Santa Barbara South Coast Real Estate Market Report

Great article written by an agent in my office.

August 2012
By
Jackie Walters
Village Properties

Three words can aptly describe today’s South Coast real estate market: Demand outpaces supply! –This state of market fervor certainly applies more to entry-level price ranges than higher priced properties, however, across the whole market, buyers are not finding as many homes to choose from as they would like. Many qualified and motivated buyers who are entering the market are not finding a property to suit their needs in the current active listings, and are forced to rely upon the daily updates for that special new listing, hoping they will not have to endure a multiple-offer situation. Our treasured community is bordered by the Santa Ynez mountains to the North and the Pacific Ocean to the South. With no room to expand, South Coast homes will always be in limited supply. 

Local months of inventory numbers have dropped significantly over the past twelve months and literally plummeted since the real estate doldrums of 2008/2009. As you can see from Table 1, there is currently 3.1 months of inventory market wide. Months of inventory, sometimes referred to as “market velocity,” is a way to compare current pending sales with homes still for sale. It shows the amount of time it would take to sell all available properties, assuming no new listings, at the current pace of sales. The lower the number, the more active the market. Three months of inventory or less is suggestive of a strong sellers’ market; 3 to 6 months is a more balanced market; 6 to 9 months of inventory is indicative of a buyers’ market; 9 months of inventory or more is a soft or weak market that is highly favorable to buyers.

As a short retrospective, our local real estate market showed signs of weakening in 2005, which was initially limited to entry-level housing in Goleta and Carpinteria. Foreclosures began to steadily increase in those communities, and through 2006, many bank-owned properties languished unsold. The median sold price for houses and PUDs in the City of Santa Barbara maintained a peak of approximately $1.2 million from 2005 through 2007 following several years of strong sales and appreciating values. Over the same period, neighboring Montecito, an area with a much higher percentage of more expensive homes, continued an upward march in median and average sold prices, going up around 10% per year through the end of 2007. As prices of higher priced homes peaked; entry-level housing began to show signs of a slow recovery, although prices would continue to slide. 2008 through 2010 saw values of mid and upper priced properties sink considerably, by as much as 30-40%. The first quarter of 2010 saw a reemergence of high-end estate sales, a market that had been virtually at a standstill. Fast forward, entry-level housing has had strong sales for the last two years and the past 12 months has seen steady to good sales numbers in almost all other price ranges.

Looking at the charts, Table 1 shows 856 closed escrows for houses and PUDs (Planned Unit Development), year to date through August 2012 compared to 622 for the same period for 2011, an increase of over 37%. Looking at the median sales price for August, again for houses and PUDs, this stands at $827,500, up from the 2012 year to date number of $799,000. 2011 year to date closed median price, through August, was $816,000, showing evidence that prices do seem to be “bumping off the bottom.” Another look at months of inventory numbers shows very active markets in Goleta, with 1.4 months of inventory and Santa Barbara with 2.1 months of inventory. Montecito at 7.1 months of inventory for the month of August 2012, shows a steady market with 22 homes going into escrow and 22 homes closing escrow. Very encouraging numbers for a market which was previously stymied at more than 20 months of inventory.

New listings are down year to date. House and PUD new listings through the end of August 2012 are at 1,231, a 7.2% decrease from 1,327 for the same period one year ago. An astounding statistic is the dollar volume of sales, which at $193,774,009 for the month of August 2012, is up from $115,307,517 for the same month one year ago, a staggering 68% increase. This clearly demonstrates the strong uptick in sales in the mid and upper price ranges. Another interesting barometer of the buyer/seller teeter-totter; sellers are getting, on average, 95.37% of their asking price (last listed price before home entered escrow, not “original” asking price), as compared to 93.76% one year ago. This translates into an additional $16,100 for the seller of a $1,000,000 home. Not a huge amount, but certainly an improvement.

Condo sales have also strengthened further. For the month of August 2012, there was only 1.2 months of inventory for South Coast condos in all price ranges. Sixty-three condos entered escrow in August, leaving only 73 condos remaining unsold. The median price for condos is $383,000, slightly down from the August 2012 year to date number of $400,000. The median price for August 2011 year to date was $425,000, a 5.9% drop year over year.

Where are we with “distressed sales”? The impact of bank-owned and short sales is still a factor in keeping prices at what are now 2002 to 2003 level prices. However, these “bank” sales only add fuel to today’s active market and are being snapped up by eager buyers, as they are most often priced aggressively.

Back to the charts, Table 2 shows quite dramatically how the number of houses, PUDs and condos entering escrow continues an upward trend. Likewise, the number of closed escrows is up significantly as compared to the five year average of closed sales for every month going back to November 2011. Table 3 shows the highest percentage of sales for houses and PUDs occurring in the $500,000 to $800,000 price range; for condos, the most active range is $200,000 to $400,000.

