Sellers or Buyers Housing Market for 2017 in Santa Barbara?

SB MLS 2016 Year End

Santa Barbara Stats for South Coast MLS in 2016

Are House Prices heading up in 2017?
Will it be a Sellers or Buyers housing market for 2017 in Santa Barbara? Lets look at the overall US market first.
According to a recent Reuter’s survey of 37 analysts the housing market will be a significant contributor to US growth in 2017. The majority of the analysts surveyed believe that home prices will rise at about double the current rate of expected consumer inflation and wages for the next few years. January home sales came in at just below what they were just prior to the last downturn. We are at a 10 year high in number of sales in the real estate market. Twenty four of the 37 analysts in the poll feel that this year will be healthy for the real estate market and that housing will play a strong part in economic growth in the US. The biggest challenge is the continued limited availability of properties for sale.
In Santa Barbara we are experiencing a very limited inventory especially for the under $1,000,000 price range. Overall the South Coast of Santa Barbara had a 4 month supply of homes for sale at year end. This indicates a Seller’s market (6 months of inventory is an equal Buyer/Seller market). Montecito with its median sales price at $2,795,000 at 2016 year end had 10 months’ supply of inventory so the Buyers have edge in that market. Carpinteria and Summerland were at 7 months’ supply so favor Buyers as well. The remainder of the South Coast showed 2.7 months (Santa Barbara), 2.6 months (Goleta) and 3.7 months (Hope Ranch)- all Seller’s markets. As far as condominiums at year end it was  definitely a Seller’s market with only 2.2 months of inventory. With spring approaching there should be more homes coming on the market – whether there will be enough to satisfy the Buyers we are yet to see! It looks to be a great time to put your Santa Barbara property on the market if you are thinking of selling!