These points are mentioned because they are directly related to real consumer confidence and become a factor in the equation of local real estate investment analysis.At the heart of all real estate transactions is the confidence that a buyer has regarding values, present and future, from which an offer evolves.We have seen market corrections in real estate over the past couple of years in Santa Barbara and thankfully not as severe as some municipalities.On the surface nothing has changed, we still have some of the best weather in the country, a lifestyle that is the envy of many and a diverse selection of residential opportunities.Our market continues to slowly improve over last year both in the number of sales and price stability.Our market will continue to evolve as the larger economic factors affect the national and global economies.As always there are some great opportunities as well as situations that need further analysis before engaging.In the present era more than ever it is worth your time to engage an experienced Realtor to assist you with property valuations, guidance with disclosures and inspections, community insight and transactional documentation.

Here´s a look at how our market fared over the second quarter of 2010.Over the second quarter this year there were 418 homes that sold which is a significant increase over the same period in 2009 when 357 homes sold.This is also an improvement over Q2 of 2008 when 394 homes sold but not back to the same pace as in the Q2 of 2007 when 504 homes sold.We did have a number of transactions that were short sales or foreclosures that were part of the sales mix.The average sales price in Q2 of 2010 improved slightly over 2009 to $1,162,164 from $1,101,796 an increase of 5%.The median sales price however decreased slightly to $716,167 from $731,083 the previous year, a negative change of 2%.The number of properties that were priced over a million dollars that sold was 107 in Q2 of 2010 compared with 98 for the same period in 2009, an improvement of 8%.It appears that the Santa Barbara real estate market is stabilizing.The missing part of this equation is a volume increase in the middle and upper market segments.There have been a few sales as noted in the market sales index above; an improvement in these numbers will indicate a full market recovery.

The following is a statistical review of how the individual communities around Santa Barbara performed over the second quarter.Santa Barbara had 264 sales with an average price of $908,383 and a median price of $743,333 compared with 2009 when there were 357 sales with an average price of $1,101,796 and a median price of $731,083.This was a decrease of 26% in the number of sales and an 18% decline in the average price with a 2% increase in the median price. Goleta had 64 sales with an average price of $582,639 and a median price of $595,083 compared to 2009 with 69 sales with an average price of $573,397 and a median price of $527,333 representing a 7% drop in the number of sales, a 2% increase in the average price and a 13% increase in the median price.Montecito had 45 sales with an average price of $3,586,216 and a median price of $2,527,750 compared to 2009 with 39 sales with an average price of $3,053,772 and a median price of $2,068,583 representing a 13% increase in sales with a 17% increase in the average price and a 22% improvement in the median price.Carpinteria had 41 sales with an average price of $980,938 and a median price of $519,333 compared to 31 sales with an average price of $859,792 and a median price of $489,462 which shows an increase in sales of 32% with a 14% increase in the average price and an increase of 6% in the median price.