Last year there were 52 homes sold in the Santa Barbara area over $5M in price with 15 over $10M and the highest sale at 815 Cima Del Mundo Road for $23.5M. This year there have been only 32 sales over $5M with 10 over $10M and the highest sale at 757 Riven Rock Road for $16.715M. Additionally there are only 3 properties over $5M currently in escrow. The benchmark for ultra-high end home sales in Santa Barbara came in 2007. That year there were 55 sales over $5M with 15 over $10M and the highest sale at 2781 Padaro Lane for $35M.
In the Santa Ynez Valley of Northern Santa Barbara County there were 6 homes last year that sold for over $5M with 1 over $10M and the highest sale at 1733-1777 Fletcher Way for $12.5M. This year there have been only 3 sales over $5M with 1 over $10M and the highest sale at 3462 Brinkerhoff for $22M. One additional property is currently in escrow over $5M. The benchmark for the Santa Ynez Valley came in 2006 when 11 sales took place over $5M with 2 over $10M and the highest sale at 1620 Westerly Road for $24.2M.
The slowing of real estate sales in the ultra-high range isn’t coming from a lack of inventory. In the Santa Barbara area there are currently 85 homes available in the over $5M range with 35 over $10M, and in the Santa Ynez Valley there are 17 homes available in the over $5M range with 6 over $10M.
Have high end home sales bottomed out? If history repeats itself the answer may be yes. It will be interesting to see what the next two years bring. High end market trends have customarily followed the lower end with two years of separation. With low end sales reaching bottom two years ago the writing may be on the wall.
You don’t have to own an extremely expensive home to live in Paradise. We all can enjoy the great amenities, weather, and community comforts that Santa Barbara affords. This is a great time of year to think about and be thankful for our blessings.