Real Estates

REAL ESTATES

Cover Photo: www.OakviewMontecito.com – 6bd/8 full baths, 3 half baths – $47,000,000 – American-style manor built in 2009

by Don Nulty on 3.4 acres with ocean views. The 10,000 sq. ft. residence amenities include a piano bar, family and commercial kitchens, two offices, theater, gym, wine cellar, and staff wing, a 2bd guest house, 1bd pool house, pool/spa, sports court, 7-car garage – listed by Suzanne Perkins (805) 895-2138 • calDRE# 01106512 – (photo by Jim Bartsch )

DISTINCTIVE SANTA BARBARA PROPERTIES

w w w. S U Z A N N E P E R K I N S . c o m

Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc. | CalDRE # 01106512

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MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

RESIDENTIAL BROKERAGE

OCEAN & MOUNTAIN VIEWS IN CENTRAL MONTECITO M U LT I P L E G U E S T Q U A R T E R S / 3 . 4 A C R E S

$18,5OO,OOO

RANDY SOLAKIAN CAL BRE 00622258

805 565/2208 DEANNA SOLAKIAN WILLIAMS CAL BRE 01895788

805 565/2264

SUMMER 2018

M O N T E C I T O E S TAT E S. C O M

The Premiere Estates of Montecito & Santa Barbara

• REAL ESTATES •

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Editorial

Just sold 125 W Mason St, Santa Barbara

by James Buckley

House Poor, Climate Rich

T

Kristopher, Caitlin, and Francois represented the seller in the sale of this 5-unit West Beach apartment. Listed at $3,565,000

If you are thinking of buying or selling investment property, call us today!

Kristopher Roth 805.898.4361

kris@hayescommercial.com

Caitlin McCahill

Francois DeJohn

caitlin@hayescommercial.com

fran@hayescommercial.com

805.898.4374

805.898.4365

HayesCommercial.com | 222 E Carrillo St, Suite 101, Santa Barbara, California

a t r a D i t i o n o f e xc e l l e n c e i n M o n t e c i to & s a n ta B a r Ba r a r e a l e stat e

here’s nothing that will make you feel poorer than perusing the highend homes for sale in the Friday edition of The Wall St. Journal. Or heck, pick up a paper in Atherton, San Francisco, Pacific Palisades, Beverly Hills, or any upper-end community in Napa, Sonoma, Oakland, or even Oxnard.

Everything for sale comparable to what you’d want to live in will be 20% to 100% more expensive than Montecito. Which tells me only one thing: Montecito is underpriced. Even when compared to similar properties in Goleta, San Roque, the Mesa, Hope Ranch, the Upper East (all of which are also terrific places to live, but hey, we are the Montecito Journal), Montecito compares well.

Now, of course, the tragic events of December 2017 and January 9, 2018, have caused a pause in the inexorable rise in real estate values, particularly in Montecito, where we lost 23 precious lives and nearly 400 homes to fire, flood, and mountain debris. No one needs to be reminded of that. But, what people perhaps do need to be aware of is that this once-in-a-hundred or 500year event is over, and anything remotely similar is unlikely to reoccur in our lifetimes. It could happen, but I’d put the probability somewhere near a tsunami and way less likely than, say, a Southern California earthquake.

Things do happen, so let’s be realistic.

In the meantime, it’s pretty much a buyer’s market in Montecito, so if you are searching for a beautiful home in a beautiful area with a beautiful yearround climate, top-rated public and private schools, in a community that boasts social and artistic amenities found in cities and towns 10 times – no, make that a hundred times – our size, then this is your chance. Montecito’s window of opportunity will close at some point and a lot of that will depend upon the next rainy season or two, but when it does it will likely slam shut for a good long time.

