Do we know what’s coming?
There are a lot of sound bites predicting a housing market crash, and we have some buyers telling us they want to wait for prices and interest rates to drop…while interest rates are poised to come down, prices don’t seem to be on the same trajectory, which begs the question:
Is waiting a good idea?
It’s Economics 101 (I was an Econ major at UCLA!): Low supply and high demand drive prices up. Despite rising inventory, there still aren’t enough homes to meet demand. Mark Fleming, Chief Economist at First American, notes, “There’s just generally not enough supply.” Builders are catching up from years of under building, not overbuilding. Even with more new homes, supply falls short.
Still traumatized from the 2008 crash? That history is not repeating anytime soon.
Nationally, we have about a third of the inventory we had in 2008. With fewer homes on the market, prices are unlikely to drop significantly.
A repeat of 2008 isn’t likely because conditions are not the same today as they were in 2008. Today many homeowners are holding onto their properties due to their historically low mortgage rates and that is further constraining supply.
New Homes and Foreclosures
Foreclosures are also below normal levels due to stricter lending standards, far from the distress seen in 2008.
The Full Picture
Both nationally and in Montecito, with low inventory and good demand, prices aren’t expected to drop. For the ultra-luxury market ($10M+) we see more price flexibility, but that market segment is much smaller and driven by desire not need, so pricing and sales are much more nuanced with each sale having its own story and trajectory.
What Happened in Montecito Last Week?
July 21st – July 27th
11 New Listings
0 CLOSED SALES
1 Pending Sale
weekly spotlight
Instagram Vs. Reality…
Making this Montecito estate picture-perfect is easy. 🌸 📸 But the real magic happens behind the scenes! Visit 849 Ashley Road and see how my dedicated team and I elevate this incredible property.
