Third Quarter, 1999
The statistics are in for the first three quarter of 1999 and everything continues to look positive for local real estate.
The Strong Real Estate Market Continues
The number of sales for Southern Santa Barbara County has increased thanks to the strength of the Goleta and Carpinteria markets (up 25% and 17%, respectively). Montecito and Santa Barbara sales have declined somewhat (down 7% and 4%, respectively), due to shrinking inventories, not decreased demand.
The total number of properties offered for sale (both residential and condominiums) has declined to the lowest level in decades. Median residential prices continue to rise, and are currently above $450,000. The number of sales above $1,00,000 is up 30%. The number of sales of homes below $300,000 is down almost 60% -- local homes offered for sale in that price range are disappearing faster than many endangered species.
What do all these statistics mean? Very simply, there is tremendous pressure for prices to keep moving upward. Strong demand, fueled by unprecedented wealth, would be enough to push prices up. So would the shrinking supply of properties offered for sale. Combine these factors with a near doubling of construction costs in the last couple of years and it all adds up to one conclusion -- higher prices for South Coast real estate.
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