Although we may be sick of COVID, it is not sick of us. About 100,000 Americans a day are still becoming infected. We are entering a time when fewer people will die from COVID, but that does not mean we are going back to the way life was.
Here are some changes that will continue to affect the ways we live in Santa Barbara:
- Many people will still suffer greatly from getting COVID (elderly, immune compromised, etc.) Stuck at home, possibly for years to come, these people’s lives will continue to be restricted.
- More Wealth than ever is flowing into the community. 50 percent of Montecito homes are purchased with all cash at an average price of $7.7 M.
- Payments to the state from wealthy Californians’Income tax have created a surplus. Most of the $97 billion must go to pre – chosen segments, such as education or first responders.
- 4. 36 percent of workers are expected to work from home at least 1-2 days per week for the next 3 years. This will alter the way we think of working for everyone.
- Rental costs have skyrocketed. Governments (including nearby cities) are initiating stronger rent controls, including regulating evictions and rent increases, as well as strengthening measures to increase housing stock. This may impact you if you already have or wish to invest in local rental real estate.
- Businesses must factor in how their employees are coping with these higher rents and commuting longer distances.
- Employers, especially in hospitality and the service industry, are finding it harder to hire sufficient employees.
- The downtown has transformed. Restaurant Parklets are here to stay along the 9 closed blocks of State St. Most people approve of the new pedestrian friendly downtown.
- Tourism is back and large numbers of people are vacationing locally. Cruise liners are stopping here, Airline flights are mostly full, and more airlines than ever are serving SBA. Local hotel occupancy is running 80 percent and increasing.
Montecito Market Report
The last two years have produced a lot of real estate wealth for homeowners. This can make a very positive future for people who currently own real estate. The median priced Montecito home increased $1,850,000 in the past two years.
Rising Interest Rates are Slowing the Market
For months we have been expecting the market to slowdown, and interest rates have been pushed up into the 5’s and even over 6 percent for some borrowers. We are starting to feel the effects of this as fewer homes are selling and the rising prices are slowing. Although it is still difficult to predict the arc of this market, there are more buyers than sellers. If you were waiting for the top of the market before selling, we have arrived. Call me if you wish to discuss your situation.
Client Talk…
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