Mortgage rates have fallen for nine consecutive weeks and are expected to drop further although many think it’s unlikely that rates will drop below 6%. It appears optimism is on the rise for 2024.

The Federal Reserve’s campaign to lower inflation through rate hikes had a significant impact on the housing market. Now that inflation is easing, and interest rates are falling, it’s likely buyers who have been sitting on the sidelines might get back in the game.

The big question for 2024 is will there be a notable increase in inventory? The general consensus among real estate professionals is optimistic as you’ll see in the video included in this post. All expectations are for an increase in inventory. But, truthfully, only time will tell. All indicators at this stage look good without any significant unforeseen disruptions.

Santa Barbara Real Estate Market Trends for Homes Sold per Month from 2018 to 12.31. 2023

Altos Research video suggests that the 2024 spring real estate market will surprise you…

Santa Barbara Single Family Detached Home Sales for December 2023 source: SBAOR

Santa Barbara Condominiums, Townhomes, and PUD December 2023 sales Source SBAOR