Santa Barbara South Coast Year End Update 2020
Happy New Year… Sure, it’s no longer the first week of January but here at Spechler and Beck Real Estate Group, we are feeling ALL THINGS NEW! There is a NEW president, there is a NEW vaccine, and to our delight, we are seeing NEW listings pop up! We don’t really know anyone who truly hit the ground running this year, so if you’re still getting your bearings, you’re not alone. But like most people we know in week 3 of January, we’re starting to see some great strides forward. We’ve already closed 5 real estate transactions for our clients and we’re looking enthusiastically at the year.
So, what do we think is in store for real estate in 2021? According to economists, they’re predicting a strong overall economy. There may be a bumpy start as we make our way through peak COVID cases and a slow vaccine roll-out, but in their opinions, health crisis aside, there isn’t anything systematically wrong with the economy. Those fearing mass foreclosures need not necessarily worry as none of the indicators pointing to a market crash like 2008-2009 exist. Only a small percentage of those who filed for forbearance (a delay on making their mortgage payments due to COVID) actually had to use it and most are up to date on making their payments. In fact, 38% of homeowners own their homes outright and 75% of homeowners have more than 10% equity allowing them to sell their homes without having a short sale or foreclosure on their hands. Here in Santa Barbara, prices (without Hope Ranch and Montecito) went up approximately 10% in just 2020 alone!
What is driving prices nationally as well as in Santa Barbara? For one, interest rates. Historically low interest rates, actually. Right now rates for a 30 year fixed mortgage are hovering around 2.75-3%. Another driver is COVID, allowing more people to work remotely from wherever they’d like (ahem, the beach). And beginning April 1st, Prop 19 will allow certain homeowners the ability to move and bring with them their property tax base. This will not only loosen up some inventory in Santa Barbara as people move to be near family or to other climates, but will bring new buyers to our area who were prohibited by a costly new tax base.
Bottom line is this: it’s a GREAT time to sell if you know where you’re going! Something stopping many sellers is the ability to find their replacement property, but we work with the best lenders in the business who can help bridge the gap with creative financing. So if that’s something you’d like to discuss, let’s open up the conversation and knock down the hurdles to reach your real estate goals! We are always here for you so don’t hesitate to reach out! We look forward to it!
|HOMES & PUDS|
|Median Sales Price||$1,275,000||$1,152,024||$1,220,000||+10.7%|
|Median Sales Price||$737,000||$669,180||$650,000||+10.1%|