The sales statistics for the fourth quarter show that there were 412 home sales during that time, the most improved since the fourth quarter of 2006 when there were 415 sales. In the last quarters of 2008 there were 311 home sales and 2007 had 303 sales. The one constant has been the decline in the average and median prices. The average home sales price in 2009 was $1,074,279 and the median price was $726,333 compared to the same period in 2008 when the average sales price was $1,283,517 and the median price was $742,000. The number of homes sold that were priced over $1m remained the same at 114 for both years. This quarter compared to the third quarter shows an increase in the number of sales, up from 366 units, the average price declined from $1,165,716 and the median price increased from $694,167.

Let´s take a look at the individual communities in and around Santa Barbara. In Q4 of 2009, Santa Barbara had 253 sales with and average price of $825,114; this was an 86% increase in the number of sales over the same time last year with more than a 16% decrease in the average sales price. Goleta had 59 sales with an average sales price of $575,156; this was a decrease of 30% in the number of sales and a 17% decline in the average price. Montecito had 50 sales with an average sales price of $2,446,977; this was a 32% increase in the number of sales and an 11% decline in the average sales price. Carpinteria had 34 sales with an average sales price of $650,564; this was a 13% decline in the number of sales and a 48% decline in the average sales price.

Right now it is the buyers who are defining the real estate market. They are cautious and are placing an emphasis on value. Value is a mater of contrast, one alternative compared to others, the present era compared to the evolving market history.Looking back over the past few years it is clear that there are value opportunities available in today´s real estate market. The question in buyer´s minds is how will this years values compare to the market in the coming months and in 2011. An investor´s perception is formed by the value change in their current investments weighed against their confidence or lack of it of future change and the likelihood that these assets will grow or depreciate over the time period under consideration compared with alternative opportunities. When the path is clear there is less resistance to invest when the path is obstructed the journey is less likely to be taken.

The present real estate market is clouded with uncertainty and opportunity. Some of the prevailing conditions that need to be resolved and stabilized include the financial stability of banks, the challenges facing the commercial real estate market, home foreclosures, unemployment, fiscal stability in international markets, fiscal stability at home including the increasing indebtedness of the country, entitlement programs and tax increases. All of these factors challenge the confidence of real estate buyers and sellers to participate in the market. We will see fewer buyers than in recent years past all of whom will be looking for opportunities to invest in value.