The Perception of the Real Estate Market in Santa Barbara

What’s the weather like? A good question, but it also depends on where you are at the time. In the past week, we have seen flooding in the Northwest, blizzards on the East Coast, a drought in Georgia and a portion of the South, hot weather in the Southwest and mixed weather right here in Santa Barbara. The real estate market is just like the weather. It depends on where you are, but listening to the news media, it seems as though real estate is on its last leg. I am convinced that instead of reporting the news, the news media creates the news and shapes what we are supposed to think. The perception out there is that the entire housing market is crumbling, but that is simply not true. Real estate is local and what is happening in the Santa Barbara and surrounding areas is completely different than in many areas of California.

When I hear about the real estate market, I think of real estate from Carpinteria to Santa Barbara to the Santa Ynez Valley, as this is where my expertise is. And yes, the market may be slower than we would like it to be, but as of this date, more homes and condos have sold in 2007 than in 2006. When you compare it to so many other places in California or other areas of the United States, we are doing okay. In fact, in both Montecito and Hope Ranch, property values have increased at least 10% since last year. Santa Barbara is an incredible place to live with our climate, location, schools, and cultural activities, and these are reasons why people seek this lifestyle.

Bottom line, real estate is a long term investment. If you are thinking of just owning your home for 1-2 or even 3 years, maybe this isn’t the time to buy, but if you are like most people who are looking long term, then this is the best time to buy. Interest rates are competitive and prices are down. Real estate is a cycle. Go back 10, 20, 30, 40 years. It may go down a little temporarily, but in the end it has gone up. Don’t look at the market today, look at what your intent and plans are. Look towards your future.