Has The Santa Barbara CA. Luxury Real Estate Market Been Effected by the Financial Crisis?
Yes...to anyone who is paying attention and knows this luxury market here in Santa Barbara. For our purposes, I will refer to the the high end luxury real estate market here in the Santa Barbara CA. area as any property over the $5 million price point. Most of our high end luxury market here in Santa Barbara CA. is found in Montecito CA, Hope Ranch CA, the foothills of Santa Barbara, anywhere directly on the water from Goleta to Carpinteria, or any type of extensive ranch / equestrian property. Where we have been: Since 1998, the high end luxury real estate market in Santa Barbara was on a tear, going up anywhere from 10-25% a year. A tremendous investment for anyone with the financial means. Even as the real estate market nationally started to cool in late 2006 and early 2007, the Santa Barbara market overall stayed relatively stable, with our high end luxury market continuing its pace without a blip. In fact, as other parts of the Santa Barbara market started to finally cool and decline in value from early 2007, sales and price increases were very solid in our luxury market throughout early 2008. Finally in August 2008, when all the negative news really started to explode about the state of our economy, our luxury high end market took is first major hit in a decade. Where we are now: From August 2008 through April of 2009, our luxury market has seen a decrease in price from its peak of anywhere from 20-40%. In addition, activity has substantially slowed to about half as many sales when compared to the previous years. Here is a look at some recent statistics: (as reported by the Santa Barbara MLS)
Overall, the high end market today is slower than what we have been used to in the last 8-10 years. Right now, no one knows if we have reached a stable price point yet, but over the last several weeks there seems to be a few more pending/closed sales and price benchmarks being set. For example, just in the last 30 days we have seen 7 properties that are pending sale or that have closed escrow above the $5 Million price point. Further Reading:
- The Secret of Santa Barbara and Montecito Oceanfront Property and Estates
- Montecito California Luxury Real Estate
- Articles About Santa Barbara Oceanfront
- 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