A Down Market you say? A recent CNN article confirms that falling real estate markets are still running their course.
Contrary to national headlines there are cities and communities flourishing in this so called “down” real estate market. Perspective is an interesting thing – it shifts - and from where you stand, the information just might lean in your favor. In a perfect storm a set of disparate events combine to create an exceptionally powerful phenomenon with great impact or influence. It is at just such a time that ones individual perspective is most important. A perspective from within the storm calls for specific response, while a perspective from outside the storm calls for an often entirely different course of action.
Despite the general trend across the country, real estate values in Montecito and Hope Ranch California have continued to rise since the beginning of the year. Both areas are experiencing double digit increases with Montecito values up almost 25% and Hope Ranch up 10% thus far in 2008. If you are considering buying or selling in the Santa Barbara area and you are relying on the national news for real estate updates, I think it is time to shift away from that broad general perspective and zone in on a local perspective that is truly relevant to your personal real estate needs. Yes, the general perspective countrywide is that of a “down” market, however, Santa Barbara is not in the eye of the storm.
Indeed, there is another set of events which make this a fantastic time in real estate. Yes, our community does have its share of foreclosures and REO’s. If you are looking to get into one of the most beautiful communities in the world it just might behoove you to act with haste. However, interest rates are still incredibly low (jumbo loans in the low to mid 6% range) and there is an abundance of inventory with over 600 homes on the market between Carpinteria and Goleta. Those familiar with the “ins” and “outs” of real estate in Santa Barbara County might actually call this a buyers market. This kind of talk has not been on the lips of real estate agents since the late 1980s.
History loves to repeat itself and the buyers that take advantage of the market today are going to be those who will talk about the bargains they were able to find in Santa Barbara, Montecito, and Hope Ranch in 2008. I promise you, it won’t last forever.
If your future investments include a plan for purchasing real estate in Southern Santa Barbara County history tells the story of economic regression followed by recovery and increased market values.
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