National news has recently reported that home prices in 40% of several hundred metro areas are back to peak, and predicts that over 50% will be back to peak by the end of 2016. Looking at all areas nationally home prices are still down an average of 12% from pre-recession peaks. The national average is very close to where Santa Barbara home prices are with relation to the last peak. Following are three Santa Barbara properties that have sold in the past two months, and also sold around the last peak.
1010 N. Nopal Street - Sold in 2006 for $860K - Sold in 2015 for $740K
618 Castillo Street - Sold in 2007 for $1.35M - Sold in 2015 for $1.26M
1026 E. Canon Perdido Street - Sold in 2006 for $1.716M - Sold in 2015 for $1.6M
Santa Barbara and surrounding areas actually recorded an overall median home sale price drop in 2015, from $1.175M to $1.15M, with the median fluctuating from $1.2M in the first half of the year to $1.08M in the second half. The last peak median home sale price in the Santa Barbara area was $1.275M in 2005.
Most financial experts predict that although interest rates may rise slightly in 2016, they will still be at historic lows. This is good news for buyers who’d like to take advantage of the slowdown in sales aftershock we may experience through the first part of 2016.
I appreciate your inquiries and wish you a very Happy New Year!