It’s been quite trying times for Montecito, Ventura and Santa Barbara since the Thomas Fire ignited on December 4, 2017, burning over 440 square miles and setting up the deadly scenario of mudslides in Montecito. Our hearts go out to the all those effected and our community is thankful to those who’ve lent helping hands amidst the recovery. Reopening of Hwy 101 and Coast Village Road in the Montecito area this week, along with utility crews working franticly to restore utilities to all residents is a victory in the slow journey back to normality.
Many effected by flood and mudslide damage to their homes have expected difficulty with their insurance companies in covering losses however FEMA and several carriers are now allowing owners to claim Fire as the “efficient proximate cause”. Still, the rebuilding and repair of damaged homes in the area will take quite some time as homeowners find living accommodations where they can. Victims of the Thomas Fire and Flood are being assisted by the following organizations, which those generous and willing can make donations to.
Many have asked how the real estate market is and will be affected by the recent traumatic events. Between the time the Thomas Fire started and now there are many interesting stats when compared to the same period a year prior. In the Santa Barbara area the number of homes sold has only decreased 8% while sales volume and median price have increased 27% and 53% respectively due to more higher priced homes selling. In Ventura the number of homes sold has increased 25% along with sales volume and median price both increasing 26% and 7% respectively.
Bahura & Associates looks forward to keeping you posted with the newest developments and most interesting local real estate information throughout the year, thanking you always for your interest and inquiries.
On September 27, 2016 California Governor Jerry Brown signed Assembly Bill AB 2299 and Senate Bill SB 1069 which significantly expands the right of residential property owners to develop “accessory dwelling units” or ADUs, also known as second units or granny flats with kitchens. The new state law requires “ministerial, nondiscretionary approval” of ADUs, with guidelines that supersede pre-existing city ordinances in Santa Barbara.
A significant part of the new law that went effective January 1st eliminates additional parking requirements if the second unit is developed within an existing one-family dwelling or accessory structure, such as a detached garage. This has quite an impact on Santa Barbara since parking is a huge issue the city faces. Other changes the new law makes is a 1,200 sq.ft. size limit, larger than Santa Barbara’s previous limit, provided that the second unit does not exceed 50 percent of the existing legal living area of the principal dwelling. Also, there is no minimum lot size specified in the new law where Santa Barbara County’s previous requirement was 7,000 sq.ft.
On July 24, 2017 Santa Barbara’s Design Board is reviewing a drafted local ADU ordinance that must work with the new state law. The ordinance will then be reviewed by the Historic Landmarks Commission on July 26. Proposed Santa Barbara ordinance amendments include that if an ADU is rented out the rental period must not be less than 31 days, and that the property owner must reside on the property, either in the principal residence or the ADU. It will be important and interesting to see what Santa Barbara can implement and get past the Department of Housing and Community Development in their new ordinance while still complying with the new state law.
To receive future public notices on accessory dwelling units in Santa Barbara you can click here to subscribe to the city’s newsletters and bulletins or e-mail ADU@santabarbaraca.gov. I also appreciate your real estate inquiries and look forward to hearing from you.
Happy Summer Solstice! Summer Solstice happens today at 9:24pm in Santa Barbara, marking the longest day of the year and first day of summer. To celebrate the event Santa Barbara will once again have its traditional Summer Solstice Celebration this Friday through Sunday at Alameda Park downtown, with the main event parade up State Street starting at noon on Saturday, and children’s parade starting at 2pm on Sunday. Click here for more details. Santa Barbara’s Summer Solstice event which has in the past drawn over 100,000 visitors once again ranks as the number one in California, and in the last two years has ranked as one of the top ten Worldwide.
Downtown Santa Barbara has also been a very hot item for real estate this year with 48% less new listings than last year and 3% more properties sold. Currently there are only 15 homes listed in the downtown area with over half already under contract. If you’re looking for real estate downtown or in any other difficult to find area in Santa Barbara please send your inquiries. There are typically several available off-market properties to consider which are in preparation of being listed. I look forward to hearing from you and seeing you in Santa Barbara this summer!
When actor Jeff Bridges listed his beautiful Tuscan ocean view estate on Hot Springs Road in Montecito for $29.5 million in the summer of 2015 he didn’t expect that it would sell for only $15.925 million almost two years later.
