Strong low end sales lead the way
It’s often said that lower priced homes lead the direction of real estate market sales. Santa Barbara historically sees changes in the lower end market first with somewhat of a lag time before the high end follows suit. There’s no doubt that low end sales in Santa Barbara have picked up considerably over the past several months. A lot of this is due to realistic pricing by sellers, stabilization of mortgage lending standards, and more investors entering the market.
Currently there are 114 houses listed in Santa Barbara and surrounding areas that are priced under $600,000. 58% of those listings are under contract by buyers. 47% of those listings under contract went pending within 21 days of being listed!
In the $600,000 – $1M price range there are 172 houses listed and 42% of those listings are under contract by buyers. In the $1M – $2M price range there are 170 houses listed and only 24% of those listings are under contract by buyers.
Santa Barbara’s last peak for low end homes happened towards the end of 2005 and for high end homes near the beginning of 2007, about a year and a half lag time. A similar lag time could be expected for the current market turn. If so 2013 may be the beginning of strong sales for all price points in Santa Barbara. I look forward to keeping you posted and to any specific inquiries you have.