The Santa Barbara Groups Real Estate Blog

It seems that everyday when I read the paper, I am bombarded with conflicting news on the real estate market. One day sales are up...the next they are down. One day rates are up...the next they are down. It is confusing to say the least, but as an agent on the front lines I have my own opinion.

Our market below $800K is on fire. Homes in this range sell immediately unless they have something wrong with them. Inventory in this price range in low. In some neighborhood there is nothing for sale.

$800K - $1.5MM is slow and there is a lot to choose from.

As we creep into the upper mid range, $1.5MM - $4MM we are starting to see quite a few sales fueled by price drops. Good properties are selling.

Most interesting is the upper upper end which has dropped by about 50% and is now moving I notice four closings at $12MM and up. When the big boys feel good about buying it reverberates throughout the market and confidence builds...we will see.

The Fed is center stage this morning, and will continue to be for the next few days. Fed Chairman Ben Bernanke is expected to be confirmed to a second term later this week. In addition, the Fed's comments for the Fed Funds Rate and their Mortgage Backed Security purchase program could have a big impact on the markets on Wednesday.

In today's news, Existing Home Sales for December were weak, likely due to individuals who would have normally purchased in December moving their transactions into October to ensure they'd benefit from the tax credit. Rates continue at low levels all eyes on the fed.