After gaining momentum and having the strongest showing in October, existing home sales slowed considerably in November according to the National Association of REALTORS®. Throughout the country, all regions showed declines in home sales in November, a typical seasonal occurrence.
NAR reported December 22 that total existing-home sales fell by 6.1 percent to a seasonally adjusted annual rate of 4.93 million in November. October’s value represented the strongest showing in sales for 2014 with a downwardly-revised rate of 5.25 million. November also represented the lowest annual pace seen since May, which had 4.91 million existing homes sell, however it still managed to have a stronger showing than November 2013 by 2.1 percent.
“Fewer people bought homes last month despite interest rates being at their lowest levels of the year,” said Lawrence Yun, chief economist at NAR. “The stock market swings in October may have impacted some consumers’ psyches and therefore led to fewer November closings. Furthermore, rising home values are causing more investors to retreat from the market.”
Inventory has continually been a factor that has plagued the national real estate market. With the economy recovering rather steadily at this point, builders have experienced a little bit of trouble in developing lots fast enough and in an affordable manner to keep up with a very eager buyer base.
“Lagging homebuilding activity continues to hamstring overall housing supply and is still too low in relation to this year’s promising job growth,” Yun continued. “Much faster price and rent appreciation – easily exceeding wage growth – will occur next year unless new construction picks up measurably.”
Santa Barbara Luxury Market Eases In Favor of Buyers
With lagging inventory throughout the country, many markets have been characterized as having too many buyers and not enough available homes which has driven up prices considerably. On the luxury side of things, the market operates very differently and Santa Barbara is a prime example of that phenomenon.
According to Altos Research, a California-based real estate analytics company, there are actually more sellers than buyers on the market, which has helped to make home prices more affordable for luxury buyers. Altos measures buyer and seller favor through a unique value known as the Market Action Index, which indicates from a neutral value of 30 whether buyers are in favor at lower values or sellers are in favor at higher values. With a current MAI of 29.35, buyers are just slightly in favor in Santa Barbara.
The falling median value of homes in Santa Barbara are also further proof that now is the time to buy in this great community. Earlier in the year the median home value peaked around $2.7 million, but this value has since fallen considerably. As of December 26, the median single-family home value in Santa Barbara is $1,729,923.
If you are interested in learning more about Santa Barbara homes for sale, please feel free to contact our team of luxury property experts today.