By Bob Walsmith Jr.
2022 President
Santa Barbara Association of Realtors
The biggest question on people’s minds these days regarding our local real estate market is, “What is going to happen to the market in 2022?” That’s really an easy question to answer: I have no idea! You might as well consult a Magic 8-Ball or a fortune cookie. I say that because we are way overdue for a “correction” to prices, both locally and across the country.
Historically, prices tend to go up over a 4-6 year cycle and then go down and correct themselves. However, we are in a period of historical growth and it has been almost ten years now since home prices started rising. And during the pandemic we have seen prices go up at rates not seen by anyone that I have talked to. Couple that with very little inventory available and historically low interest rates, and homes are selling for prices farther above the listing prices than Realtors have ever seen.