Santa Barbara, California Realtors say that the summer real estate market continues to be extremely active, despite the recent uptick in mortgage interest rates.

"Santa Barbara is one of the few locations in the world that offers a year-round temperate climate as found in the Mediterranean," says Realtor Roy Prinz. "Our coastline is unique in the western United States because it runs east to west, which maximizes our sun exposure. The area features beautiful sand beaches, oak forested foothills leading up to the coastal mountain range, all surrounded by open vistas of the natural California coastal environment. The Santa Ynez Valley is renowned for their vineyards and wineries. Cultural activities abound - Santa Barbara is vibrant in the arts, and outdoor activities appeal to almost every interest and are an important element of our lifestyle. Educational opportunities abound and health care services are state of the art. Santa Barbara is an exceptional place to call home. If you've traveled the world, Santa Barbara will appeal to you like nowhere else because it is such an easy place to live."

Prinz explains, "Summer is here and as usual we're seeing an active real estate market. The market segment below a million dollars has been strong with well-priced properties enjoying a lot of activity. Those properties priced from $1M to $2M have been generating a lot of interest with good sales. Above $2M there have been fewer sales than last year and above $3M the market has been reserved. We've seen several notable sales in the extended range above $5M with benchmarks being set for ocean-front property and premier locations. Interest rates remain at very attractive incentive for those homebuyers seeking financing. The economy has regained some of the confidence that the first quarter was looking for. The rest of the summer looks like business as usual for our market. In the last 30 days, there have been 47 properties over $1M that sold."

Says Realtor Lynn Bauersfeld, "The south Santa Barbara County real estate market is still going strong, despite interest rate increases! This is especially true for residential properties under $1,000,000; and condominiums under $600,000. The 'high end' homes are taking a bit longer to sell, with as much as a 30 percent 'fall out' rate, according to one of our title companies with an office in Montecito. The main reason that escrows fall apart are: lack of preapproval for financing for the buyer and buyer's asking for work to be done (or a credit in escrow) after the home inspection has been made. There is always a certain percentage of 'buyer's remorse' that adds to this. With prices what they are in this area of the county, we are seeing many more buyers opt to purchase in the No. County and also Ventura Co. These areas are quite a 'commute' for buyers who are employed in the Santa Barbara area. There is a strong desire for 'fixer upper' properties, so that buyers can buy at a lower price and 'fix up' for themselves. There is also a strong demand for duplexes (live in one and rent out the other). Sometimes families want to share the expense of the property, but retain some privacy, also. The market hasn't changed in that regard for most of this year. My opinion is that it's still pretty much a 'seller's market' under $1,000,000 and a 'buyer's market' in the $1,000,000 +....in particular, the $2,000,000 and up range."

Published: August 19, 2003

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