In spite of this being an election year which may change things or may not, the past year shows our local Santa Barbara market held steady with a slight increase in values.
Many of the buyers in the luxury market are requesting smaller dwellings. The mammoth homes built in the early 2000’s have become passe. Those who are buying their fourth or fifth home can afford to wait for what they want, so they do. However, in January, sales in this segment of the market were swift and it shows signs of continuing.
In the more affordable properties, up to $3 million, the same swift market was evident from January into February. Who knew we would consider affordable up to $3 million? Prices in this segment of the market rose 4.62% last year.
With the daily rising cost of materials, the existing housing stock is more appealing than building from scratch. This keeps our market strong and the future is indicating long-term home ownership. A slow growing market is a healthy market, so “buy and hold” properties are the trend in this market. A smart flipper is staying out of the market at this time.
If you have more questions call me.