Santa Barbara Real Estate Trends: 3 Ways Buyers Have the Advantage

2010 will be known as the beginning of the recovering economy and new markets in real estate. During these uncertain times, we still wonder: have the economy and real estate market finally hit bottom?

One thing is for certain - new opportunities abound in buying Santa Barbara real estate and investment property. Santa Barbara real estate trends will inevitably dip to their lowest, but so will interest rates for home loans. This is the perfect time to get involved with the Santa Barbara real estate market.

Living through these times is challenging, but we will all have a story to tell about what it was like to live through a very difficult period and come out the other side. Your story about surviving the big recession could be as transformative as the new economy if you take the opportunity to invest in income property, find your new home, or refinance your mortgage.

Think of the bragging rights you’ll have years from now if you take advantage of the current Santa Barbara real estate market conditions:

1. Refinance your existing mortgage. Current interest rates are below historic lows.
   
2. Purchase real estate NOW! Elevated inventories and seller motivation are at all time highs.
   
3. Invest in income property. In 25 years of selling property in the area we have never seen the affordability this attractive. This is by far one of the best ways to provide passive income to your retirement portfolio.

You can listen to the talking heads and watch the news religiously; they all have their slant (or their major stock holders' slant) on what the future will bring. In the end, slow and steady confidence in the financial sector and diligent planning from the business leaders will bring the country and world back to profitable times.

By purchasing property now, you become the driving force behind the upward trend in your own Santa Barbara real estate investment.

Craft your success story of investing in Santa Barbara real estate and property today by contacting Santa Barbara Realtor John Sener. In 24 years of listing and selling properties in Santa Barbara and Montecito, John Sener has built a superb team of marketing specialists, contractors, service people and consultants to help you in every aspect of your real estate needs. John Sener and his remarkable team will help you plan your pathway to Santa Barbara real estate buying, selling, or investment. Contact John at (805) 331-7402 or visit JohnSener.com.

What's Driving Current Santa Barbara Real Estate Trends?

When the Association of Realtors held its economic forecast for 2010 in southern Santa Barbara county, Santa Barbara real estate trends post-recession were a hot topic. It’s a fact that property values have declined since pre-recession days, but Santa Barbara property sales are 25 percent better than the bottom of the market in January 2009. While our region reflects the same general real estate trends as the rest of the country, the Santa Barbara real estate market is coming out strong.

Billionaire Warren Buffett appeared on CNBC in March and had these comments about the national economy: "the worst is behind us"; "things are getting better but at a very slow rate,” and; " the jobs will come back but it won't be fast". The rest of the country is starting to feel the effects of the recovery. It’s not the same economy as before we started, but we are coming out of one of the biggest recessions in the history of the United States.

What effect does this have on local Santa Barbara real estate trends?

It’s a buyer’s market in Santa Barbara. The strong appeal of Montecito and Santa Barbara neighborhoods, from good school districts to exclusive private living in paradise, is translating to more real estate and investment property sales in Santa Barbara. We are hovering well above the rock bottom of last year - and climbing. Current MLS statistics show that we are averaging between 20 and 30 pending sales a week.

A closer look shows that a majority of the sales are in the conforming sales market. What does that mean? Conforming loan sales are purchases with loan amounts under $729,000. This translates into a majority of our transactions coming in under $900,000.

What is driving all the activity in this market? In pre-recession days, the medium house price on the South Coast was over $900,000. Today that number is $760,000. Home loan interest rates are at historic lows, and attractive government tax credits (soon to expire!) are strong incentive for first time home buyers (who make up 47% of buyers) and young families to take a foothold in the Santa Barbara real estate market.

Santa Barbara, Hope Ranch, and Montecito estates and high end home sales over $1,000,000 have also increased over the past six months. Just like the Beatles song says, they're “getting better all the time." This premier property market offers the most opportunity for buyers today - whether you’re looking for a new luxury Santa Barbara home or investment property. Inventories are high and sellers are competing for a limited number of buyers, making this by far a buyer’s best opportunity to buy Santa Barbara real estate that was priced 25-35% higher in value just two yeas ago.

This newly recovering market is your chance to buy Santa Barbara property that is both a great value and a once-in-a-generation investment opportunity.


It is vital to have a qualified team of professionals at your service to purchase and sell your home - and especially to navigate a major estate property transaction. In 24 years of listing and selling properties on the South Coast, John Sener has built a superb team of marketing specialists, contractors, service people and consultants to help you in every aspect of your real estate needs. Santa Barbara Realtor John Sener and his remarkable team will help you plan your pathway to Santa Barbara real estate or property investment. Contact John at (805) 331-7402 or visit JohnSener.com.

FEDERAL STIMULUS WILL HELP HOMEOWNERS

Despite all the controversy around the economic stimulus package, the intention of any stimulus is be a catalyst-influencing something else to happen. Creating movement in these ever changing economic times is essential and will present excellent opportunities for homeowners.

One available option right now, and well worth the time and expense, is to re-finance your current First Trust Deed. With conforming loans increasing to $729,000, now is the best time in years to lock in a fixed rate on your home. These new 30 year loans come with fixed rates in the low 5 percent range. Looking at your current mortgage, is it over 6 percent? Are you currently in an adjustable rate mortgage? If the answer to either of these questions is yes, it is time to think about re-financing your home. Even if you have done so in the last few years, the savings on the interest rate will cover the costs of the new loan in a matter of a few months. If you have any questions about your current mortgage, or want to know more about the new conforming loans, call me! I can help you get all the right information that will save you thousands of dollars a year.

Current market conditions allow homeowners to reduce their property taxes!

Lately, the news for homeowners has been all about lost values. Here is a way to take advantage of this situation and put cash back into your household. With property values declining, you as a home owner are allowed to take advantage of this decrease in value by re-assessing your property at today's values, thereby reducing your property tax liability.

If you purchased your home in the last 5 years, chances are the current value may be less than what you paid for the property. In many cases, the new assessed value could now be thousands less than the original purchase price. With my help, the process is easy. Many of my friends and clients have received letters in the mail and others have downloaded information from independent companies that charge up to $500 to process these documents but together we can get this done for little or no cost to you. Stop paying higher property taxes today. I'm here to answer any questions you may have about this legal and easy way to reduce your current property tax bill.
Together, we can put you back in control, and remember, be the change you wish to see.

Always at your service, with the guiding hand of optimism,


John