2020 Real Estate Market Prediction

The Santa Barbara Group has brought out the crystal ball, ran the numbers and has come up with its 2020 Real Estate Market Predictions. The group summarized its findings for how 2019 behaved and offer thoughts for 2020 in the video below.

If you prefer to read, we offer that too. We’d really like to hear your thoughts. How is your business doing? What are the challenges? What do you think 2020 will bring? Just leave your thoughts in the comment section of this post or the video.

We hope 2020 is a remarkable year for you. If we can be of help/service, please know we are here for you.

Joe, Garrett and Avi
The Santa Barbara Group
Berkshire Hathaway Home Services, California Property

How was the 2019 Real Estate Market in Santa Barbara? Thoughts from Joe Parker

The best way to describe 2019 is steady and sustainable. As both a Realtor and homeowner, I like that. There is nothing more unsettling than a rocky, crazy market. Luckily, 2019 was like riding a clean wave all the way to shore.

In 2019, the average Santa Barbara area homeowner saw a 3 to 5 percent increase in property values. Although some say that’s pretty low, I would say it’s sustainable and won’t get you into trouble.

Single-family home sales were up about 3 to 5 percent when compared to 2018. Nothing earth-shattering here and certainly won’t go down in the record books. I think most of us would rather get our adrenaline rush on a wave or cutting through powder that with our homes.

The condo market didn’t fare as well as the home market. Values did not go up appreciably. Most of us feel this was because of the influx of more inexpensive condos in Goleta. (That is if one thinks $600,000 to $800,000 can legitimately be called low-priced. Some condo units that sold at top-of-the-market prices in 2017-18 had difficulty finding buyers in 2019.

All in all, 2019 was a pleasant and more sustainable market, something needed if we are ever going to find space for affordable housing.

Our 2020 Predictions for The Santa Barbara Real Estate Market… Thoughts from Garrett McCaw

We do not see any significant market changes on the horizon for 2020. There is no reason appreciation for single-family homes will either flatten or jump wildly. We expect condos will probably see a wee bit of good news as much of low-priced inventory has sold. Don’t hold your breath for much more than 3 to 4 percent, in any case.

One reason for stability is lending standards. As many of us remember, there was a time when it was pretty easy to get a home loan. For several years now, the requirements have been much stronger, making it more challenging, especially for first time home buyers. Nothing is changing on that front, keeping the available buyer pool on the smallish side.

Our advice for home sellers in 2020 is much like that for 2019. Be aware that home values are not rising dramatically when you think about the sales price. Remember, many homebuyers prefer move-in ready and mostly updated properties.

Will The Coming Election Have An Effect On the Santa Barbara Real Estate Mark?

Reflections from Avi Becker

Naturally, the election cycle could be a real estate market change factor. Elections are a disruption in the social model. They can cause some to put off buying or selling their home. It is simply a fact that uncertainty and change causes people to be more thoughtful and careful.

Thankfully, we live in a unique area and Santa Barbara people are darned resilient and amazing. That said, we don’t think the elections will have a significant effect on our real estate market. Perhaps, if we were in a substantial market change cycle, we’d feel different. In our current sustainable market, we see smooth sailing for 2020.

We hope you have fantastic holidays and look forward to seeing you in 2020!!