Beach House Anyone? Major Price Cuts and Slow Sales Along Santa Barbara’s Premier Oceanfront

Where have all the good - Oceanfront - times gone?  Slow Luxury Oceanfront Sales One of the major impacts from the Financial Crisis that we have seen here in the last 12-18 months is the slow sales and major price reductions that have taken place within the luxury high-end market here in Santa Barbara, Hope Ranch, Montecito,  and Carpinteria CA. One major part of this luxury market is the true oceanfront and beachfront property here along our coastline. Being a Realtor here in Santa Barbara CA., I am fortunate and privileged to see some very impressive properties sitting atop some of the most amazing coastline parcels in the country.  So amazing in fact, that when many of these properties would come up for sale in the past, I as a Realtor had to be ready to show them quickly since they would often entertain offers within a few weeks even with price tags exceeding $10 Million and more....well at least that was the case from 2000-2007. 2000-2007 During the boom in the real estate market, oceanfront properties here in Santa Barbara were in such demand that most often they would sell within weeks.  Additionally, every several months a new price benchmark seemed to be set.  Even as many of these prices at the time seemed/felt extraordinarily high, offers were still coming.  Money was flowing and the affluent buyers were in search of real estate in prestigious towns such as here on Santa Barbara's gorgeous coast. Here are a few examples of various sales from 2002-2007:

  1. 1616 Shoreline Drive,  Asking Price $2,695,000, Sales Price $2,375,000, Days on Market 74.  Year 2002
  2. 3271 Padaro Lane, Asking Price $5,900,000, Sales Price $4,600,000, Days on Market 76.  Year 2002
  3. 1000 Channel Drive, Asking Price $21,000,000, Sales Price $21,000,000, Days on Market 4, Year 2003
  4. 1815 Fernald Point Lane, Asking Price $4,950,000, Sales Price $4,416,000, Days on Market 1, Year 2003
  5. 4267 Avenue del Mar, Asking Price $12,500,000, Sales Price $15,000,000, Days on Market 27, Year 2004
  6. 3517 Padaro Lane, Asking Price $4,500,000, Sales Price $4,500,000, Days on Market 12, Year 2004
  7. 13 Seaview Drive, Asking Price $3,495,000, Sales Price $3,800,000, Days on Market 11, Year 2005
  8. 4347 Marina Drive, Asking Price $7,950,000, Sales Price $7,750,000, Days on Market 10, Year 2005
  9. 1319 Plaza Pacifica, Asking Price $2,495,000, Sales Price $2,755,000, Days on Market 9, Year 2006
  10. 4310 Avenue del Mar, Asking Price $6,500,000, Sales Price $6,000,000, Days on Market 18, Year 2006
  11. 2375 Finney Street, Asking Price $7,950,000, Sales Price $7,900,000, Days on Market 3, Year 2007
  12. 4025 Bajada Lane, Asking Price $15,000,000, Sales Price $15,000,000, Days on Market 63, Year 2007

2008 - March 2009 Most coastline properties from 2008 and through the early part of 2009 seemed to have experienced one or any combination of the following:

  • Pricing way to high for the current market
  • Sitting on the market for months on end with few showings
  • Seeing major price reductions and still no offers
  • Canceling the listing

During most of this time frame, both prices and overall sales of beachfront property here in Santa Barbara CA. had been hit with hard times, especially from August 2008 through March 2009.  Most sellers during this time had to of been content with accepting offers much lower than the original asking price while other sellers continued sitting on the market for months while simply chasing price reductions. Here are a few examples of various activity from 2008 through April 2009 that stand out with regards to sales price vs. asking price, price reductions and/or extended days on market:

  1. 685 Sand Point Road, Asking Price $12,500,000, Sales Price $7,290,000, Days on Market 325, Year 2008
  2. 2375 East Finney Street, Asking Price $11,500,000, Sales Price $8,000,000, Days on Market 96, Year 2008
  3. 3447/3445 Padaro Lane, Asking Price $9,950,000, Sales Price $6,350,000, Days on Market 265, Year 2009
  4. 8 Seaview Drive, Original Asking Price $5,900,000, Last Asking Price $4,950,000...canceled listing, Days on Market 328, Year 2008

The Present Only recently in the last 6-8 weeks have we seen several decent sales along our coastline that once again seem to represent price benchmarks for our oceanfront property.  New listings that are coming on at these "price benchmarks" are also once again seeing strong activity and offers.  Only time will tell whether these last several weeks will represent a stabilizing of prices in this part of our luxury market. If you are interested in learning in more detail about our oceanfront property and/or would like to see a list of current oceanfront homes on the market and/or a true market analysis please feel free to contact me.  I look forward to hearing from you. Further Reading:

  1. The Secret of Santa Barbara and Montecito Oceanfront Property and Estates
  2. Montecito California Luxury Real Estate
  3. Articles About Santa Barbara Oceanfront
  4. Santa Barbara Luxury Real Estate - Oceanfront and Beachfront

For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty. Thank you for reading.  I hope you find Santa Barbara Real Estate Voice informative.  Please feel free to contact me or comment below with any thoughts.  Subscribe to Receive Personal Listings of Santa Barbara Real Estate Search The Santa Barbara Area MLS

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