What is the current state of the Santa Barbara Real Estate Market, Montecito real estate, Hope Ranch properties and surrounding areas?

Recent analysis of some strong market indicators, We have found the following:

Today, on the Santa Barbara real estate market supply side, there is about a 4 month supply of Santa Barbara homes for sale in the median price range of the Santa Barbara real estate market place, greatly improved from an 11 month supply in the Fall of ’07.  The higher end market supply of the Santa Barbara real estate market place is also low. This is somewhat unique in Santa Barbara and not the case for other areas in California or nationally. For example: Phoenix, AZ. Which current has an inventory supply at 18 months of homes on the market, is influenced by over development and less draw, while the average inventory nationally is about an 11 month supply.

On the demand side of the Santa Barbara real estate market, with the FHA loan limit now raised to $729,750, from $417,000 for Santa Barbara County real estate, we are experiencing a 50% to 70% increase in the amount of loan applications processed comparatively to Aug. thru Dec. of last year. The more desirable homes that are competitively priced are again seeing multiple offers in several cases, including the upper end of the Santa Barbara real estate market. We are also seeing an increase in investor acquisitions.
 
“Sale Pending” properties compared to those removed from the market which failed to sell: The ratio of homes going into escrow against those that have “failed” (taken off market without selling) is down from 1 in 3 during 2007, to 1 in 1.5. presently. A very positive move.
 
The impact of auction foreclosure or distress related home sales in the Santa Barbara south county area has had little impact because there are so few and what few there are sell within 10% of market value even in distress “fire sale” type situations. The Montecito real estate market saw no foreclosures in 2007.  Santa Barbara had around 40. Over leveraging was difficult to accomplish in the Santa Barabara real estate market place as price points preclude such a practice and act as an effective insulator against much of this type of inventory. Distressed property sales are very low and too insignificant to affect pricing in our local market place.

 As such there is still substantial underlying value in the Santa Barbara, Montecito and Hope Ranch real estate market places. With a  lack of developable land, one of the most desirable climates in the world, natural splendor, great schools, and international appeal, Demand for Santa Barbara real estate will steadily continue as a boomer generation looks for the ideal final property location to spend the balance of their lives in.

The Santa Barbara unique estate and signature property market is one which requires well informed local knowledge that is crucial to successful acquisition and sale of these 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. For exclusive information about privately offered estate properties in the Montecito, Santa Barbara or Hope Ranch Marketplace please direct your inquiries here. 

 

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