is a bit more expensive the tiny house prices you’ll find on the Internet, in which a piece of Santa Barbara land is not included.
In areas where land values are at a premium it may be hard to justify the tiny house concept. More commonly you will find modest homes ranging in size from 750 to 1,200 sq.ft. With well-incorporated outdoor spaces these dimensions can feel quite large. Year-round mild weather gives Santa Barbara residents great opportunities to maximize the use of all their property, indoors and out.
Whether your preference is small or large there are many homes on the market that may fit your needs. I appreciate the opportunity in helping you find the best property and look forward to your inquiries.
It’s been an interesting year for real estate in most areas of the country and the first half numbers for Santa Barbara are now in. Following are some of the most significant figures which certainly confirm that the market is slow moving but appreciating due to demand. The lower number of sales can be attributed to the continuation of historically low inventory and increasingly difficult lender qualifying standards.
Home Sales: 670 in 2013; 535 in 2014
Condo Sales: 229 in 2013; 205 in 2014
Homes Under Contract: 722 in 2013; 587 in 2014
Condos Under Contract: 235 in 2013; 226 in 2014
Home Median Sale Price: $950K in 2013; $1.16M in 2014
Condo Median Sale Price: $495K in 2013; $550K in 2014
These numbers are representative of Santa Barbara and surrounding communities which include Carpinteria, Summerland, Montecito, Hope Ranch and Goleta.
As the year progresses I look forward to keeping you up to date on the latest market trends and available properties in and around Santa Barbara. If there’s a particular neighborhood, type of property, or price range that you’re focusing on I’m happy to provide you with detailed information that would be helpful. Your inquiries are appreciated.
There have been several articles published recently regarding the rise in demand for housing near city centers. One of the more interesting articles can be found on Yahoo Finance – Click here. This information reminded me of why Santa Barbara is such a great lifestyle destination location. With downtown Santa Barbara being only minutes away from most properties in the area there’s a comforting connection felt between the beautiful city and its residents. Just as convenient for all to enjoy are the beautiful beaches, mountain ranges, public parks, and endless walking and biking trails.
The nearby communities of Carpinteria, Summerland, Montecito, and Goleta which are all within single digit miles from Santa Barbara also contribute their own convenient city centers, villages, shopping districts and outdoor amenities. A common request from potential homebuyers new to the area is to tour only properties that are close to shopping and within a few miles of the beach. That includes just about everything! In addition to having many close attractions, the accessibility is enhanced by Santa Barbara’s near perfect Mediterranean climate considered by many as the best in California. With typically over 300 sunny days per year and daily high temperatures averaging from the mid-60s to the mid-70s year-round it’s incredibly comfortable to walk anywhere, anytime.
With so much to offer in way of convenience it’s easy to understand why the phrase “location, location, location” is fitting for Santa Barbara area real estate. I look forward to hearing from you regarding which location best fits your needs and appreciate your inquiries!
In our most recent office meeting it was discussed that around 30% of pending sales have fallen out of escrow this year. This statistic was confirmed by a top title and escrow rep in the area who also added, “That’s a very high number compared with previous years”. When asked why there seems to be such a high fall out rate of escrows this year the response was “Many buyers are not able to meet the stringent qualifications that the lenders are requiring.” Even strong pre-approved loans can be turned down during the escrow process. This can be due to final loan underwriting decisions which scrutinize documentation, appraisals, sources of down payment, etc.
Another factor of escrow fall outs is related to my last article, “Which homes are selling fast”. The faster a buyer jumps into a purchase the greater the chance of that buyer feeling remorseful soon after. When quick offering deadlines are met in hopes of lessening competition it’s often difficult for many buyers to make comfortable well-informed decisions. After escrow has opened and the dust has settled it’s not hard for a buyer to change their mind.
Given the multitude of conditions that can prevent a transaction from closing in today’s market it’s most important to know dedicated professionals you can call on and trust. I offer my 20 years of experience successfully closing hundreds of escrows in the Santa Barbara area with you. Your success is always my goal. I appreciate your inquiries and the opportunity to help you with all of your real estate needs.
If you’ve decided to make a move to or from the Santa Barbara area it may be advantageous to have your running shoes on. The real estate market certainly can move fast for high demand properties. Of the 205 homes and condos currently in escrow, 58 went under contract in 10 days or less. 37 of these fast selling properties were priced under $1 million, 17 between $1 million and $2 million, and 4 over $2 million. Click here for more details.
You don’t just have to be in Santa Barbara for well-priced properties to sell very quickly, especially those which are in particularly great locations. Photos can’t always tell you everything about an area which is where local knowledge is valuable. For details on any location you are considering I appreciate the opportunity to share my 26 years of experience traveling just about every neighborhood in Santa Barbara and its surrounding areas. Thanks to all of you for your inquiries, and to your successful property endeavors in Paradise.