I could be wrong, but let’s compare:

Pacific Palisades

Here’s a cute little place in Pacific Palisades. It’s a “cozy” 70-year-old (1948) 2-bedroom, 2-bathroom home with 1,443 sq ft of living space on “a large 6,824sq-ft lot.” Asking? $2,390,000. Nearby are several homes of similar size and even higher price tags: 3 bd, 2 bath, 1,301 sq ft, $2,850,000; 3 bd, 2 bath 1,914 sq ft, $2,600,000; 3 bd, 2 bath, 1,699 sq ft, $2,749,000. All three homes are on smaller lots than our 6,824-sq-ft spread that, to be fair, is “Perfect for owner-user to fix up and remodel or someone to develop.”

Aspen, Colorado

All right, you’ve had it with the Central Coast and even Montecito. Out of California, join the red, white, and blue wave and park your butt in, let’s say Aspen, which we’ve got to admit is a pretty cool town (especially in winter).

And, you want a bigger home. Fifteen-hundred square feet just doesn’t cut it. Here’s a 5-bedroom, 4-bath beauty with 3,297 sq ft of living space, a 3-car garage on a “rare” 9,148-sq-ft lot. Asking? $6,500,000. The nice thing here is “the home lives beautifully as-is or can be brought up to a more contemporary standard for a refined living experience.” Other nearby homes include a 4-bd, 4-bath, 3,157-sq-ft abode at $6,750,000, and a 4-bd, 3-bath, 3,117-sq-ft beauty at $6,200,000.

Jo h n Mc G owa n & As h l e y McG owan 8 0 5 .5 6 3 .4 0 0 0 w w w .M c G o wa n P a r t n e r s . c o M

c a l Dr e 00893030/02041055

A Fine Neighborhood

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

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MONTECITO JOURNAL

Pick a high-end location anywhere in the country where you think you’d like to live, and you are likely to find you have been priced out of most of those markets. In the meantime, there’s plenty to choose from right here in your own backyard.

Do your own research, and you will discover that, unless you choose to move to Ohio, Nebraska, or even Texas (and we have nothing against any of those places), you’ll be hard-pressed to find a better deal than (dare we say it?)

Montecito, where an acre or more is common, privacy is easy to find, and prices are attractive.

And, should you decide to buy here, we’ll just say for the record: Welcome to the neighborhood (and what a fine neighborhood it is).

•MJ

• REAL ESTATES •

SUMMER 2018

700 EAST MOUNTAIN DRIVE | $10,250,000

3077 HIDDEN VALLEY LANE | $6,650,000

5372 RINCON BEACH PARK DRIVE | $4,250,000

4691 VIA ROBLADA | $3,650,000

2637 FREESIA DRIVE | $3,095,000

visit

MONTECITOFINEESTATES.com MK PROPERTIES 805.565.4014 associates@marshakotlyar.com Ranked #4 Berkshire Hathaway Agent Nationwide CalDRE# 01426886, 01930309, 01317331

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

5

REAL ESTATES

by James Buckley (photos by David Palermo)

A Beautiful Piece of History

The living room features a Michael D’Angelo-designed maple floor, complemented with mahogany and ebony framing and a central skylight (one of 12); in the back is a fountain that once brought a cascade of water into what was an indoor pool and continued out to what had been an outdoor pool, and down farther to another cascading waterfall, still extant on the neighbor’s property The front of the 6,350-sq-ft Francis Underhill designed former pool pavilion has been restored to its original look, exposing all the pillars and the rows of 100-year-old casement windows, which themselves are as clear as the day they were made. The structure is made of poured concrete and is similar in many ways to the Bartlett polo house, also a poured-concrete structure, on Middle Road. The entire 1.445-acre property sits on mostly flat mesa-like land.

T

here is nothing quite like this 6,350-sq-ft former “pool pavilion,” designed by Francis Underhill, on the market here or anywhere else in the Santa Barbara area, at least nothing I’m aware of and... and I can say this because I am not

in the real estate business and have no stake or interest in this property... it could not be reproduced anywhere near the asking price of $5,495,000. It’s been on the market for only a month and may already have an outstanding offer, but if it doesn’t and you can

afford a $5+ million home, it is most certainly worth looking at.

This former pool pavilion was just a small part of the once-fabulous Knapp Estate, but the state of preservation of this 100-year-old structure is remarkable.

