Santa Barbara South Coast Third Quarter Update 2020
Happy Fall ya’ll! There is SO much to talk about and buyers and sellers are talking about the election and how that will affect the real estate market. We have some thoughts about that.
Whether or not you are ready for the 2020 presidential election, it is just around the corner and the understatement of the century is that this year is unlike any other year and so is the election! Typically, we see a slowdown towards late fall into winter. With COVID in the mix what is likely to happen?
In March we pretty much shut down but then when Real Estate became essential the market just took off and we haven’t had a minute to look back! Sales are WAY up, interest rates are way down, and inventory is anemic here in Santa Barbara which makes it a GREAT seller’s market.
According to Meyers Research, a leading real estate research firm, the year following an election can be the best of the presidential four year term for home sales. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as the economy stays on track.
Low mortgage rates have continued to drive once-in-a-lifetime affordability for homeowners. Today jumbo rates are 2.875%, conforming rates (up to $625,500) are 2.75% and 15 year loans are $2.125%! These rates have pushed demand off the charts which has shrunk our inventory to an all-time low. Today we have only 8 homes for sale under $1,000,000 from Carpinteria to Goleta and only 21 homes available from $1,000,000 to $1,500,000. You can guess that multiple offers are routine now. Did you see our blog about the home on the Riviera that was listed for $1,995,000 (very dated) and sold for $1,000,000 over asking?! This gap is not common, but it shows the hysteria that can happen with tight inventory.
We are always here for your real estate questions and needs and we LOVE to talk about the market so don’t hesitate to get in touch.
On a side note the photo used this month is Karen back up on the John Muir Trail this last summer overlooking Marie Lake at the top of Sheldon Pass. She is always happy to talk about her hiking adventures as well!
P.S. If you missed our Virtual Seller Strategy Session discussing how to maximize your equity for your next move, give us a holler and we’ll send you a copy of the recording!
| HOMES & PUDS | ||||
|---|---|---|---|---|
| 2020 | 2019 | 2018 | DIFF% | |
| Active Listings | 1,247 | 1,364 | 1,300 | -8.6% |
| Total Sales | 906 | 869 | 817 | +4.3% |
| Median Sales Price | $1,490,800 | $1,288,250 | $1,249,000 | +15.7% |
| CONDOMINIUMS | ||||
|---|---|---|---|---|
| 2020 | 2019 | 2018 | DIFF% | |
| Active Listings | 434 | 452 | 491 | -4% |
| Total Sales | 318 | 323 | 346 | -1.5% |
| Median Sales Price | $712,500 | $658,000 | $650,000 | +8.3% |
