Last year I predicted a market downturn, but I had no inkling of what was about to happen. By April, sales had fallen by 80 percent from their 2019 levels and Buyers dropped out of nearly 40 percent of their escrows as the lockdown hit. They worried about their jobs, their health, and whether the real estate market would fall 30 percent, like the stock market had just done.
While that seemed possible, the worries about the real estate market turned out to be premature. A two or three percent “virus discount” was all the price drop Sellers were willing to allow.
The damage would have been greater if sales had stayed down. But, after a month of uncertainty, home purchasing picked up in Santa Barbara to the point where the real estate market has completely recovered. The virus discount has been erased and prices have headed even higher.
Was the concentration on “HOME” making people want a new one? Many people took advantage of these past four months to gain clarity about their lives, and a new home was high on their list. This decision was combined with people working remotely, Buyers transplanting from big cities, and interest rates below 3 percent. As a result, Santa Barbara and Santa Ynez have become hot spots in the Real Estate market.
I have met out of town Buyers making all cash offers, using only their cell phones to view the property by video. Just imagine wrapping up an off er by video, then driving or flying to see the home AFTER you’ve opened escrow! My office has completed several sales for these Buyers, and we suspect this new digital way of doing business is going to stay. These out-of-town Buyers are competing with local Buyers, creating an increased Buyer pool. Whether they’re local or from distant cities, the virus environment is making Buyers more focused than I can ever remember. They are serious about buying a home RIGHT NOW!
Mesa Market Report
The Mesa homes I have marketed in the past month each had multiple offers and sold for over the listed price. The market rarely gets hotter than it is at this moment.
Your lifestyle may have changed over the past four months. Perhaps you want to be closer to family or further away! You may be thinking about selling. People want to be near the water,they want the Mesa, and they want a good school. Marine Terrace is HOT right now! There’s a 1951 house in escrow for $1.4 million—3 beds, 1 bath, single-car garage, galvanized pipes, and original kitchen. People will pay for proximity to the ocean and for Washington School.
Perhaps the plans you are making during lockdown include changing homes maybe now is the moment you have been waiting for. Since it is impossible to tell if this hot market will continue, right now it is a wonderful time to sell.
I can help you prepare your home for the market. Call me to find out its current value and what we can do to increase it.
Client Talk…
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