Here on the South Coast of Santa Barbara County of the loans closed year to date: 85% were conforming or under $625,500; Jumbo loans made up 6.6% of the market; FHA 7% and last but not least VA with 1.2% of the market.
Given the fact that the low end, up to now, has been the fastest paced portion of the market it makes sense that lower conventional loans would make up the majority of the market. However, with 24% of purchases nationally being made with All Cash, the jumbo loan business has not been that robust. We have had our share of “All Cash” transactions in every price range.
The April MLS numbers for Santa Barbara Multiple Listing Service shows all segments of our market from Carpinteria to Goleta with an increase in sales. Across the board sales have picked up. We are selling 7 homes a day leaving us a 2.8 months supply of homes. Will we see this trend continue? I believe we will. Summer is usually a wonderful time for families to choose a larger home before school starts and if they are going to move that is when it happens.
The low interest rates are helping our local residents get the house they need and still at the price they can afford.
Broker for Abercrombie Fine Homes Inc.,
Past President to the Santa Barbara Association of Realtors