The “pavilion” was built – along with the main house and the rest of the buildings and landscaped grounds – in 1918, all part of the giant Francis Underhill-designed Knapp Estate,

whose main residence still exists nearby. The property was split into multiple lots in 1947 and the pavilion converted to a residence in 1950; by 1961, it sported a Mansard-style roof and its prominent front columns hidden behind shutters and wrought iron. In other words, the building was “modernized.”

The current owner’s father-in-law bought the house in 1986 and added a

REAL ESTATES Page 144

Montecito Bank & Trust

Mortgage

7/1 ARM

7 year fixed rate / Adjusts every year thereafter

Rate for months 1–84

3.625%

Variable Rate for months 85–360

APR

5.000%

4.365%

Variable Rate

Payment Example Initial Monthly Principal & Interest Payment

$3,420.38

For months 1-84

Monthly Variable Principal & Interest Payment

$3,905.21

For months 85-360

Please note: • Adjustable Rate Mortgage (ARM) interest rates and payments are subject to increase after the initial 7-year fixed rate period based on the then-current financial index plus margin.

Payment amounts shown do not include required property taxes and insurance. Your total monthly obligation will be greater. Lifetime cap 5%, first adjustment cap 5%, 2% annual caps thereafter. This offer requires automatic payment from a MB&T deposit account.

• Example based on a loan of $750,000 for the purchase of a primary residence with loan-to-value (LTV) of 70% and excellent credit history. Maximum LTV 80%.

• All rates and terms are effective as of 08/24/18 and may change at any time. APR shown assumes no increase in the financial index after the initial fixed rate period. Your APR may be higher based on credit and property approval. Subject to credit approval.

Additional Rate Discounts may apply – please contact your Loan Originator.

montecito.bank/mortgage • homeloans@montecito.bank

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MONTECITO JOURNAL

NMLS ID#: 472185 • REAL ESTATES •

SUMMER 2018

NEW LISTING

•

2029 Boundar y Drive

•

Birnam Wood, Montecito

This traditional-style Birnam Wood home, designed by Peter Walker Hunt and resting on nearly an acre, presents a tranquil ambiance loyal to the exclusive enclave’s lifestyle of casual sophistication. The beautiful living room, for example, emanates spaciousness and light thanks to its soaring ceiling, clerestory windows, white stone fireplace and French doors opening to an intimate terrace. The view is of lawn, mature oaks and impeccable gardens. Entered through dual archways, the formal dining room hosts a stunning chandelier and French doors to the terrace. The bright, airy kitchen features a tray ceiling and multiple windows, including those lining the informal dining bay. High-end appliances, abundant cabinets and a versatile center island complete the culinary center. Nearby, the welcoming family room offers a wall of built-in cabinetry and French doors to a terrace, while a kiva fireplace stands ready to warm any chilly Montecito nights. Every room has doors to the gardens, most living areas feature wide-plank hardwood floors, and all 3 bedrooms host baths en suite. Outside, flagstone walking paths meander through tasteful landscaping complemented by picturesque oaks, and provide glimpses of the adjacent 13th fairway of the course at world-class Birnam Wood Golf Club.

Of fered at $4,695,000 805-886-9378 Cristal@Montecito-Estate.com www.Montecito-Estate.com

Community Based, Globally Recognized

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. CalDRE 00968247

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

7

Real Estate Snapshot

McGUIRE & WESTLOTORN FINE HOMES | ESTATES | RANCHES | LAND

Kelly Mahan Herrick

Kelly is a licensed realtor with Berkshire Hathaway HomeServices, and a member of the award-winning Calcagno & Hamilton Real Estate Team. She can be reached at Kelly@homesinsantabarbara.com

A Market in Transition

“W

1647 POSILIPO LANE - A, MONTECITO Offered at $2,000,000 Relax & enjoy strolls on Miramar beach from this rarely available 3Bd/3Ba town-home in Montecito Estates. Experience the carefree lifestyle of living by the sea with lovely ocean views, hardwood floors, cozy fireplace, and oversize 2-car garage. Located next to the new Miramar Beach Resort for the best in luxurious beachside living!

