Santa Barbara: Real Estate Investing and Market Trends
Santa Barbara has officially moved on from a state of recovery to a period of economic expansion. Consumer confidence continues to creep up, interest rates are still historically low, and unemployment rates are lower now than at the beginning of the recession. The culmination of these indicators, and many more, suggest that the future is bright for the Santa Barbara housing market.
According to data collected by Zillow, the median home value in the Santa Barbara housing market is $1,025,000. The relatively high price point is the result of an 8.1 percent appreciation rate in the last year. While Santa Barbara’s housing statistics are not as gaudy as San Francisco, it is worth noting that Santa Barbara is a luxury market and Experts have reason to believe that prices in the area are going to rise by as much as 4.2 percent in the next year. Those interested in Santa Barbara real estate investing may want to consider jumping in now before prices get too high.
Santa Barbara real estate investing will benefit from one particular area of the market: distressed properties. According to RealtyTrac, the Santa Barbara housing market has approximately 174 homes in some state of foreclosure. That is to say, these properties are either in default, bank-owned, or are going to be up for auction. Each of these scenarios serves as a potential opportunity for investors in the Santa Barbara area.
Those interested in Santa Barbara real estate investing may appreciate the discount distressed properties offer more than their availability. At the moment, non-distressed Santa Barbara real estate is selling for roughly $1,000,000 a home. Distressed properties, on the other hand, have an average sales price of $770,000. That is an average savings of 23 percent, or $230,000 per home.
Of course, if distressed properties aren’t your thing, there is always the high-end market. The Santa Barbara real estate investing community will appreciate that the coastal city ranks in the top 5 U.S. cities for the highest number of active luxury home listings. According to the Miami Herald, Santa Barbara has the fifth highest total of listings priced at $10 million or more. Those ahead of Santa Barbara include: Greenwich, Aspen, Miami Beach and New York. Like most markets in California, especially those on the coast, Santa Barbara has been the beneficiary of high appreciation rates. Just about three years ago, homes in the Santa Barbara housing market were valued around $714,000. Now they are worth more than $1 million, on average.
To discuss Real Estate Investing more, please contact Arthur Kalayjian today!