December 2012

Found 2 blog entries for December 2012.

Another year has gone by and now is the time that many people reflect and look forward. We’ve seen a lot of changes take place in the Santa Barbara area real estate market this year. Lower inventory, historically low interest rates, and a large increase in number of sales are items that have headlined the most.

By reflecting on Santa Barbara’s numbers we can see what’s moving and look forward to where the market may be headed. Months of inventory is a great indicator and shows a lot of variance depending on the price range you look at. The number, also known as absorption rate or market velocity, is calculated by dividing the number of homes currently available by the number of homes that have gone under contract over the past month. In Santa Barbara

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Last week the Wall Street Journal published an article which talks about the 5 reasons home prices have been rising. Click here for the article.

1)  Housing affordability is attractive:  With interest rates at historically low levels and house prices significantly down the monthly payment of a mortgage is looking very appealing to buyers. In fact, the monthly payment on a median priced home in Santa Barbara is now less than half of what it was in 2005!

2)  Household formation is revving up:  Economists from Bank of America indicate that the U.S. is on track to add 1 million new households this year, up from 630,000 last year.

3)  Rents are rising:  This has prompted more investors to purchase properties to rent out and has more recently given buyers a

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