A couple of other celebrity estates have recently come on the market in the Santa Barbara area. Ellen DeGeneres has just listed her incredibly restored ocean and mountain view Italianate estate on Hidden Valley Lane in Montecito for $45 million. She purchased the home in 2011 for $16.5 million before restoration and is looking to make a substantial profit. Kevin Costner just listed his 10.25 acre ocean front estate site on Padaro Lane in Carpinteria for $60 million. He purchased the property and 7 acre lot next to it in 2006 for $28.5 million and resold the 7 acre lot for $25 million in 2009.
985 Hot Springs Road – 6 bed 6 bath on 19.5 acres – Listed for $29.5 million – Sold for $15.925 million
2840 Hidden Valley Lane – 6 bed 8 bath on 16.88 acres – Listed for $45 million
2825 Padaro Lane – 2 bed 2 bath on 10.25 acres – Listed for $60 million
It’s a general rule in real estate that if a property is initially listed close to its market value it will end up selling at the best and highest price. It’s when a seller “tests the market” or believes in an inflated value of their property that they can end up selling for a lot less.
A most important part of a chosen agent representative’s job is to accurately assess the value of any property their client is looking to purchase or sell. If you’re active in the local real estate market and would like to know the accurate value of a property I look forward to the opportunity to assist and appreciate your inquiries.
In mid-February the California Economic Forecast Project conducted a 2017 Economic Review at Santa Barbara’s Fess Parker Resort. During the conference predictions were laid out for years 2017 through 2021 with regard to South Santa Barbara County’s housing market. It was pointed out that relying on historical performance to predict future direction is ineffective in today’s fast-moving economy, especially in view of regime changes and global influences. Demand for homes by consumers, supply of new homes, and statewide economic growth are all factors that the project says are considered in its forecasting.
With regard to the 21 principal counties in California the project has unanimously forecasted that all of the markets will have home price gains over the next 5 years. Santa Barbara County is picked to lead the pace with Southern Santa Barbara County price gains driven by a continued lack of inventory and new housing production. Sales volumes on the other hand are predicted to increase only marginally in Santa Barbara’s South County due to high prices pushing some buyers out of the market. The economic project’s home price percentage change forecasts for South Santa Barbara County are as follows: 6.7% increase for 2017, 5.7% increase for 2018, 5.2% for 2019, 4.7% increase for 2020 and 4.8% increase for 2021. Also, sales volume over this same five-year period is expected to slowly increase by around 1.5%.
For the first quarter of 2017 South Santa Barbara County’s median home price has remained unchanged, and sold volume has increased 12%. If the Economic Forecast Project’s predictions come true we should see a steady increase in prices during the rest of the year, and a decrease in number of sales. I look forward to keeping you in touch with the most current market activity and to assisting you with any of your real estate needs. Your inquiries are much appreciated.
In addition to being one of the busiest times of year for the real estate market, springtime brings many other reasons to be out and about in Santa Barbara. This year’s recent rains have complimented the color and fragrance of the area’s beautiful scenery with abundant blossoming flowers, trees and plants. The following list includes some fun activities you may decide to enjoy along with taking in Santa Barbara’s inviting outdoors.
April 7-9 – Santa Barbara Food and Wine Weekend, Bacara Resort and Spa, begins on Friday at 7pm
April 7-9 – Lucidity Festival, Live Oak Campground at 4650 Highway 154 in Santa Ynez, begins Friday at 10am
April 20-23 – Santa Barbara Vintners New Release Spring Weekend, Santa Ynez Valley, begins on Thursday at 11am
April 29 – Founding Day Festival, El Presidio de Santa Barbara, 12-4pm
May 13 – Santa Barbara Wine Country Half Marathon, 3558 Sugunto Street in Santa Ynez, 7am
May 25 – John Legend in Concert, Santa Barbara Bowl, 6:30-10pm
May 27-29 – I Madannari Street Painting Festival, Old Mission Santa Barbara, begins on Saturday at 10am
June 3 – Los Olivos Jazz and Olive Festival, Lavinia Campbell Park in Los Olivos, 1-4pm
For all of your real estate needs this spring e-mail John@SearchSantaBarbara.com. Your inquiries are appreciated!
Currently one-third of home sales nationally are transacted with all-cash, down 4.5 percentage points from a year ago. All-cash purchases hit their last record peak nationwide in January 2011 at 46.6 percent, and during the first three months of 2014 all-cash transactions accounted for 43 percent of national sales. Experts predict that cash sales will fall to a historically normal level of around 25 percent by mid-2017.
