Current state of the Santa Barbara real estate market remains healthy

In response to some of www.RareEstates.com out of town clientele who have inquired as to the current state of the Santa Barbara real estate market, the Santa Barbara property market remains much stronger than most. Low end condos are really the only true negative part of our market. Properties that are well priced in good locations are still selling quickly. Gone are the days when you could put any property on the market and have it sell easily. Buyers are more selective now, but a nicely presented, relatively well priced property will still sell in reasonable fashion and there are still several instances of multiple offers on the good ones. Once again, Santa Barbara maintains its relative strength compared to other areas. In fact there are many who are viewing the recent breather in the market as a buying opportunity.

The Santa Barbara area real estate market, from $3 million and above is up 16% year to date. We’ve also seen a record number of record sales this year in a diverse number of property types.  In residential estates, Bruce Kovner, hedge fund billionaire’s total purchase of a Padaro Lane Santa Barbara beach front estate for a record $109 million has been all the buzz. For ranch land, the Jalama and Coho ranch Sale of 25,000 ocean side acres for $155 million this summer is the mother of them all. A downtown record commercial office purchase (El Paseo building) by Paul Orfalea, Kinkos founder for $25 million, The Miramar Hotel purchase for $50 Million by LA developer Rick Caruso, Graig McCaw’s purchase of 60 acres by the Bacara resort for $20 million, and a record Bonnymede Montecito beach front condo for $5 million, by a Blackstone Group, Fund manager, are all sales charting new stratospheric territory.

The Blackstone fund and Wachovia financial are 2 large financial groups actively looking to purchase mortgage back securities now in the market place, viewing them as a buying opportunity and publicly stating as much. So it would appear in our humble observation that the smart money is buying, and buying big!

www.RareEstates.com feels that this Fall will most likely be the market bottom here if there is such a thing. Mortgage rates are currently falsely inflated as a result of sub-prime over reaction. (The national default rate is 1 home in 789. That’s only .001%.) The 10 year bond yield is hovering in the high 4% range. Conventional mortgages are generally indexed 1 point higher than that. So 30 year conforming mortgages should be in the high 5% range now, when they are currently offering rates in the mid to high 6% range. This is because mortgage back securities are a little more difficult to sell in the secondary market, for now. Most financial analysts view this as a temporary situation and banks are poised to become aggressive in lending "A" credit loans across the board. www.RareEstates.com has recently spoken with many of our current clientele who are fortunate to be in this category and they have related to www.RareEstates.com that Jumbo loans as low as 6% are now available. We expect this trend to continue and improve into the 1st quarter of 2008. So we see next spring as being a fairly strong market again here with this Winter as the soft point, and a strong buying opportunity, www.RareEstates.com is happy to further explain and analyze any specific situation for any of our clients. We hope this helps make some sense of some of the current financial market instability.

The Santa Barbara real estate and unique signature property market requires well informed and invloved local expertise that is essential for the finding, successful acquisition, sale, and value analysis of rare estate properties. Custom searches of Santa Barbara beach properties, estates, Montecito homes for sale or Hope Ranch real estate information are available at http://www.RareEstates.com, a fine home sale transaction network, having specialized local resources and knowledge of unadvertised luxury properties and qualified estate property investors searching for properties.