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2014 Real Estate Market Update

2014 Real Estate Market Update

Santa Barbara real estate has been a much sought-after market for awhile now. And reasonably so, with the coastal views and local feel. It’s the right place to start a career, start a family, or start that well-deserved retirement lifestyle. With the right help, navigating this market is not nearly as tricky.

Some of the basics:

Historically, summertime is the slower season for Santa Barbara real estate inventory and its surrounding areas. In the last couple years the average price for houses has gone up, but that trend is still very much in line with the recovering housing market. As usual, expect areas like Hope Ranch and Montecito to fetch higher prices, but if you’re on more of a budget Santa Barbara city and nearby Goleta bring in more area sales at much more affordable prices.

To give a more focused scope on the market let’s break down each price range in terms of sale percentages:

Sold Price      % of Sales 2013        % of Sales 2014

Under $1M                 55%                             46%
$1M – $2M                 29%                             32%
$2M – $4M                 12%                             15%
Over $4M                     4%                               7%

 

What this means: Inventory in the lower end market is diminishing slightly as of late, but that again is all in line with previous trends during healthy market periods.

Be mindful of inventory. Looking at how long it would take to sell all existing inventory if no new properties were put on the market, I call this months of inventory. For example, in higher end markets like Montecito, the months of inventory is higher since these properties take a little longer to find the right buyer. These niches average five to nine months. But other areas like Goleta and Santa Barbara city range much lower, around 2 months to sell. This is merely an indicator of time for those potentially looking to sell in today’s market. Because time is valuable, and we want you to know what to expect.

As 2014 rounds into its second half, the availability of properties under $1M are thinning out. If Santa Barbara is the location you’ve always wanted, don’t hesitate! Village Properties Realtors® have a stronghold in the region, with an outreach that can cater to your vision and your budget. So take a deep breath. Finding your new place isn’t going as crazy as it seems. We’ve got your back when you’re ready to make that next big move.