Lastly, interest rates remain at the lowest rates for decades, with 5-year fixed conforming loans at 2-3%, conforming 30-year fixed rate loans under 4%, and even 30-year fixed rate jumbo loans under 5%. Low interest rates coupled with low home prices mean “low” mortgage payments, often less than renting a similar property. I heard it put this way recently, “if 80% of the reasons seem to be in place to buy, then buy ..” or put another way, “Do all the stop lights on the way to LA need to be green before you go to LA?..” 

This is an exciting time to invest in Santa Barbara South Coast residential real estate. Contact a Realtor to advise you and help you secure this wonderful long term investment.

Help Save the Gaviota Coast-Eco friendly surfboards project

Ryan Lovelace, a Santa Barbara surfboard shaper is planning to have an art show/benefit featuring work from local artists. All profits from the show will be donated to the Save Naples Coalition.

Ryan is not only working on reducing the toxins that are created while shaping surfboards but also taking action to help protect the one and only- Gaviota Coast. With your donation Ryan will build his first full line of eco friendly surfboards, then auction them off at the benefit. Remember - all profits go to the Naples Coalition. Click here for more information on Ryan, his fundraiser and how to dontate. PS. this fundraiser ends on May 25th, so act now!
 

End of the Year Sales for Santa Barbara

 Click HERE to enlarge image.

Doing a remodel? Not know what to do with your old materials?

Santa Barbara's Demo 2 Design specialize in architectural reuse. Materials may include doors, windows, plumbing and lighting fixtures.
Marborg and Demo 2 Design have recently teamed up. Now your materials from deconstruction can be picked up from your site, diverting it from the landfill and giving it the chance of another life in someone else's home.
Click here for hours of operation or to shop Demo 2 Design's inventory.

Earth Day in SB!

Those of you who have attended know that Earth Day in SB is huge.

With over 30,000 attendees and 250 vendors there is a ton to see, learn and do! Enjoy live music (this year the headliner is the Wailing Souls and special guest is Daryl Hannah) and tons of activities - it is worth checking out!

Click here to check out event highlight's & schedule on the CEC's website.

Recycle Your Christmas Tree!

Your tree must be free of ornaments, tinsel, etc to be recycled.

If you live in a single-family home in Carpinteria, Goleta, Hope Ranch, Isla Vista, Montecito, or Summerland, or in the Cities of Santa Barbara or Goleta, and you are a customer of Allied Waste or MarBorg, you can place your tree in or next to your green waste container or next to your trash container on your collection days.

Where to drop off:
South Coast Recycling & Transfer Station 4430 Calle Real, Santa Barbara Open Monday through Saturday from 7am - 5 pm.
Questions?
Call the County Public Works Dept. Resource & waste management 805.882.3616 or visit Less is More

*image courtesy of tinyoranges.com

New Locale for Santa Barbara Farmer's Market

Who: Santa Barbara Farmer's Market

Where: Harding Elementary School, 1625 Robbins street

When: Every Wednesday (rain or shine) from 3:00 - 6:30pm

More Information: 805-962-5354, or email sbcfma@rain.org.

Yes, 'tis true...

Another organic/natural food vendor is due to open in Santa Barbara;

Who: Whole Foods

When: Fall of '09

Where: State and Hitchcock (where the Circuit City used to be)

Just a reminder that nothing is better than directly supporting your local farmers. So don't forget about the farms and markets we have in town! For locations & times visit the SB Farmers Market website.

Community Supported Agriculture ~ CSA!

If you don't have the time to start up your own veggie garden, Community Supported Agriculture (CSA)
is a great alternative.
What is CSA?
A CSA is like a co-op, where you pay to become a member and once a week pick up your share of the latest harvested produce.

Pros
1) Knowing the origins of what you put in your body.
When you support your local CSA you know exactly where your food is coming from. Did you know that in the U.S. food travels an average of 1,500 MILES from crop to kitchen?! That's roughly the distance between California and Oklahoma. Transportation of produce in the U.S. accounts for 925 BILLION POUNDS of carbon dioxide emissions each year! Wow. I'd say that by the time we are cooking up our produce, it’s no longer what you'd call "fresh." And for those who have forgotten, the taste of an apple, strawberry, or green bean is SO much sweeter & full bodied when freshly picked.

2) Eating what’s in season.
By joining a CSA you eat what is in season. You know that what is about to go in your stomach is fresh and has not been artificially altered to grow out of its natural season.

3) It’s better for the environment.
As stated in Delicious Living magazine, "organic farming has the potential to use one-third fewer fossil fuels than conventional farming." Organic farming also helps create an increase in soil carbon (=healthy soil).

The more you research organic farming the more environmental and health benefits you will find, but I think that the true benefit is the intrinsic feeling one gets from knowing they are doing something for themselves that is healthier. And when you are eating a plate full of fresh greens, it just feels good.

