We have arrived! Our area inventory is now down to an 86 day supply with only 594 homes on the market. We are officially in a “Seller’s Market.” In a Seller’s Market prices usually begin rising, market pace is fast and there is low inventory. The Realtors I have spoken with, from San Francisco to San Diego, say that if a property is priced right there will be multiple offers.
I represented a seller on a short sale here in Santa Barbara and in two days we had seven offers. Unfortunately, even at the sale price the property was still short of the seller,s loan amount from the original purchase. But the good news is with a dwindling inventory we should see more pressure on prices to raise.
In Santa Barbara we are now selling about seven homes a day and listing just as many. And 15 percent of those are failing the marketing process. So, even though we are in a seller,s market when a property is not priced right, it may not sell no matter what the inventory looks like.
All in all, this is good news for home owners that are thinking of selling. Since rates are still low, buyers have an advantage and can buy a higher priced home. And, of course, sellers can do the same and get more for the home they are selling.
Broker for Abercrombie Fine Homes Inc.,
Past President to the Santa Barbara Association of Realtors,