Santa Barbara Real Estate Market Report April 2019

It’s time for another Santa Barbara Group real estate market report covering the first quarter of 2019. We bring you the news in both video and a text summary. Naturally, if you have questions, we are here for you. Let’s get on to the real estate news of  Q1, 2019.

Click On The Video — Real Estate Market Update – Q1, 2019


Read More Santa Barbara Area Real Estate News

zir initiativeThe Dreaded ZIR… let’s get rid of it.

If you are a homeowner, you’ve paid the city several hundred dollars for what is called a Zoning Information Report or Z.I.R.

What Exactly is a Z.I.R?

Under Santa Barbara Municipal Code (SMBC) §28.87.220, a Zoning Information Report (ZIR) is required for most every transfer of residential property. The purpose of the ZIR is to provide information to the potential buyer regarding the zoning and permitted use of the property based on a physical site inspection and records research.

Why We Think It’s Time To Get Rid of ZIRs.

The ZIR was created decades ago before computers, detailed City records, and Seller Disclosures. At the time, real estate was much more a “buyer beware” process, and the ZIR offered some needed protections and information.

However, with today’s lengthy property disclosures, professional inspections and access to City records, the ZIR is more an expensive nuisance than a benefit. Just read what the City itself says:

The ZIR inspector is neither a building inspector nor a licensed surveyor and the ZIR will not include a review of compliance with the Building Code or confirm the exact location of property lines.

Agents, homeowners, homebuyers, and others have come together to put an initiative on the ballot to end ZIRs. At this time we are in the signature-gathering phase.

If you live in the City of Santa Barbara and would like to sign the petition, let us know and we’ll get one out to you. Together we can make this happen.


What’s Happening With Real Estate in Santa Barbara & Goleta?

The Santa Barbara area real estate market is what could be called “balanced.” What does that mean?

We often describe the market as either a buyer’s or seller’s market. In a balanced market, neither side has a distinct advantage. That said, the initial stats for 2019 might suggest we are moving towards a buyer’s market. Why?

When checking year to year stats (2018 versus 2019) we see very similar sales, pricing and inventory numbers. However, the listing price versus actual sales price went down in 2019 compared to the same period in 2018, suggesting that home buyers are negotiating a bit harder and home sellers are willing to give in a bit. FYI… we see the same trend with condos and PUDs.

What Kind Of Properties Are Selling Best?

  • As reported last year, fully remodeled and well-maintained homes sell more quickly and for higher prices. Some say this a millennial thing as many in that age range are not DIY (do it yourself) types. We’d also add that many people have heard horror stories of getting through the City’s planning, zoning, and permits process. They’d rather pay a bit more for a home that is remodeled or updated.
  • Homes in popular areas or with great schools tend to sell more easily too.

Is It A Good Time to Sell or Buy?

  • There is no clear-cut answer to that question on the Sell side. We don’t think you’ll see big property value gains in 2019. Many of the economic gurus suggest less than 3% gains this year.
  • One motivating factor is the current low mortgage rates. Everyone knows they’ll be headed back up sometime soon and higher rates make our homes even less affordable when the buyer is taking out a mortgage.
  • Non-cash home buyers should think seriously about pulling the handle if owning a home is important to them. Interest rates have a significant effect on both qualifying for a mortgage and your monthly payments.
  • We strongly suggest interested home buyers meet with a local, experienced lender. He or she can help you determine a viable price range and put together a game plan for successfully buying a place.

Note, we said a local and experienced lender. We are not big fans of online lenders. We’ve simply seen too many deals fall apart because the lender didn’t know our unique market. If you need help finding a great lender, let us know. We can help you find one.


That’s a wrap for our April 2019 Santa Barbara Real Estate Market Report. If we can help you, answer questions or assist a friend or family member, the Santa Barbara Group is here for you.

santa barbara groupJoe Parker
Garrett McCaw
Avi Becker

  • The Santa Barbara Group
    Berkshire Hathaway Home Services California Properties

About the Author

Gravitar for Gene Urban
Gene Urban

Response to "Santa Barbara Real Estate Market Report April 2019"

Leave a Reply