We’ve all heard the cliche that Santa Barbara is its own bubble. This is true and even more so for the real estate market. Our micro-market is a goldmine and one to be proud of. Our real estate market has outperformed the national average and it doesn’t appear to be stopping any time soon. This is especially true for homes located within the desirable school district of Mountain View.
Mountain View properties had a banner year in 2017. 56 single family residences sold with an average sale price of $1,780,673. Single family homes sold for 94.8% of their original list price and were on the market for an average of 42 days.
The Mountain View school district real estate market in 2017 trumped 2016 in virtually every category imaginable. Below is a comparison:
2018 will be another banner year for homes within the Mountain View school district. The momentum produced from 2017 will roll into 2018.
Reasons Real Estate Values Could Continue to Surge
There are several factors that could favorably contribute to real estate values continuing to rise:
1) We live in the Santa Barbara bubble where the economic principle of supply and demand must be embraced. Demand for homes is likely to outpace supply keeping values on the rise.
2) The Tax Cuts and Jobs Act will reduce the overall taxes paid by many households putting more discretionary income in the pockets of many.
3) The Tax Cuts and Jobs Act has the potential of cutting taxes for businesses, hence, affording companies the opportunity of paying higher wages and/or adding employees to grow their businesses. This would create additional demand for housing in an area with a relatively fixed supply.
4) Mortgage interest rates are still near historic lows even if they do rise.
5) The stock market is at an all-time high and doesn’t look to be pulling back any time soon. This solid performance can only deepen the pockets of many who can afford Santa Barbara real estate prices.
6) Families want to send their children to desirable Mountain View elementary school.
Reasons Real Estate Values Could Be Impacted
There are a few factors that could adversely impact the market:
1) Tax Reform – also known as Tax Cuts and Jobs Act – was passed on December 22nd, 2017. This act lowers the tax deduction allowed for mortgage interest on an owner occupied home mortgage from $1,000,000 to $750,000 for home purchases.
2) State and Local Taxes – also known as SALT – under this portion of the bill individuals are allowed to deduct up to $10,000 in state and local income or property taxes. Capping the deduction of property taxes at $10,000 has the potential of impacting real estate values.
3) Rising mortgage interest rates affect housing affordability. Rates will likely continue to rise, hence, making homes less affordable and the pool of prospective buyers slimmer.
In a survey taken by the California Association of Realtors 64% of Californians believe home prices will rise in 2018. This is a stat that cannot be ignored. If consumer outlook is positive for the housing market and confidence within the economy continues, the housing market will have no direction to go but up.
If you’re thinking of selling your home within the Mountain View school district, now is a tremendous time to capitalize. If you’re wanting to purchase a home, act promptly while interest rates are still near historic lows.
If you’re considering either of the above, please contact us at 805-770-0889. We look forward to answering any real estate questions you may have and assisting you in your life’s next step.