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  • Alyson Spann

Is the Real Estate Market Really Poised for a Crash?


Dear Friends,

The media has been stating that the real estate market may be headed for a crash because sales have slowed. Not True! In fact, The California real estate market is as robust as ever, and purchasing a home remains one of the greatest investments you can make. Here are the facts:

  • A 7% drop in total Single Family Residence between June 2017 (443,000 SFRs sold) and June 2018 (411,000 SFRs sold) prompted sectors of the mass media to proclaim the beginning of a crash. In fact, it has merely been a return to average sales volume (~405,000 SFRs) from a particularly busy 2017, largely due to a lack of inventory in 2018. This is not indicative of a crash.

  • Average home price has increased from $552,420 in 2017 to $602,760 in 2018. Prices drop during a crash.

  • Average Days on Market (DOM) has stayed constant at 15 from 2017 to 2018. Average DOM increases during a crash.

  • Price per square foot increased from $270/sq.ft. in 2017 to $290/sq.ft. in 2018. You can guess what happens to Price/sq.ft. during a crash.

  • List Price to Sales Price ratio has stayed constant at 100% between 2017 and 2018. What crash?!

Now let’s take a look at the numerous benefits of buying a home in today’s market:

  • Stability: Home prices in California have constantly increased since 1970, making a home an ideal hedge against inflation.

  • Safest Loans since 2009: Tight restrictions and improved lending practice have made garnering a loan safer than ever.

  • Low Mortgage Rates: Loan rates are currently under 5%. A low inte

rest rate directly translates to more buying power, so your dollar stretches farther.

  • Low Supply/High Demand: A lack of adequate housing supply, coupled with constant demand, means your investment will appreciate and be easily transferable on the open market.

  • Homeowner’s Net Worth is 45X Greater than Renters: Renters build equity for their landlord; owners build it for themselves!

  • Step Up Buying: Can’t afford your dream home now? Starting small allows you to build equity and work towards your dreams in a stable manner.

Whether you are looking to purchase your dream home or sell your current property for top dollar, Spann & Associates has the expertise to ensure you succeed in the Santa Barbara market. Give us a call or email today to start your stress-free transition!

Sincerely,

Alyson Spann

Past President SBAOR, 2016 Realtor of the Year

(805) 637-2884 – Alyson@SpannAssociates.com

www.SpannAssociates.com


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© 2020 Spann & Associates Real Estate

All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. This is not intended to solicit property already listed.​

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