MAURIE McGUIRE & SCOTT WESTLOTORN 805.403.8816 | 805.403.4313 www.MontecitoLand.com CalRE# 01061042 # 01875690

COLDWELL BANKER RESIDENTIAL BROKERAGE The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company. ©2018 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo service marks are registered or pending registrations owned by Coldwell Banker Real Estate LLC.

Montecito

hat’s going on in the real estate market?”

It’s a question agents field on an almost-daily basis, and as of late, my answer to my clients and others is that we are in an adjustment period, with the market, in general, feeling a period of softening.

The number of properties sold in the first half of the year is down 9.1%, from 583 year-to-date in 2017 to 530 this year.

July’s numbers also showed a decline: 131 homes, condos, and planned unit developments (PUDs) closed this July, compared to 142 in July 2017.

Encouragingly, August numbers as of August 27 show 115 sales, which is up from 109 in August 2017.

Sales and Sale Prices

The Santa Barbara Multiple Listing Service numbers earlier this month giving perspective of how today’s mar-

ket numbers compare to past years. At the half-year mark, Santa Barbara-area median sales price for single-family homes, estates, and PUDs, was $1,257,500, which is up slightly from last year ($1,250,000). This is the second-highest median sales price in 17 years; in 2007 the median sales price was $1,262,500, which marked the height of the market before the “Great Recession” that ensued after the bursting of the housing bubble in 2008.

Median list price and the number of properties that went into escrow are both down, which tells me some sellers are feeling the tepid temperature of the market and reducing their prices to entice buyers. The median list price YTD in 2018: $1,280,00, compared to $1,495,000 in 2017. This is a 14.4% decrease. Number of pending properties is also down 5.3% (591 in

SNAPSHOT Page 104

Montecito | Open Sunday 2-4PM

E STAT E PA RC E L

C O N T E M P O RA RY E STAT E

850 San Ysidro Road

1167 Dulzura Drive

Stunning ocean and mountain views abound from this nearly flat, 2+/acre parcel in the heart of Montecito’s Golden Quadrangle.

Dramatic remodel using top quality finishes throughout this single level 4 bedroom, 2.5 bath home in a convenient Montecito neighborhood.

Offered at $4,400,000

Offered at $3,250,000

SANDY STAHL

DRE: 1040095 | 805.689.1602 Sandy.Stahl@sothebyshomes.com Santa Barbara Brokerage | Santa Ynez Valley Brokerage | Montecito Brokerage Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc. SIR DRE# 899496

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MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

MONTECITO COMPOUND MONTECITO, CALIFORNIA

This magnificent 2.5 acre estate is located in a prime area of Montecito, and offers serene mountain and ocean views. Set behind tall gates, the remodeled home is surrounded by breathtaking gardens, with a vanishing-edge pool and picture postcard ocean vistas. Features of the main house include an impressive entry hall, a Great Room with beamed Cathedral ceilings and cozy fire-side seating, formal dining, a Master Suite wing, and a separate family wing with three en suite bedrooms, a media room and a library. The kitchen is an exquisite blend of old world country charm and state-of-the-art modern convenience. The grounds include a fitness facility, a one-bedroom guest cottage, and a three bedroom staff cottage. Offered at $19,500,000

GARY GOLDBERG GRI, CRS, Owner/Broker 805-455-8910 www.garygoldberg.net gary@coastalrealty.com

ASK ME FOR THE LINK TO THE 3D INTERRACTIVE TOUR

CalDRE #01172139

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

9

SOUTH SANTA BARBARA COUNTY RESIDENTIAL STATISTICS

In the last few weeks, we’ve seen an uptick in inventory, and I feel confident saying that the market is shifting from a sellers’ market to a buyers’ market, at least in certain price points and in certain neighborhoods.

