It’s official, the median price for a home in the Santa Barbara area is back over $1M as of the first quarter this year. The last time Santa Barbara saw its home price median go over $1M for any quarter was in the second quarter of 2008. The first time it happened was in the second quarter of 2004.
Following is the progression of Santa Barbara’s quarterly home price median over the past two years.
2012: $810K; $815K; $839K; $833K
2013: $928K; $973K; $968K; $985K
There’s still quite some distance between the most recent figure and the all-time high of $1.395M reached during the second quarter of 2007.
Amidst the current housing recovery the median home prices for Santa Barbara real estate have outpaced the rest of the nation, and it will be no surprise if they continue to do so. This can be attributed to the historically low inventory levels and high demand, however there’s another factor affecting the numbers. Tighter lending practices along with new regulations put into place by the Consumer Financial Protection Bureau at the beginning of this year has led to more and more entry level buyers having difficulty getting loans. Less entry level home sales contributes to a larger market percentage of high end sales. This allows median sale prices to rise even faster than home values.
It’s important to understand the market conditions and values of any area you’re considering buying or selling in. I appreciate the opportunity of providing you with the most up-to-date and accurate information regarding Santa Barbara real estate, and to assisting you with all of your most important questions and needs. Thanks for your inquiries.