ADD YOUR MONTECITO PROPERTY TO MY PORTFOLIO NOW
Although many people will tell you that the ideal time to sell your home is in spring, that may not hold true in today’s real estate market. Sellers need to consider the general direction of their local economy as well as the national mortgage interest rates in order to make the best decision of when to sell. And both of the above are in prime shape right now, especially here in Montecito.
Low Rates and a Strong Job Market
Both sellers and buyers are benefiting from our current low mortgage rates and strong job market. Combined, these two factors are helping to entice home buyers, even amidst concerns of a future slowdown in our economic growth. According to the credit bureau TransUnion, approximately 8.3 million to 9.2 million first-time home buyers are projected to become purchasers in the coming years from 2020 to 2022. Those numbers are up from 7.6 million in the period 2016 to 2018.
As I explained in a previous blog, The Federal Reserve has no plans to raise interest rates for the time being. Consensus estimates suggest that mortgage rates will hover around current levels next year. Freddie Mac reported that the 30-year fixed-rate mortgage average is remaining steady at around 3.68%, a number that’s down from the 4.75% reported a year ago. Meantime, the U.S. Bureau of Labor Statistics reports that total non-farm payroll employment rose by 266,000 in November, and the unemployment rate was little changed at 3.5%.
Combined, these figures mean a potential boon for both home sellers and buyers alike. Why? Because the current low-rate environment can actually increase employed and affluent consumers’ purchasing power. That means more prospective home buyers can afford a luxury Montecito home today.
Millennials Drive First-time Buyers
As Millennials enter their 30s, they have become the driving source of first-time home buyer demand. Leading economists say this generation is expected to continue to boost demand in the real estate sector as they get married and have children.
“Low rates are increasing buying power, a great beneficial trend for potential first-time home buyers, like millennials,” said Mark Fleming, chief economist at First American Financial, a real estate title insurance company.
Low Inventory is Still an Issue
Generally, historic data shows that more people buy homes when mortgage rates drop. But the continued limited supply makes this a tough housing market for buyers. Low rates may boost demand, but homeowners have fewer incentives to move as many are enjoying their locked in lower rates. Still, the supply and demand imbalance has pushed home values higher, meaning now might be the time to sell. The S&P CoreLogic Case-Shiller National Home Price Index reports that last September, U.S. home prices rose 3.2%, up from a 3.1% gain in August. That has created increased competition for the homes that are on the market. And as home prices rise, experts say buying now will save them more money in the long run. The bottom line, experts say buy now.
“Where rates are and where housing prices are, it’s a great time to buy,” said Mat Ishbia, president and chief executive at United Wholesale Mortgage.
My Exclusive Listings
When selling a home, nothing should eclipse what time is right for you—personally, professionally, and otherwise. Is now the time to sell your Montecito home? Are you ready to move on, or up into bigger digs? Many homeowners sell when they change jobs or when their children switch schools, or when the kids fly the coop and the parents are ready to downsize. If this is you and you’re ready to move now in Montecito or any of the upscale surrounding areas, I can not only help you sell your existing home, I have some amazing listings for you to consider.
My portfolio currently includes distinctive offerings like the Re-imagined Montecito Farmhouse Compound pictured at the top of this blog. This homage to a privileged lifestyle sitting on approximately 2.28 impeccably landscaped acres blends 21st-century design and amenities with a nod to nostalgia. The new owners will appreciate the compound’s dramatic mountain vistas with glimpses of the ocean, manifesting Montecito’s coveted indoor-outdoor lifestyle.
This Ocean View Mediterranean-Style Estate showcases unsurpassed ocean and mountain vistas from its primary residence. Nestled on approximately 3 acres, the recently renovated estate features custom details and finishes, with soaring vaulted open-beam ceilings, floors of terra cotta and wood, and an abundance of spaciousness and light.
One of my favorite current listings is called the Somerset Estate. Built in 1918 in Montecito’s elite “Golden Quadrangle,” this outstanding property has been blessed with a combination of provenance, impeccable care, skillful renovation, and tasteful updating.
For buyers, I have many other amazing Montecito listings you can check out on my comprehensive website. Meantime, if you think it’s time to sell in the area, I suggest you do it now. Both buyers and sellers can give me a call at (805) 886-9378 or email me at Cristal@montecito-estate.com. I’ll happily put my years of experience, knowledge, and contacts to work on your behalf to sell your home as quickly as possible for the best possible price or find you the perfect family home in the area. Why not allow me to do both at the same time?