Before the election the country usually pauses to take a breath and Santa Barbara area is no different. Even though, sales were brisk and at a rate of 5 a day for the area. Now that the election is over what is going to happen next?
The FED has already raised prime rate causing the mortgage interest rates to rise on average of .375%. That change translates as an increase in payments on $100,000 as a $42.19 monthly increase or an additional $15,188, per life of a 30 year loan. That may not sound like a lot but our mortgages end up being well over $100,000. With a $300,000 mortgage that is an additional additional $45,000 for the life of the loan. Raising rates will affect everyone who wants to sell and those who want to buy. Seller’s can’t sell to buyers who don’t qualify and buyers may not be able to buy if their payments are too high.
The market, since the election has been good, we are selling 4 homes a day and listing 6. If you want a home now is a wonderful time to jump. Homes are selling at 90-95% of list in an average of 73 days from Carpinteria to Goleta. With 546 homes on the market there your opportunity awaits. With the threat of raising rates again next year, now is the best time to buy and sell if you plan on doing it in the next few years.
Broker/Owner, GREEN, CREDS, SRES, Past President SBAOR