2013 began with a flurry of buying activity due to pent up demand and a shift in consumer attitudes towards real estate. This was spurred in part by a surge in real estate investment by larger organizations / institutions. The pace subsided towards the end of the year, though, with a decline in demand and a rise in interest rates.
Over the past year, lower inventory and pent up demand caused home prices to rise — building equity for home owners. Interest rates have also crept up, though, making housing a little less affordable. We believe that real estate remains an attractive option for both buyers AND sellers and that there is no time like the present to “get in” the market. Here’s why:
Why Buy Now
> We are in a seasonally slower selling period where there are historically fewer buyers in the market. Fewer buyers means less competition!
> Home prices have increased over the past year but they are still at 2003/2004 levels (there are still very good values in most areas of Santa Barbara and Montecito). In most cases, owning is more financially advantageous then renting particularly given that we are in a stable to rising market.
> Interest rates are still historically low… BUT… interest rates are expected to rise this year making the home you want less affordable. The implementation of Dodd-Frank (new lending laws) could also make it more difficult to qualify for a home loan. Time is of the essence!
Why Sell Now
> Inventory is low throughout Santa Barbara… this, combined with overall pent-up demand — ESPECIALLY for homes priced $1MM and below — creates an ideal market to sell your home.
> There are typically fewer sellers in the market this time of year (i.e., less competition!)
> Interest rates are still historically low but are expected to rise this year making your home less affordable to buyers. The implementation of Dodd-Frank (new lending laws) could also mean fewer buyers will qualify for the loan they want.
Give us a call or email us to discuss your options!
Maurie@MontecitoLand.com | Scott@MontecitoLand.com
805.403.4313 | 805.403.8816