It’s not always easy switching to a CSA though.

Cons
1) How in the heck do you cook that?
Joining a CSA may take some getting used to, if for no other reason than that you typically don't get to choose the produce you buy. Instead you get what has most recently been harvested. You’ll likely find yourself standing in your kitchen one evening with a few heads of various leafy greens or other veggies that look more like some sort of alien incarnation rather than something you would eat. (My first experience in a CSA I wound up in my kitchen with over a pound of kohlrabi. Kohlrabi??? With a little creativity and perseverance I soon discovered that it makes great pancakes). The coolest part about not getting to choose what produce you purchase is that it broadens your diet (in a healthy way of course) and for those of us that like to cook…well here is your opportunity! So get out there and support your local CSA while eating healthier all at the same time.

2) The Expense
You will find that joining a CSA can be a little pricier than if you were to just keep shopping for your veggies at your local supermarket.


CSA in Santa Barbara:
Fairview Gardens
Other organic farms:
Ebby's Organic Farm
Lane Farms

*Sources:
Cool Foods Campaign
USDA Agricultire Fact Book
photo courtesy of the Fairview Gardens

I have not updated in far too long. But my excuse is valid. Santa Barbara was on fire. Evacuated from my home for 4 days=stressful, BUT my home is unscathed and I am so relieved.
I have been playing catch up this week, but wanted to write about something that has been on the forefront of my mind: LANDSCAPING!!!
I have heard several home survival stories that are attributed to those plump and juicy plants called succulents. Succulents retain water in their leaves which makes them more fire resistant than other plants. These plants also stay healthy with low maintenance (ie; less watering-YEAH we like that!) Also if you ask me, they look awesome. Like a step back to prehistoric times...

For more info on the benefits of designing your garden with succulents please read the Lawn & Garden Retailer article by clicking here.

Also a for quick read with pretty photos; LA Times on succulent gardens

If you have questions or are thinking about redesigning your outdoor space, I am sure that Denise Woolery with Acanthus Design will be able to assist your needs. You will find that many of her designs include succulents...Visit her site (link provided above) for some examples of her unique and beautiful design.

*Image courtesy of San Marcos Growers in Santa Barbara.

Green, Green Everywhere!

Results are in. Earth Day in Santa Barbara a success! Approximately 13,762 people visited the 250 vendors displaying everything from solar panels to the electric Tesla roadster. With the limited amount of time I had to spend at the event, I was able to come across a couple vendors focusing on some very cool projects.

1. Wilson Environmental Landscape and Design is a Santa Barbara based, environmental landscape and design company. They focus (among other things) on SMART irrigation, rainwater and native and edible plantings. Additionally, Wilson & co are developing a program called Home Food Forest, it is an initiative geared toward getting families to turn their backyards into "a complete, organic ecosystem of trees, plants, pollinators, decomposers, soil, water and more."* Why would you want to start a food forest in your backyard?

I am glad that you asked... Reasons that Wilson offers are:

• Connect to your land
• Know where your food comes from!
• Eat organic
• Eat fruits/veggies when they are in season
• these 'forests' can help cool the climate by lowering the carbon footprint that your food consumption causes. For more on this please read "Whole Foods: The whole truth"
  
• Improve your health
• The more trees the more private your home
• You and your children will learn about gardening and food production
• Compost to reduce waste
• You'll spend more time outside

The list can go on and on. A Home Food Forest equals better health, period.

2. Gain Energy Independence!!! Interested in putting up solar panels? California Solar Electric is an Ojai based company that will evaluate your living situation and install 'Sunpower' solar panels. Did you know that you can meet up to 100% of your home's electricity needs with solar and you can eliminate your electric bill? I won't even go into how this helps our environment. There are federal and state initiatives that you can take advantage of! Put up solar panels, Get Money Back!
P.S. In case you weren't convinced that plastic sucks, I encourage you to read the following article posted on the Discovery Channel's website.

P.P.S. The actual Earth Day date is today, April 22nd. But you already know what I say to that; "EVERY DAY IS EARTH DAY!"

*As stated on Wilson's "Home Food Forest" brochure
*logo provided by earthday.net

It's a Commitment!

With many of the local newspapers filling up with advertisements geared towards brides and grooms, I am reminded that wedding season is right around the corner. Myself having 2 friends that will be tying the knot within the next few months, I have let them know about Emily Elizabeth Anderson's 'Eco-Chic Weddings'. Emily reminds us that an environmentally conscious wedding need not equal a less stylish one. Click here if you want to check out Emily's website.











Click on the image to read more about this book.

Another one?!?!?

I was recently introduced to this networking site called Greenopolis. While I don't (yet) personally know anyone on it, I am hoping that it will help keep me abreast when it comes to the increasingly popular 'green' scene.
Click here to check out this site.