Economists are now predicting the Santa Barbara Real Estate market will be recovering soon. The Economists state that real estate prices in Santa Barbara will rebound based on pent up buyer demand. The pent up demand comes from lenders who over the past few months have very tight lending standards, and qualification is very difficult. Lenders have been requiring high down payments which many buyers are unable or unwilling to provide. Economists forecast that the lending markets will improve during the final quarter of 2008, and that will make it easier for buyers to purchase real estate in Santa Barbara.
The Economists also showed that Notice of Defaults and Foreclosures in Santa Barbara appear to have peaked or are near their peak signaling that the housing recession is over and selling values are unlikely to decline further. They state that a rapidly declining rate of foreclosure is clearly the sign to buyers that the Santa Barbara real estate market has bottomed.
Real estate is a supply and demand business. As foreclosures are declining, and buyers are scooping up good deals, the number of homes for sale is declining. In terms of newly built homes in Santa Barbara less than 300 homes will be built this year in Santa Barbara. This low number of homes started this year is unprecedented. Over the 50 year record of new homes prouction in Santa Barbara County, the rate of new home construction in the first 7 months of 2008 is the lowest in history!
The growth of the local Santa Barbara economy is still positive. Commercial real estate occupancy rates are still tight and the market is generally healthy. Economists predict job creation and population are expected to increase, which will add to the pent up buyer demand for real estate in Santa Barbara.
For more statistical information on real estate in Santa Barbara, visit us at www.DistinctiveRealEstateOnline.com or contact Wendy Elizabeth Gragg, President, Distinctive Real Estate 805.565.0246.
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