Santa Barbara Market Keeps Appeal – Secondary & Tertiary Real-Estate Markets Attract Buyers from Primary Markets
The Urban Land Institute released their annual Real Estate Market survey last week at their fall meeting in San Francisco. The survey asked real-estate professionals their views on the best markets for property investment and development in 2016. Houston was last year’s number 1 choice but since the 50% drop in oil prices they fell out of the top 10 to number 30 and real estate values shifted to now number 1 Dallas-Fort Worth where job creation is still hot.
In California San Francisco remained in the top 10, at number 8, but down from its third-place ranking in last year’s survey. Another major gateway city, Los Angeles, was number 10, and San Diego moved to number 16 from 15. These cities were on an unsustainable pace as prices rose beyond what buyers are willing to, or can pay. If they can rent or commute pure economics will drive buyers to value in outlying communities and budget preservation.
The conclusion showed a shift away from primary markets to secondary and tertiary markets as money chases value. Smaller cities like Santa Barbara, where real estate remains active, are clearly benefiting from this shift. Respondents to the ULI survey chose single family housing to be the best opportunity for 2016. Follow this link to read the entire report. http://uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-Estate-United-States-and-Canada-2016.pdf
Santa Barbara’s third quarter real estate statistics compiled from the MLS bears this out as the number of listings year over year on the south coast continues to rise with the number of sales exceeding the listing pace.