Market update 9/14/2008
The current median home price for Santa Barbara is $1,075,000 and $583,500 for Condos. Considering that we were at a high of $1,250,00 in 2005 for homes and $675,000 for Condos we are off by about -20%.
Sales are off as well. Currently to date for 2008, 543 homes have closed and if you compare that to last year sales of 725 for the same time period we are off -25%. Comparing that to 2005 sales of 861 for the same time period we would be off by -37%.
There where 372 Foreclosures last year (2007) in Santa Barbara County and 897 this year (2008)... OUCH, and the year is not over yet. With all thats going on in the banking community, who knows what will happen next. I wish I had a Cristal ball so I could tell you exactly what would happen next, but with changes happening on a weekly basis who can really tell. My best guess would be that the market will continue to be slow till the end of 2009 and we will more than likely see more price reductions, depending on what happens. Over the long run, Santa Barbara will always be a good investment and prices will go back up again after the market corrects itself and that could be at least another 3 to 5 years.
Just ride it out and you will be just fine...
Be well and prosper!
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