The sweet spot in our market so far this year has been properties priced between $700K-$1M and $1M-$2M. The $700K-$1M segment is up significantly this year, with 244 units sold in the second quarter, compared to 133 in the same time frame last year. From $1M-$2M, we saw 303 sales, compared to 289 in 2017 for Q2.

On the flip side, we saw stark drops in the number of homes sold in the higher price ranges, with the exception of properties selling for more than $7M, where we saw a bit of a boost (11 sales versus 9 in Q2 of last year). Just this month, we saw the closing of six high-end properties over $6M, including four Montecito properties ranging from $8.3M to $16.3M. These sales will serve to boost our numbers for Q3.

What’s Happening in Montecito

May marked the first sale of a home destroyed in the Thomas Fire; a 4-acre property on Park Hill Lane closed for $2,050,000. We’ve also seen a few private sales of properties affected by the mudslides, most of which were neigh-

SNAPSHOT Page 184

10 MONTECITO JOURNAL

$724,000 Median Sales Price

Carpinteria 3 Goleta 28 Montecito 12 Hope Ranch 3 Santa Barbara 44 Summerland 1

SINGLE

92 Single Family Sold

69 Condos Sold

Carp $661,400 | $585,000 Gol $681,703 | $680,250 Mont $1,523,800 | $1,440,000 Hope Ranch n/a SB $877,462 | $801,250 Summ $910,000 | $910,000

Total Sales

Carpinteria 5 Goleta 32 Montecito 5 Hope Ranch n/a Santa Barbara 26 Summerland 1

SFR/PUD

72

161

July ’18 v July ’17 (+7%)

CONDO

Inventory 5.22 month supply

57

57%

5.5%

2018 69 Total Sales 2017 44 Total Sales

July ’18 v. July ‘17

Sale Price Avg. | Median

Average Days on Market

July 2018

Condominium

Carp $1,134,333 | $1,150,000.

Gol $1,006,750 | $902,500 Mont $3,176,250 | $2,945,000 HR $5,558,333 | $3,200,000 SB $1,300,489 | $1,216,500 Summ $1,800,000 | $1,800,000

July 2018 SALES

CONDOMINIUM

July 2018

Sales Avg | Median

SINGLE FAMILY

$1,172,000 Median Sales Price

$818,326 Average Sales Price

July 2018 SALES

Looking at Condos

Condo sales in the Santa Barbara area market remain strong in lower price points. Numbers are up in multiple categories, including properties that went into escrow, number of sold properties, median sold price, average sold price, and total sold volume.

Alternatively, the number of new listings and total active listings are up (377 this year vs. 306 in 2017), which increases competition for buyers and may drive down prices. We are also seeing a major stall in high-end condo sales, over $1.5M; only three condos have closed in the last three months.

$1,592,212 Average Sales Price

JULY CONDOMINIUM

Certain Price Segments Remain Strong

CONDOMINIUM

www.fidelitysb.com | www.chicagotitlesb.com

2018

2018 vs. 624 in 2017).

This is a combination of several factors: the Thomas Fire and subsequent mudslides that impacted more than 400 homes in Montecito, an increase in interest rates, new tax laws that make homeownership less beneficial, and a softening of the market on a state-wide level. Recent data shows that home and condo sales in Southern California dropped 11.8 percent, as prices hit a record high.

SINGLE FAMILY

SNAPSHOT (Continued from page 8)

13%

2018 $818,326 Avg Price 2017 $866,432 Avg Price

2018 $724,000 Median 2017 $639,500 Median

Q2 Price Range: Volume Price Range

2015

0-2,000,000 2,000,001-4,000,000 4,000,001-6,000,000 6,000,001-10,000,000 July ’18 v. July ‘17 10,000,001-Up

