“Do you think it is a good time to buy right now?” I frequently hear this question. The stock market fell, Cryptocurrencies fell, and interest rates are on the rise. Even if your intuitive antenna insists that times must begetting worse, can you be sure that a dropping real estate market is heading to Montecito?
Are you hoping for a bubble? It is easy to assume that rising prices must be ready to fall. The “what goes up…” theory applies to gravity, but does it apply to real estate?
You may think that it is best to wait for a deal, but the truth is that real estate might not ever come back down. The whole concept of “home” and “housing” has changed since COVID. Home is more important than ever, and buyers continue to prove that with lots of cash and multiple offers. Montecito has 31 listings, compared to 170 two years ago.
When an already strong market is being pushed along by inflation it is likely to keep moving in this direction for years. One third of South Coast sales are bought with all cash, which provides a great source of stability for our Market. This is even more true in the Luxury Market; with half of the Montecito and Hope Ranch sales paid for with all cash. The concentration of wealth in our community helps other wealthy buyers to be confident in the quality location of their purchases, and this helps insulate our market from price swings.
COVID has shown us “home” is the most important thing in our lives and Santa Barbara is the place where people want to have one! The decoupling of home from work has become a fixture of life. We probably will not return to a pre – COVID work – world.
Montecito Market Report
For people who already own a home, all this hardly matters. Yet, the squeeze is on for anyone hoping to get into our market. Years ago, I had clients who gave up buying their first home – entry level Santa Barbara – for $380,000. Such houses are now worth about $1.8M. They found it “punishingly expensive,” yet, the regret of not buying still haunts them. That could be all the motivation a buyer needs to keep making offers. If you are waiting for the market to decline, you will likely be left out and left behind. If you expect to live here for the next 10 years, it’s time to step up your game. Although the rising market may seem crazy and scary, the sooner you buy, the better the deal you will get. A year from now, you will have been a savvy buyer, instead of being priced out of the market.
My website brings clients from all over California and the US wanting a home here. We are constantly in multiple offers as the forces of supply and demand play out in the marketplace. Getting to live in Montecito is the real reward.
These are times to keep your hands firmly wrapped around your dreams. You need the skills of adjusting to market conditions, improvising to get offers accepted, pivoting to new methods, and playing full out financially. I help provide the skills of adjusting, pivoting, and the extra effort needed in a market like this. Please feel free to call me to discuss your unique situation.
Client Talk…
The data relating to real estate for sale on this web site comes from the Internet Data Exchange Program of the Santa Barbara Multiple Listing Service. Real estate listings held by brokerage firms other than the displaying broker(s) are marked with the ‘MLS’ logo and detailed information about them includes the name of the listing brokers. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor displaying broker shall be responsible for any typographical errors, misinformation, or misprints. 2021 Santa Barbara Multiple Listing Service. All rights reserved.
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