Second Quarter, 1999
After a good start during the first quarter of 1999, the second quarter has become incredible. Home prices continue to escalate rapidly as an unprecedented creation of wealth from the stock market makes its way into local real estate.
The strongest segments of the market seem to be the opposite ends of the price spectrum- entry level homes/condos, and major estates. Everything in between is doing well, but these areas have been phenomonal. There have been many sales of estates and estate sites selling above $8,000,000.
Interest rates have moved up sharply this past quarter. However, except for entry level Buyers, this generally does not dictate someone's decision to buy or not. Usually, it merely impacts the price range they feel most comfortable in.
I anticipate a strong real estate market for Santa Barbara for the remainder of 1999.