Single Family

43 42

2016

2017

44

35

42

44

-14%

20

27

2018 92 Total Sales 13 7 2017 107 Total Sales 7

4

2%

17

2018 $1,592,212 Avg Price 9 2017 $1,561,836 Avg Price 2

2018

2.4%

17 10 5 4 3

2018 $1,172,000 Median 2017 $1,145,000 Median

Montecito Price Range by Year 50 45 40 35 30 25 20 15 10 5 0

2015

2016 0-2,000,000

2,000,001-4,000,000

• REAL ESTATES •

2017 4,000,001-6,000,000

6,000,001-10,000,000

2018 10,000,001-Up

SUMMER 2018

NEW LISTING • 1404 Greenworth Place • Offered at $2,749,000 Resting on a quiet cul-de-sac in the much-loved Montecito Hedgerow neighborhood, this recently redesigned and tastefully upgraded home offers everything required of a perfect family residence while providing an excellent venue for entertaining. With 4 bedrooms and 3 bathrooms in the main house, and 3 bedrooms and 1.5 bathrooms in the attached guest apartment, there is plenty of room for relatives and friends. Location is yet another wonderful feature of this special residence, considering it is just minutes to Montecito Union and Laguna Blanca schools, and close to Miramar Beach and the new Rosewood Miramar Beach Hotel.

Cristal Clarke

805-886-9378 Cristal@Montecito-Estate.com www.Montecito-Estate.com

J.J. Gobbell

805-403-5785 JJGobbell@bhhscal.com www.EstatesofSantaBarbara.com

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. CalDRE 00968247, 02063124

TIM TAYLOR

Your Experienced Local Mortgage Lender • 2017: No. 44 Mortgage Loan Originator in America $114 Million in funded loan volume – National Mortgage News • 2016: No. 45 Mortgage Loan Originator in America $156 million in funded loan volume – Mortgage Executive Magazine

SPECIALTIES INCLUDE

• • • • •

ESTATE LENDING* PRIVATE MONEY SOURCES UP TO $20 MILLION* INVESTMENT PROPERTIES BRIDGE LOANS FIRST-TIME HOMEBUYERS

CALL ME TO LEARN MORE ABOUT ANY OF OUR HOME FINANCING SOLUTIONS.

TIM TAYLOR | Mortgage Loan Originator, NMLS #256661 805.978.5724 | Timothy.Taylor@homebridge.com *For these loan programs we are a Mortgage Broker only, not a mortgage lender or mortgage correspondent lender. We will arrange loans with third-party providers, but do not make loans for this program. We will not make mortgage loan commitments or fund mortgage loans under this program.

Homebridge Financial Services, Inc.; Corporate NMLS ID #6521 (www.nmlsconsumeraccess.org); 194 Wood Avenue South, 9th Floor, Iselin, NJ 08830; (866) 933-6342; Licensed in all states but UT. Licensed by the Dept. of Business Oversight under the CA Residential Mortgage Lending Act. Branch address: 3780 State Street, Suite C, Santa Barbara, CA 93105. Branch NMLS# 1563673. This is not an offer for extension of credit or a commitment to lend. Rev 8.22.18 (0118-2097b); LR 2018-54

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

11

Up to $10,000 off select move-in ready homes* Live the sweet life & move into a new CalAtlantic home this summer!

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map not to scale

217

*Offer available on select homes as determined by Lennar, for fully executed purchase agreements dated between 6/22/18 and 8/31/18, and you must close and fund no later than 9/14/18. Offers, incentives and seller contributions are subject to certain terms, conditions and restrictions, which may include the use of designated lenders and closing agents. Certain incentives could affect the loan amount. Offer good for a limited time only. Lennar reserves the right to change or withdraw any offer at any time. Price is subject to change without notice. Stated dimensions and square footage are approximate and should not be used as representation of the home’s precise or actual size. Any statement, verbal or written, regarding “under air” or “finished area” or any other description or modifier of the square footage size of any home is a shorthand description of the manner in which the square footage was estimated and should not be construed to indicate certainty.

