Market Update
The California real estate market has shown signs of recovery in May, with home sales reaching the highest level in eight months and the median home price surpassing $800,000 for the second consecutive month. The market is demonstrating resilience and stability.
The Santa Barbara real estate market remains strong while interest rates hovers around 7%. On July 16, 2023, the current average interest rate for a 30-year mortgage was 7.14%. Source: Bankrate
All Cash purchases have picked up since last year here in Santa Barbara. All Cash sales for June of 2022 were 28%. This year for June was 40%, which may reflect the dramatic hike in interest rates this year.
Click Read More below for graphs, charts, and video.
The State of Mortgage Rates and Decoding the Real Estate Market
The average rate on the popular 30-year fixed mortgage hit 7.22% on Thursday, according to Mortgage News Daily. That’s the highest point since early November.
For a homebuyer taking out a $400,000 mortgage, the monthly payment of principal and interest rose to $2,720 from $2,637 in just one week.
For sellers, higher mortgage rates have created a so-called golden handcuff effect. The vast majority of homeowners today have mortgages with interest rates below 4% or even below 3%.
“Recent data indicated that nearly 82% of home shoppers reported feeling locked-in by their existing low-rate mortgage, while around 1 in 7 homeowners without a selling plan cited their current low rate as their reason for remaining on the sidelines,” said Jiayi Xu, an economist at Realtor.com.
Because of that, there is currently a critical shortage of homes for sale, with year-to-date new listings now 20% behind last year’s pace.
Click Read More Below for the entire post and GMA video on Mortgage Rates and Decoding the Real Estate market. (7.7.2023) Image from the World Property Journal
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All Eyes On Home Prices
Even though the summer homebuying season is officially here, the housing market is still experiencing a winter chill.
The national average 30-year fixed mortgage rate remains elevated compared to last year, hitting a year-to-date high of 6.79% the week ending June 1, according to Freddie Mac.
Though the median existing-home sales price edged lower year-over-year for the fourth consecutive month—a promising sign for home shoppers—experts don’t expect substantial, nationwide price declines anytime soon.
Click Read more below for the entire post and videos.
Mortgage Rates & the Housing Market
We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008. We may be in one of the strongest Real Estate Markets in a long time. When you look at the numbers today, the one thing that stands out is the strength of this housing market.
Here are two fundamentals that prove this point. Click “Read More” below to continue reading.
Market Update
The Santa Barbara housing market is very competitive. Homes in Santa Barbara receive 4 offers on average and sell in around 31 days. The median sale price of a home in Santa Barbara was $1.5M last month, down 17.0% since last year. The median sale price per square foot in Santa Barbara is $1.24K, up 5.3% since last year.
Click Read More below for Charts, Graphs, and more Statistical Data
Tom Cruise has a Real Estate License?!
Spring Demand Reheating Real Estate Market
If the supply of housing is constrained and unable to keep pace with rising demand, prices tend to increase. This scarcity can create a sense of urgency among potential buyers, who may be willing to pay higher prices to secure a property before it becomes even more expensive. This increased demand due to limited supply can further drive up prices.
Click Read More below for Santa Barbara real estate Market Trends, recent Sales data, and Videos.
Real Estate Headlines
Why Real Estate News Is So Important
Economic indicator: Real estate news is often used as an economic indicator, as the real estate market is closely tied to the overall health of the economy. When the real estate market is doing well, it can be a sign that the economy is strong and growing.
Investment opportunities: Real estate news can also provide valuable information for investors looking to buy or sell properties. News about market trends, interest rates, and other economic factors can help investors make informed decisions about their investments.
Housing market trends: Real estate news can also provide insight into housing market trends, including changes in supply and demand, fluctuations in housing prices, and shifts in consumer preferences. This information can be useful for homebuyers, sellers, and renters looking to make decisions about where to live and how much to pay for housing.
Legal and regulatory changes: Real estate news can also alert people to changes in laws and regulations that may impact the real estate market. For example, news about changes in zoning laws, tax policies, or environmental regulations can all affect the real estate market in significant ways.
Overall, real estate news is important because it provides valuable information about the state of the economy, investment opportunities, housing market trends, and legal and regulatory changes that may impact the real estate market.
Click “Read More” below for the latest Real Estate News and Videos
Selling? It May Be The Perfect Time!
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3112 State Street, Santa Barbara, California 93105
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