How’s the Montecito Real Estate Market?

August 12, 2024

“You are only one decision away from a totally different life.”

– Wilfred A. Peterson

Recent economic data may signal that hope is on the horizon for mortgage rates. Which means that even in the luxury market and for cash buyers, the market will start to pick up as borrowing costs go down. We are already seeing a significant uptick in new listings and the good ones that are fairly priced are selling quickly. The most active price range in Montecito is the $5M – $10M range.

Interest Rates

After 2 years of higher interest rates, inflation is almost where the FED wants it (2%) and if history is any guide, we may be poised for the market to pick up steam after the election.

Job Creation

The Fed monitors monthly job creation, seeking a consistent slowdown before adjusting the Federal Funds Rate. Fewer new jobs are being created indicating a cooling yet strong economy, which is their goal.

Unemployment

Though unemployment is currently low, the rate is rising slowly. The Fed wants this rise to continue before cutting the Federal Funds Rate, as it would curb spending and control inflation.