NEWS

This month we are going to keep it brief with a simple thought. With the rising of interest rates, many people question how this will impact real estate. At the moment, it appears it’s helping spur more activity. Why?  When the population at large believe rates are rising, the psychology is we better buy now before rates go higher.  Ironically mortgage rates have fallen to their lowest point in 2017 the past few days. Geo-political news and sub-par economic performance have pushed rates back down.

OUR LOCAL MARKET

Our market remains active, but at the moment it seems more challenging to find the right home at the right price for buyers. The challenge lies in the selection of homes on the market. To start with there is a limited supply of available homes across our market. Those that are appropriately priced based on recent comparable sales, condition, and location are seeing multiple offers, but those that are over priced, buyers are willing to ignore.

A statistic that jumped out in the March 2017 numbers, total homes in escrow (sales pending) dropped by 18% compared to March 2016. As we look at it a little closer, total sales pending for the first quarter of 2017 are tracking very closely with the first quarter of 2016. Months can vary, so we are interested to see how this trend plays-out into April and in subsequent months.

For the first quarter, the higher end  market experienced a slow down in total sales. Looking at both Montecito and sales above $5M as indicators, sales are down by approximately 35% and 37% compared to the same time frame last year.  The only divergence in this category is Hope Ranch, which has 9 sales for the quarter compared to 4 in 2016.  Interestingly Hope Ranch has 30 active listings at the moment – that’s a lot!

MARCH MARKET HIGHLIGHTS

March ’17 Highest Sale
3319 Padaro Lane
3 BD / 3.5 BA / $12.750.000

March ’17 Lowest Sale
930 E De La Guerra St
2 BD / 1 BA / $625.000

RECENTLY LISTED

1220 Franciscan Ct #2
Franciscan Village Carpinteria
2 BD / 1 BA / $489.000

6180 Via Real 107
Vista De Santa Barbara
2 BD / 2 BA / $275.000