Real Estate August 16, 2016

High-end market continues to slow

There have been only five sales in the Santa Barbara real estate market so far this year for homes over $10M, a small number when compared with the eleven that sold in the same period last year. Sale dollar volume has decreased a substantial 51% for this elite price range so far in 2016. Sale volume decreases are also being experienced for homes in lesser price ranges, but not to the same extent. Year-to-date there’s been a 15% sale volume decrease for homes in the $4M to $10M range, a 13% decrease for homes in the $2M to $4M range, and a 7% decrease for homes priced under $2M in the Santa Barbara area.

1592 E Mountain Drive

1592 E. Mountain Drive, Montecito. Sold for $11.45M in 2016. Previously sold for $15M in 2006.

A recently published article in the Denver Post, “Aspen real estate in first-ever sustained nosedive”, states that after record sales in 2015, sale volume this year is down 42% for Aspen’s Pitkin County. It also states that sales of area homes in the elite $10M plus price range are down 60% and that the luxury market across the country is slowed, from Manhattan to Palm Beach. Government and economic uncertainty, fears, and imbalances are sited as the main contributors of the recent upper-end slowdown.

It will be interesting to see what direction the ultra-luxury real estate market heads in the rest of the year. I look forward to your questions, inquiries and feedback on this and any other price ranges of interest.