Currently one-third of home sales nationally are transacted with all-cash, down 4.5 percentage points from a year ago. All-cash purchases hit their last record peak nationwide in January 2011 at 46.6 percent, and during the first three months of 2014 all-cash transactions accounted for 43 percent of national sales. Experts predict that cash sales will fall to a historically normal level of around 25 percent by mid-2017.
In the South Santa Barbara County real estate market all-cash transactions currently only account for 22 percent of single family home sales, down from 30 percent a year ago. Santa Barbara hit its peak of 41 percent in October 2012.
Strict lending standards and high buyer competition are two major buyer stimulants for all-cash transactions. Santa Barbara’s counterbalance is its higher cost of properties which make it more difficult for most buyers to transact with all-cash. The U.S. median sale price for homes and condos last month was $228,900 compared to South Santa Barbara County’s median sale price of $875,500.
Following are the highest all-cash sales that have taken place in Santa Barbara, Hope Ranch and Montecito so far this year.
Santa Barbara – 603 E. Calle Laureles – Sold for $3,005,300
Hope Ranch – 4693 Via Bendita – Sold for $4,631,500
Montecito – 1127 Hill Road – Sold for $12,500,000
It’s typical in Santa Barbara to see the most desirable and/or attractively priced properties receive multiple offers with all-cash quick close terms included. Most often the successful buyer is assisted by a very skilled and experienced local real estate agent who really knows the market and negotiates well. I look forward to your inquiries regarding best properties and strategies for acquisition and appreciate the opportunity to assist.
There are some hot spots leading the way so far this year in the Santa Barbara real estate market. Year-to-date Hope Ranch home sales have seen a 350% increase in number sold and 400% increase in number under contract when compared to last year. In addition, Santa Barbara East area sales and pending sales have increased 31% and 69%, and the Carpinteria/Summerland area has also seen double digit increases of 50% and 42%. The hottest spots for sales and pending sales of condominiums are currently in the areas of Goleta North with 66% and 33% and Santa Barbara West with 11% and 66% increases.
Santa Barbara’s high end Montecito area has seen the biggest decreases this year in sales and pending sales with -58% and -36% for homes and -85% and -60% for condos.
The most notable home sales so far this year in Hope Ranch, Santa Barbara and Carpinteria/Summerland are as follows.
Hope Ranch – 929 Cannon Road – Sold for $4,525,000
Santa Barbara – 401 E. Pedregosa Street – Sold for $2,424,000
Summerland – 2210 Calle Culebra – Sold for $1,350,000
I look forward to keeping you up to date on the hottest areas and property opportunities in Santa Barbara throughout the year. Your inquiries are welcomed and much appreciated.
With many various predictions and differing expectations for the housing market this year Santa Barbara is off to a great start. Year-to-date numbers show that inventory has increased for both homes and condos, 22% and 7% respectively. The number of homes under contract is up 23%, and number of condos sold is up 33%. So far the lower price point market has outperformed luxury sales, with entry level buyers taking advantage of the historically low interest rates still available. If interest rates begin to rise this year as many predict the Santa Barbara real estate market could shift back to seeing more higher-end all-cash purchases and less entry-level financed property sales.
Santa Barbara is also off to a great start this year regarding rainfall after the last several years of drought conditions. Recent rains have brought back the beautiful lushness of the area’s vibrant scenery, with many property landscapes showing more colorfully than ever before. Click here for the county’s yearly rainfall report that’s updated daily.
February also marks the start of Santa Barbara’s famous International Film Festival, attracting numerous celebrities, tourists, and paradise goers to the area. Popular events like this have certainly boosted the visibility and interest level of local real estate in the past. Click here for festival details including appearances by Denzel Washington, Emma Stone, Ryan Gosling, Casey Affleck, Michelle Williams, Isabelle Hubbert, and Jeff Bridges.
This is an exciting time in real estate for high demand markets such as Santa Barbara and I look forward to bringing you the most current information and attractive property opportunities offered throughout the year. As always your interest and inquiries are very much appreciated.
