Santa Barabara is moving to a period of economic expansion as consumer confidence continues to rise and interest rates remain to be on the lower side. Real Estate Market trends suggest that the value is set to increase considerably shortly
The median home value in Santa Barbara is $1,055,300. Over the past year, the home values have gone down by -0.1% in the past one year. Compared to this the average prices of homes in the United States was just over $200,000. Given the fact that Santa Barbara is a luxury market impact on costs are as expected. However, the real estate market in Santa Barbara is expected to grow at 4.9%. So, anyone looking to invest in real estate in Santa Barbara should probably do it now before the prices rise.
The listed median price per square foot in Santa Barbara is $754, and this is much higher than the rates in Santa Maria- Santa Barbara Metro area. The median rent in Santa Barbara was also higher at $3950 than the Santa Maria-Santa Barbara Metro which was at $3375.
The real estate market in SantaBarbara is set to benefit from foreclosures. About 3.1 homes per 10,000 are foreclosed in Santa Barbara after homeowners fail to pay mortgages. Foreclosure filings were higher by 89% when compared to last year. These foreclosed properties are excellent investment opportunities for investors looking to invest in Santa Barbara. The nondistressed real estate is selling at about $1,000,000. However distressed assets are sold at a much lower average of nearly $770,000. This translated to about 23% savings for the investors.
For those not interested in the distressed property, the luxury market provides excellent opportunities. Santa Barbara is listed as the fifth city for the highest number of active luxury listings. The city also has seen general growth in most of the areas in a short span of time. The price rise is likely to continue in the coming days.
The rental property continues to provide good returns to the investors with high occupancy returns. The poor availability of rental properties have led to increasing rents and investors in rental property are seeing good profits. Most real estate markets along the Californian coast have benefitted from high appreciation rates, and Santa Barbara is no exception. Homes that were valued at around $700,000 are now estimated to be over $1 million. And it is not done yet; the prices are set to go up even more if experts are to be believed.
It is no secret that the Santa Barbara housing market is considered the most expensive in California. The rise in the price of property and the rental value has made the cost of living skyrocket, and it is estimated to be 22.5 percent higher than the rest of the State.
With high growth prospects, Santa Barbara presents a good potential to the real estate investor. Besides offering better appreciation, Santa Barbara also offers good rental income to the prospective investor. And stressed properties going at a discount make for a killing to the keen-eyed investor.