Cape Cod News
Santa Barbara shows strong housing market gains18 Mar 2013 11:52 AM
In the past year or so, the Santa Barbara housing market has undergone a dramatic improvement, and is now considered by many housing experts to be one of the healthiest in the region. According to Noozhawk, prices and demand are rising so steeply that appraisals can't keep up. In fact, sellers are routinely receiving multiple bids for their properties, which suggests that the area's supply of for-sale homes cannot meet the climbing demand.
Unsurprisingly, this supply-and-demand imbalance has resulted in rising property values. According to the San Jose Mercury, home prices throughout southern California have been on the upswing. Santa Barbara real estate listings have been among the most affected, as selling prices have risen reliably for the last few months.
According to data compiled by Zillow, home prices in the area have risen almost 4 percent on a year-over-year basis. After several years of little or no price increases, this is welcome news to many people, although it does mean that buyers are regularly competing against each other for the same few properties on the market.
Not all regions of Santa Barbara have been equally affected by the improvements. According to Trulia, areas such as Riviera, San Roque and Milpas have all experienced especially rapid appreciation, with year-over-year median price gains of 77.3, 69.3 and 36.6 percent, respectively.
According to Noozhawk, these gains are the result of not only the lack of inventory, but also the presence of cash buyers and foreign investors. Additionally, foreclosed properties - which were prevalent during and immediately after the recession - are now mostly gone, which has helped raise the price of homes at every price point.