Recent headlines suggest that the elusive bottom for the nation’s real estate market as a whole is in sight, but what does that really mean? If the bottom is here, near, or simply bumping along is that good news? Is the bottom in sight for Santa Barbara Real Estate prices? The reality of the current realty situation is that no one really knows what is going to happen and how quickly that “what” will happen. To view currently available properties for sale in Santa Barbara and Montecito go to www.SantaBarbaraRE.com
Here are the facts:
- Employment news is brighter.
- Mortgage rates have recently risen above 4%
- Lending is still tight
- Foreclosures are still occurring
The news with real estate is brighter because home values are no longer plummeting. While there are a few areas that are seeing mild increases, most are seeing a leveling of values if not a slight decline. While economic news is brighter the two facts that are keeping droves of buyers back into real estate are 1) lending is still tight and 2) most consumers are still approaching their finances very cautiously. For now, if rates continue to edge up more buyers may start looking so as not to miss an opportunity.
The majority of today’s buyers are still looking for real estate deals and while foreclosures continue to invade real estate markets investors will swoop in for bargains. Santa Barbara is sure seeing signs of this as multiple offers are appearing again with lots of cash buyers. Many of these cash buyers are investors who have been waiting to see a turn in the market. One recent Santa Barbara bank owned property came on the market at an asking price of $1,010,000 and had 10 offers. It closed for $1,203,000 – almost 20% over the asking price. Another ocean view home in Santa Barbara which was a Mediterranean in fixer condition had 10 offers with 7 of them being all cash. It closed for at $1,075,000 which was $80,000 over asking price! Seems maybe it is now the time to get back into the Santa Barbara Real Estate market! Click here to search for Santa Barbara homes for sale.