Most predictors point to growth for the U.S. housing market in 2017. One of the most optimistic outlooks has just surfaced from economist and Nobel laureate Robert Shiller who indicates that an upcoming housing boom is not out of the question. To read the full article click here. With slightly rising interest rates it’s pointed out that many buyers may begin to lock in and secure housing before rates go up significantly. Investors are also betting that Trump will follow through on may campaign promises that could fuel the housing market, with backing from the now Republican majority Congress.
Zillow and Redfin are predicting that home values in 2017 will grow 3.6 percent and median prices 5.3 percent respectively, with inventory and number of home sales expected to increase and days on the market for homes expected to decrease.
I look forward to keeping you up-to-date on local offerings, real estate activity and market trends in the Santa Barbara area throughout the new year and appreciate your inquiries.
Mild temperatures in the mid to upper sixties and mostly sunny skies expected for the remainder of the year make Santa Barbara a great location to enjoy the holidays. In addition to all the wonderful outdoor activities and beautiful scenery that can be enjoyed there are plenty of special holiday events, celebrations and dining opportunities happening around town. For information on several spots that will be bringing in the holiday cheer click here.
The holidays are also a great time for those who’d like to look at real estate while off work or in areas they’ll be visiting in. There are many properties currently available in Santa Barbara to consider, not all of which are being actively advertised. Some of these properties have been temporarily taken “off the market” for the holidays, or are being prepared as new listings to be showcased after the first of the year. Prior to officially marketing many sellers are quietly advertising their properties as being available to interested buyers, with showings arrangeable by appointment.
I hope to see you out and about in Santa Barbara over the holiday season and appreciate any inquiries you have regarding current or up and coming real estate offerings in the area.
It’s been widely publicized over the past week that U.S. home prices have just surpassed record highs set a decade ago. Details can be read in an article published by HousingWire, along with data collected by Case-Shiller, through the following links: HousingWire, Case-Shiller.
Reading past the headlines of articles on the subject one can see that the new record highs are highly dependent on the area of the country you live in, and when the effects of inflation are factored in home prices are relatively still about 20% below peak.
The 2016 median home price for the Santa Barbara area currently stands at $1.2M, which is a 4% increase over last year. In 2005 the Santa Barbara area real estate market experienced its still standing record median home price high of $1.275M.
If median home price gains continue at their current pace then Santa Barbara won’t surpass its previous record level until mid-2018, giving local buyers the opportunity to capitalize on lower prices and interest rates than will likely be seen in the future.
Thanks to everyone for sending in your real estate inquiries. I appreciated the opportunity to assist you throughout this holiday season and eventful upcoming year.
Following are the current YTD and mid-Q4 housing market stats for Santa Barbara and surrounding areas. Condos have decreased in every category except for median price, and houses have had increased in inventory, number under contract (mid-Q4), number sold (mid-Q4), and median price.
YTD – Percentage Change Over Last Year
Condos: 10% decrease in number of listings, 23% decrease in pending sales, 24% decrease in number sold, 16% decrease in sold volume, 7% increase in median price from $595,000 to $640,000.
Houses: 5% increase in number of listings, 11% decrease in pending sales, 6% decrease in number sold, 13% decrease in sold volume, 3% increase in median price from $1.155M to $1.2M.
Mid-Q4 – Percentage Change Over Last Year
Condos: 41% decrease in new listings, 15% decrease in pending sales, 12% decrease in number sold, 20% decrease in sold volume, 5% increase in median price from $617,500 to $649,000.
Houses: 22% increase in new listings, 22% increase in pending sales, 4% increase in number sold, 19% decrease in sold volume, 5% increase in median price from $1.032M to $1.09M.
It will be interesting to see how year-end numbers finish up for Santa Barbara’s real estate market. Many home buyers have come off the fence in the past month and a half, prompted by new inventory and a previous lack of buyer competition for available properties. I look forward to keeping you posted with the latest news and appreciate your inquiries.