For decades Santa Barbara and Montecito home prices lagged behind many communities closer to Los Angeles, because we were“so far away.” Now that the new rules of work have increased people’s desire to live here. Our homes were bargain priced compared to what you could get elsewhere. With so many people wanting to move here,prices have aggressively increased. Newcomers saw that local prices were low compared to what they were used to, so they bid them up. C’est la vie!
Why Real Estate Will Continue to Thrive in Santa Barbara
The wealthy people attracted to our community help to insulate the town from the economic ups and downs that affect other communities. 50 percent of Montecito homes are purchased for cash, and 30 to 40 percent of homes in other neighborhoods are also purchased for cash. That stability allows us to weather economic uncertainties.We are near the top of the economic pecking order.
Last year Montecito ranked #7*in the ranking of the top 100 most expensive zip codes in the US, with a $4.1M median price. The Mesa was #81, the highest zip code in Santa Barbara City, with a $1.8M median price. Homes selling above $3M have increased to 30 percent of Mesa sales.
When looking over the top 100 US locations, what stands out for me is how far from “the city” Santa Barbara and Montecito are. Most expensive zip codes are inside huge cities, or firmly in their suburban commute zones. What attracts people to Santa Barbara is not its proximity to a city but its diverse living choices.
Montecito Market Report
Free to You and Me
Santa Barbara real estate is likely to do fine, no matter what is happening in the economy, because of our extremely high quality of life.
Fortunately, not everything is expensive. We have some of the best beaches in California, parks galore, great hiking, miles of bike paths, great cultural events, parades, music in the park, Farmers’ Markets, and First Thursdays. I’ll bet you could come up with 20 more free items to enjoy.
The good news is that when you purchase a home in the Santa Barbara area, the odds are good that the price will consistently increase and rarely go down. The many factors that make this a great place to live also make it more immune to the economic downturns that affect other markets.
Because of our enormous diversity of employment, universities, think tanks, and start-ups, Santa Barbara is unlikely to suffer unduly, even in a major economic downturn. Our location on the coast and wonderful climate continue to exert a strong pull for people to locate here. The next decades will well reward those who purchase property here.
This is a good time and the right place to buy; let me know how I can help.
Client Talk…
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