Photographs are solely for illustrative purposes and should never be relied upon. All maps are not to scale and are for relative location purposes only. Existing and proposed amenities for the community are subject to changes, substitutions and/or deletions without notice. Lennar makes no representation or guarantee that the community or any amenities will be built out as currently planned. Visit Lennar.com or see a Lennar New Home Consultant for further details and important legal disclaimers. This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2018 Lennar Corporation. All rights reserved. Lennar, the Lennar logo, CalAtlantic Homes and the CalAtlantic Homes logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Lennar Homes of California, Inc. License #728102. Lennar Sales Corp. - Broker. DRE License #01252753. CalAtlantic Group, Inc. DRE License #02058246. Ryland Homes of California, Inc, 00352900. CalAtlantic Group, Inc., 641665. Ryland Homes of California, Inc., 54648. Standard Pacific of Orange County, Inc., 923048. BMR Construction, Inc., 830955. 8/18

12 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

MAGNOLIA MANOR W W W. M O N T E C I TO M A G N I F I C E N C E . C O M

FOR SALE OR FOR RENT! 2900 SYCAMORE CANYON ROAD Offered at $4,500,000 • Available for rent for $16,500 per month A special opportunity lies in this contemporary Tuscan smart house. Movement is fluid throughout this single level home with shared areas and three newly-remodeled bedrooms, two with fireplaces. The master suite is distinct from the rest with not only his and her closets, but also his and her Carrera marble bathrooms. Several skylights light the warm walnut flooring and high-quality appliances of the spacious chef’s kitchen.

The living room is elegant yet comfortable with a marble fireplace and plentiful French doors leading out to immaculate grounds including a pool, spa, fire pit and plenty of space for entertaining. Gated in an exclusive area of Montecito within the Cold Spring School District, this singular home remains convenient to the Upper and Lower villages.

Offered at $35,000,000

For more information,Nearlygo to www.MaryCWhitney.com five glorious landscaped acres • Sweeping coastal views • Gracious Robert Webb Designed compound • Golden Triangle privacy

1

MW

FINE HOMES & LUXURY ESTATES

MARY WHITNEY Luxury Property Specialist

805.689.0915 MarWhitSB@gmail.com MARY WHITNEY Luxury Property Specialist www.MaryCWhitney.com (805) 689-0915 DRE 01144746 MWhitney@BHHSCal.com

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources andwww.MaryCWhitney.com will not be verified by broker or MLS. ©2016 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. CalBRE 01317331

no.

the power of TEAMWORK

RISKIN PARTNERS remains the #1 real estate team in the Santa Barbara MLS. YEAR TO DATE, the Partners have CLOSED in excess of $97M.

SUMMER 2018

• REAL ESTATES •

DINA LANDI SARAH HANACEK JASMINE TENNIS ROBERT RISKIN

cal bre 01206734

cal bre 01815307

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REAL ESTATES (Continued from page 6) The family room features another Michael D’Angelo hardwood flooring creation, along with walls of bookcases, high ceilings (most are 14 feet high), a large skylight, and views of the ocean

The kitchen is modern, large, and attractive, with a 5-ft x 6-ft center island, a six-burner stovetop, double-oven, a small anteroom that could be a pantry or home office that has its own bathroom with a tub-shower combination

new exterior pool and decking in 1988. In 1992, he began restoring the rest of the exterior to its original plan, removing the Mansard roof that had been added and exposing the pillars and poured concrete walls that originally dominated the look.

Currently, there is a new electrical system, new HVAC, lighting, and a sound system. Additions include an artist studio adjacent to a back patio

(the current owner’s mother sculpted here). The two-story separate guesthouse near the front gate has a kitchen, living room, bathroom, and fireplace on the first level; bedroom upstairs and a small terrace. Surrounding foliage features oak, monkey pod, palm and cypress trees.

The rest of the story will be told by the accompanying photos taken by master photographer David Palermo.