In the South Santa Barbara County real estate market all-cash transactions currently only account for 22 percent of single family home sales, down from 30 percent a year ago. Santa Barbara hit its peak of 41 percent in October 2012.
Strict lending standards and high buyer competition are two major buyer stimulants for all-cash transactions. Santa Barbara’s counterbalance is its higher cost of properties which make it more difficult for most buyers to transact with all-cash. The U.S. median sale price for homes and condos last month was $228,900 compared to South Santa Barbara County’s median sale price of $875,500.
Following are the highest all-cash sales that have taken place in Santa Barbara, Hope Ranch and Montecito so far this year.
Santa Barbara – 603 E. Calle Laureles – Sold for $3,005,300
Hope Ranch – 4693 Via Bendita – Sold for $4,631,500
Montecito – 1127 Hill Road – Sold for $12,500,000
It’s typical in Santa Barbara to see the most desirable and/or attractively priced properties receive multiple offers with all-cash quick close terms included. Most often the successful buyer is assisted by a very skilled and experienced local real estate agent who really knows the market and negotiates well. I look forward to your inquiries regarding best properties and strategies for acquisition and appreciate the opportunity to assist.
There are some hot spots leading the way so far this year in the Santa Barbara real estate market. Year-to-date Hope Ranch home sales have seen a 350% increase in number sold and 400% increase in number under contract when compared to last year. In addition, Santa Barbara East area sales and pending sales have increased 31% and 69%, and the Carpinteria/Summerland area has also seen double digit increases of 50% and 42%. The hottest spots for sales and pending sales of condominiums are currently in the areas of Goleta North with 66% and 33% and Santa Barbara West with 11% and 66% increases.
Santa Barbara’s high end Montecito area has seen the biggest decreases this year in sales and pending sales with -58% and -36% for homes and -85% and -60% for condos.
The most notable home sales so far this year in Hope Ranch, Santa Barbara and Carpinteria/Summerland are as follows.
Hope Ranch – 929 Cannon Road – Sold for $4,525,000
Santa Barbara – 401 E. Pedregosa Street – Sold for $2,424,000
Summerland – 2210 Calle Culebra – Sold for $1,350,000
I look forward to keeping you up to date on the hottest areas and property opportunities in Santa Barbara throughout the year. Your inquiries are welcomed and much appreciated.
With many various predictions and differing expectations for the housing market this year Santa Barbara is off to a great start. Year-to-date numbers show that inventory has increased for both homes and condos, 22% and 7% respectively. The number of homes under contract is up 23%, and number of condos sold is up 33%. So far the lower price point market has outperformed luxury sales, with entry level buyers taking advantage of the historically low interest rates still available. If interest rates begin to rise this year as many predict the Santa Barbara real estate market could shift back to seeing more higher-end all-cash purchases and less entry-level financed property sales.
Santa Barbara is also off to a great start this year regarding rainfall after the last several years of drought conditions. Recent rains have brought back the beautiful lushness of the area’s vibrant scenery, with many property landscapes showing more colorfully than ever before. Click here for the county’s yearly rainfall report that’s updated daily.
February also marks the start of Santa Barbara’s famous International Film Festival, attracting numerous celebrities, tourists, and paradise goers to the area. Popular events like this have certainly boosted the visibility and interest level of local real estate in the past. Click here for festival details including appearances by Denzel Washington, Emma Stone, Ryan Gosling, Casey Affleck, Michelle Williams, Isabelle Hubbert, and Jeff Bridges.
This is an exciting time in real estate for high demand markets such as Santa Barbara and I look forward to bringing you the most current information and attractive property opportunities offered throughout the year. As always your interest and inquiries are very much appreciated.
Most predictors point to growth for the U.S. housing market in 2017. One of the most optimistic outlooks has just surfaced from economist and Nobel laureate Robert Shiller who indicates that an upcoming housing boom is not out of the question. To read the full article click here. With slightly rising interest rates it’s pointed out that many buyers may begin to lock in and secure housing before rates go up significantly. Investors are also betting that Trump will follow through on may campaign promises that could fuel the housing market, with backing from the now Republican majority Congress.
Zillow and Redfin are predicting that home values in 2017 will grow 3.6 percent and median prices 5.3 percent respectively, with inventory and number of home sales expected to increase and days on the market for homes expected to decrease.
I look forward to keeping you up-to-date on local offerings, real estate activity and market trends in the Santa Barbara area throughout the new year and appreciate your inquiries.