Santa Barbara Real Estate News

Article Written By: Barbara Reaume5

The inventory available in the city, according to Santa Barbara Real Estate News, is in a decline from a high of about two thousand housing units. Now, there are only about one thousand four hundred properties available on the market. This declining trend is attributed to two sources, the first being properties making their way into escrow and the second one being sellers retracting their homes from the market due to less than favorable prices offered to them. The net effect is a tug of war between sellers and buyers, a sort of stalemate. This translates into buyers waiting for bargains and sellers hesitant to sell because prices offered are too low.

There is not an inventory glut according to reports in Santa Barbara Real Estate News. Therefore, the stalemate is distressing both sellers and buyers. Buyers are keen to buy, as many of them are cash buyers of second homes. This is leading to buyers suffering from a lack of quality inventory from which to pick. The sellers, on the other hand, who have been in the market for as long as many months are holding out on their asking prices, and would rather take the properties off of the markets than mark down their propertyandrsquo;s prices.

Santa Barbara Real Estate News reports the luxury home market has grown rapidly in the past few years, posting record sales in the same period. A luxury home is one that is valued at above ten million dollars, and in this area, business has been good. With the low supply and high demand for high-end housing, the records have been forthcoming at a steady pace. It is also due to Santa Barbaraandrsquo;s beauty and reputation as a haven that drives prices up. Speaking of property supplies, there exist restrictions on growth due to bordering residential communities, mountains, and oceanfront, which hold back expansion.andnbsp; The land available for new construction is severely restricted. New construction is also heavily regulated by the local government. Looking at demand reports, Santa Barbara Real Estate News says the city has always been on many peopleandrsquo;s wish list as an ideal home area, especially wealthier property buyers. The demand for property in this city has been mainly from domestic sources, but it is spreading due to globalization. When this foreign demand is added into the equation combined with the traditional strong domestic demand, demand will continue to outstrip supply for years to come.

With other factors at play, this scenario is going to go ahead for the near future. The economic stature of the city remains strong, and the property market is not affected to any large degree by foreclosures and sub prime issues, because a huge number of these homes are bought in cash. The expense of the homes also negates speculation, even looking into future values. Sellers are also restrained in their sell sentiments by soaring tax bills on capital gains, and a dearth of replacement options, in terms of property. With supply being low, owners who paid for their properties in cash have no reason to lessen their asking prices, which has the effect of keeping prices high, reports Santa Barbara Real Estate News.

About the Author

Barbara Reaume is author of this article on Santa Barbara Real Estate Directory. Find more information about Real Estate Services Santa Barbara here.

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