The Santa Barbara Association of Realtors recently held its Real Estate & Economic Review & Forecast for the Santa Barbara real estate market at the Montecito Country Club. This review of the recent Santa Barbara Real Estate market dynamics, including the luxury real estate market, shows the median price has come down over the last 12 months, yet upon an analysis of past years, the 2008 median price is higher than the median price of 2004. The recent increase in number of sales at the lower end of the Santa Barbara Real Estate market has had a downward effect on the median price. However, looking at the 10 year period from 1996-2005, there was an amazing 303% increase in the median sale price of homes in Santa Barbara real estate market! Santa Barbara Real Estate has proven to be an excellent long term investment. Historically it has doubled approximately every 10 years, so to buy now when we have just experienced a short term median price correction may be the smart move particularly in light of recent historically low mortgage rates which cannot last forever.
Looking at the Montecito Estate market in the $2,000,000 – $4,000,000 price range there are currently 43 active homes for sale with 4 in escrow. This is a 10 month + supply. A 6 month supply of homes for sale is considered a balanced market for buyers and sellers with less being a seller’s market and more translating to a buyer’s market. Thus, this 10 month supply of Montecito Homes for sale currently offers some tremendous opportunities for buyers. Again, add to that the historic low interest rates and it may very well be the most opportune time to buy a Montecito Estate! Indications are it is now a Montecito Buyer’s Market! Historically, a rare occurrence.