Houseboat in Santa Barbara
It is here where the anchor drops. A one-of-a-kind masterpiece designed and rebuilt by a father (engineer) and son (carpenter)...
Want a 3% Mortgage Rate?
Would you like a 3% Mortgage Rate? An Assumable Loan might be something to consider. Assumable loans are loans where the buyer takes over the interest rate that the seller currently has if the seller’s lender allows for that. This allows for more affordability and increased opportunities for sellers and is something listing agents should factor into their marketing.
Click Read More below for Video.
Market Trends August 2023
106 Homes sold in August 2023 down from 133 homes sold this time last year. Low inventory continues to drive sales. 40% of homes sold in southern Santa Barbara were “all cash.” Although the market has softened slightly here in September there’s a strong possibility that the market will pick up as we head into October and November.
Click Read More below for more statistics, graphs, charts, and video.
Virtually Unchanged
Buyers and sellers’ sentiments remained virtually unchanged in August 2023 as housing market participants waited for more signals on what the Fed’s next move will be.
With the economy looking stronger than what was anticipated six months ago, interest rates will remain elevated. As costs of borrowing continue to rise consumers might be tapped out. It’s possible that the economy will show signs of slowing later this year, and if that happens, the Central Bank will have no choice but to cut rates starting the first quarter of 2024. Mortgage rates might begin declining in the fourth quarter of this year and possibly improve next year.
The decline is expected, and if that occurs, will most likely be gradual.
Click Read More below for some very insightful videos into the current real estate housing market.
Zillow’s 1% Down Loan Program Will Destroy the Housing Market, or not…
In the movie The Big Short there was a scene in which a stripper bought multiple investment condos. She was able to do so because there were subprime loans available in the early 2000s that required: 1. No Income Verifications, 2. only a 680 credit score 3. No Down Payment: 4. and no owner occupancy.
So Strippers could speculate in investment condos with no income and no money out of pocket – effectively getting free “put” options. If condo prices went up – woohoo! Strippers got rich! If condo prices went down – darn! Strippers walked away and lost very little.
What could go wrong? Well, we know the answer… The economy was a mortgage broker/stripper doom loop. What may be even more amusing is that those strippers were probably making very good money, as the same mortgage brokers who gave them loans were also spending inordinate amounts of time in those same strip bars, tipping strippers with the money they made providing mortgages for strippers.
ZILLOW ANNOUNCES 1% DOWN
Last week Zillow announced its 1% down loan program, and the internet went wild with comments about how this is a return to the worst excesses of the subprime mortgage days. You’d think we are on the verge of mortgage Armageddon. But alas, we’re not because Buyers need to actually verify income with a real job and real tax returns.
Click Read More below for the whole story
What’s Up with Mortgage Rates?
AUGUST 23, 2023 The current average interest rate for the benchmark 30-year fixed mortgage is 7.61%, rising 6 basis points compared to this time last year. If you’re looking to refinance your current loan, the national 30-year refinance interest rate is 7.83%, rising 12 basis points compared to this time last week. With interest rates on the rise, it’s important to shop around for mortgage offers before committing to a loan.
Click Read More below for videos and more Mortgage Rate Information.
How Are Sales?
The Santa Barbara real estate market has enjoyed a historic run in home values over the course of a decade. As a result, real estate in Santa Barbara has become a luxury commodity. However, despite rapid appreciation, demand remains intact and should catalyze activity moving forward. It appears that today’s high prices aren’t enough to scare away buyers.
Click Read More below for sales statistics provided by Fidelity Title Company and a video about Market Trends nationally by Altos Research to give you a more defined overview of market conditions.
Fiesta! Old Spanish Days Returns!
Now in its 99th year, Old Spanish Days in Santa Barbara is a beloved Santa Barbara tradition since 1924 dedicated to honoring and preserving the city’s history, spirit, culture, heritage, and traditions. The annual five-day festival, called “Fiesta” by locals, takes place from August 2nd through the 6th, 2023.
Click Read More below for Video and more information about this year’s poster.
Home Prices
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.
This website is not the official website of Sun Coast Real Estate. Sun Coast Real Estate does not make any representation or warranty regarding any information, including without limitation its accuracy or completeness, contained on this website. Real Agents affiliated with Sun Coast Real Estate are independent contractors and not employees.
3112 State Street, Santa Barbara, California 93105
Mark Lomas BRE 00898298
Kirsten Wolfe BRE 01309570