First the Bad News: There are new economic programs in the works that could affect how we pay for all the economic changes from this past year. Although these programs will goose the economy, the means to pay for them will affect many people in Montecito because housing values have increased so much.
If you missed it, here is what is under discussion:
- Higher capital gains taxes.
- Reduction of benefits, such as a step up in tax basis for a property inheritance upon the death of a family member.
- Curtailing 1031 exchanges.
- Increased estate taxes.
- Higher tax rates for higher earners.
Any, or some combination of these, could pass. Although not yet enacted, these changes, or something similar, are likely
There is still Good News: Montecito Real Estate Market remains in motion until something stops it. Changes are coming but there is still time to sell in this crazy wonderful market before the tax gurus slow this train down.
In the last 30 days, 29 Montecito homes sold. There are currently 43 more in escrow. Only 35 homes are presently available for sale; normally there are 100 available. Lately, approximately 30 homes come on the market every month and there are approximately 30 sales per month. More than half of the closed escrows were on the market for 17 days or less. Half of the 29 sales closed at full price or above. The price received by Sellers was 95.5% of their original asking price. A year ago Sellers received 81.8% of asking.
There were 53 sales in Montecito in 2020 in the first four months, and this year there have been 115. The median price increased from $2.8M to $4.8M – a 70 percent increase. The sale of a greater number of more expensive homes has boosted the statistics. The real increase for most Montecito home owners is about 35%. From January to April 2020, 10 homes sold for over $5M. This year during the same period, 56 homes sold for over $5M. Still, 35 percent is amazing – the highest in my 43 years of selling Montecito homes.
Montecito Market Report
The California Association of Realtors will soon release recommendations for resuming open houses, probably within weeks. Although this will push more people to look at and buy homes, we have all been warned that tax policy out of Washington can impact the wild party sellers have been enjoying.
What Does That Mean to You?
Don’t become complacent. Decide what you want and go for it. This rocket market will not continue forever. If you want to sell during this frenzied time, be planning your move right now. I’m here to help you know what will work best for you.
How Saleable is Your Home?
Download my FREE e-booklet “Is My Home Saleable Now?” from my website, www.ScottWilliams.com or call me and I will send you a copy. This useful guide will help you maximize your selling opportunity while this market is still hot.
Client Talk…
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