The Santa Barbara Real Estate & Economic Forecast was held this morning at the Fess Parker Doubletree. Here is a synopsis of the presentation:
· A 20% uptick is forecast for Santa Barbara County this year. It should begin no later than the second half of 2008, and probably sooner. This occurs as buyers/borrowers believe a bottom has been reached in mortgage rates and/or home prices and re-enter the market. A recognition by patient home buyers that home prices have bottomed will produce a sense of urgency that is needed to stimulate sales in the housing market. The combination of falling interest rates with lower home prices is bringing buyers back into the market.
· Santa Barbara has weathered the “housing crisis” much better than most of the U.S. and considerably better than many areas of California as well. Santa Barbara’s quality of life coupled with its limited inventory are the predominant reasons.
· Montecito and Hope Ranch continue to show the greatest strength. Demand remains strong for high-end Estate properties where many buyers pay all cash and are not affected by the current disruption in the mortgage sector.
· Builders have stopped building which puts pressure on the available inventory. Many residential projects were delayed in 2007 and developers are hesitant to begin new construction in 2008.
Feel free to contact Wendy Elizabeth Gragg at 805.565.0246 or WGragg@DistinctiveRealEstateOnline.com with any question or for more detailed analysis. You can also visit www.DistinctiveRealEstateOnline.com