Distinctive Santa Barbara Real Estate

Santa Barbara Real Estate & Economic Forecast - February 2008

The Santa Barbara Real Estate & Economic Forecast was held this morning at the Fess Parker Doubletree.    Here is a synopsis of the presentation:

·         A 20% uptick is forecast for Santa Barbara County this year.   It should begin no later than the second half of 2008, and probably sooner.  This occurs as buyers/borrowers believe a bottom has been reached in mortgage rates and/or home prices and re-enter the market.    A recognition by patient home buyers that home prices have bottomed will produce a sense of urgency that is needed to stimulate sales in the housing market.  The combination of falling interest rates with lower home prices is bringing buyers back into the market. 

·         Santa Barbara has weathered the “housing crisis” much better than most of the U.S. and considerably better than many areas of California as well.    Santa Barbara’s  quality of life coupled with its  limited inventory are the predominant reasons.

·         Montecito and Hope Ranch continue to show the greatest strength.  Demand remains strong for high-end Estate properties where many buyers pay all cash and are not affected  by the current disruption in the mortgage sector.   

·         Builders have stopped building which puts pressure on the available inventory.  Many residential projects were delayed in 2007 and developers are hesitant to begin new construction in 2008. 

Feel free to contact Wendy Elizabeth Gragg at 805.565.0246 or WGragg@DistinctiveRealEstateOnline.com  with any  question or for more detailed analysis.  You can also visit www.DistinctiveRealEstateOnline.com   

Santa Barbara Luxury Real Estate Market Leads The Way Once Again in 2008

The luxury real estate market in Santa Barbara is once again leading the way in year over year revenue growth.  Since we are so early into the year, the luxury segment for this writing is based on properties priced at $5 million and above so as to provide the largest sample size. The dollar volume of properties that have sold in January 2008 that were priced $5 million and above is up a whopping +34% year over year.  What is even more impressive is that the number of sold properties in Janury 2008 is down -20%.  That's right.   With 20% less sales, revenue is up 34%! 

So what does this say about the Santa Barbara real estate market?  It demonstrates that despite all the resession and housing crisis concerns, that the wealthy are deciding to purchase in Santa Barbara anyway.   Santa Barbara is one of the most beautiful places in the world.  Many of the weathly buyers of property in Santa Barbara have traveled the world and know first hand how very special Santa Barbara is.    Santa Barbara is a small oceanfront resort community with an incredible quality of life.  Wonderful weather, a clean environment, vibrant flora & fauna, and a peaceful lifestyle all combine to be the perfect place to call home.  Living in Santa Barbara is like living everyday on vacation.   

When wealthy buyers make the decision to buy, they find the selection of properties available for purchase is minimal.  Luxury buyers find there is not much supply to choose from, and while some decide to wait for more selection, they ultimately find that there is never much selection.   When a great property becomes available for sale, it is quickly under contract, in some cases with multiple offers.  This is because several buyers are waiting for the right property to come up.  To demonstrate this scenario quantitatively, the number of new listings of properties priced $5 million and above is off -56% year over year.  The Santa Barbara real estate market is all about supply and demand. 

For information on properties for sale or for more detailed statistical analysis, contact Wendy Elizabeth Gragg, President, Distinctive Real Estate 730 Anacapa Street, Santa Barbara California 93103.  805.565.0246  WGragg@DistinctiveRealEStateOnline.com        www.DistinctiveRealEstateOnline.com