If you are anticipating a move in the next year now might be the best time to market your property. Properties that stay on the market longer than the average number of days causes the seller to lose money, it is important to price their property properly at the time of marketing. In 2017, our local market from Carpinteria to Goleta appreciated over 7%. This marks the sixth year of appreciation, putting our area back in a normal market. We are no longer recovering from the housing bubble.
The state’s housing inventory is down to a three months supply, which is the beginning of a seller’s market. California is creating more households and less housing units, insuring this market will continue, if affordability remains constant. The Santa Barbara area is in a Seller’s Market also. We need inventory to satisfy the demand. As interest rates rise, and the FED anticipates at lease three increases throughout the year, the affordability will drop. In California, only 26% of the population can currently afford to purchase property. That figure comes to us when interest rates are in the 4 percent range. When rates rise the number of qualified buyers will decrease.
As rates rise, there will be fewer buyers who are able to afford the market. Did you know if rates rise from today’s 4% range rise to a 7% range, the payment on a a $750,000 purchase goes up 39%? That is a significant increase for buyers to absorb. Some simply will not qualify. With fewer buyers, marketing times may increase significantly.
To me, it looks like now is the right time to sell if you anticipate a move coming in the next few months or years.