•MJ

Each of the bedrooms (there’s plenty of room and space to create additional bedrooms) comes with its own bathroom and plenty of closet space

WHEN IT COMES TO MORTGAGE FINANCING NEW AMERICAN FUNDING HAS MORE TO OFFER • Conventional • FHA • VA • Jumbo Loans to $15 Million • First Time Homebuyer Programs BLAINE PARKER

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branch.newamericanfunding.com/Montecito | 1165 Coast Village Rd.Suite A, Montecito, CA 93018 *14 business day guarantee only applies to purchase transactions. This guarantee does not apply to Reverse Mortgages, FHA 203k, VA, Bond, MCC, loans that require prior approval from an investor, or brokered loans. The guarantee does not apply if events occur beyond the control of New American Funding, including but not limited to; appraised value, escrow or title delays, 2nd lien holder approval, short sale approval, or lender conditions that cannot be met by any party. The 14 day trigger begins when the borrower’s initial application package is complete and the borrower has authorized credit card payment for the appraisal. If New American Funding fails to perform otherwise, a credit of $250 will be applied toward closing costs. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License. NMLS ID #6606 All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice. © New American Funding. New American and New American Funding are registered trademarks of Broker Solutions, DBA New American Funding. All Rights Reserved. Corporate Office is located at 14511 Myford Road, Suite 100, Tustin CA 92780. Phone (800) 450-2010. 11/2016

14 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

SUMMER 2018

• REAL ESTATES •

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IF YOU’RE LOOKING FOR RESULTS...

Cristal has them!

Padaro Lane • Carpinteria

Toro Canyon Road • Carpinteria

Via Tranquila

High Road • Montecito

Picacho Lane • Montecito

Toro Canyon Roa

Monarch Lane • Montecito

Court Place • Montecito

Calle Montilla • SB Mesa

Whitney Avenue • Summerland

Roble Lane •

East Las Tunas Ro

Com m u ni t y B ase d,

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee acc

16 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

A SELECTION OF RECENTLY CLOSED TRANSACTIONS • Hope Ranch

East Valley Road • Montecito

East Valley Road • Montecito

Bolero Drive • Montecito

East Las Tunas Road • SB Riviera

Sycamore Canyon Road • Montecito

Torito Road • Santa Barbara

Arboleda Road • Santa Barbara

Chino Street • Santa Barbara

ad • Carpinteria

• SB Riviera

oad • SB Riviera

805 .8 8 6 .9 3 7 8

Gl o b a l l y Re co g n i z ed

Crist a l@ M ont e ci to-E state.com www. M ont e c i to-E state.com

curacy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. CalDRE 00968247

SUMMER 2018

• REAL ESTATES •

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SNAPSHOT (Continued from page 10)

bors buying the property adjacent to theirs. A house nearly destroyed in Montecito Oaks sold off-market for $1.1M, and earlier this month we saw the first marketed property with a home damaged by the mudslide: 202 Olive Mill Road was listed for $3,595,000. There is also a distressed 1.5-acre property on Rockbridge being listed by my office for $1.75M (not in the MLS), as well as a $1.2M Montecito Oaks property on Santa Clara Way listed by Sotheby’s.

I currently have two buyers who are looking for properties affected by the mudslides; both live out of town and

Montecito

intend to build in Montecito after our charred hillsides recover and the risk of a debris flow is greatly decreased.

It’s clear that in the six months following the disaster, we are seeing a lot of transition. Some property owners are staying and rebuilding, some are selling, and some are still weighing their options. Insurance is also an issue, with buyers having a harder time finding an affordable carrier. We are also hearing from homeowners who are being dropped by their insurance carrier; according to our in-house insurance broker, there are carriers who will insure here, but homeown-

ers can expect higher premiums and more stringent requirements.

My Predictions

As we head into fall, I predict that prices will continue to decline slightly as inventory continues to increase. My advice to buyers is to enjoy all that the market has to offer right now; it’s a great time to be buying, especially in Montecito, where there are multiple price reductions on a weekly basis.

I’m also encouraging my buyers to consider the ramifications of waiting until next year; we are expecting inter-

Market Comparison 2018 v 2017 Jan Feb Mar April May June July TOTAL

Transactions 2017 2018 13 9 15 10 16 13 17 6 25 17 21 17 16 18 44 32

% Change

Average 2017 2018 $3,344,462 $3,038,611 $2,700,533 $4,056,500 $3,135,875 $5,472,000 $3,021,912 $3,113,167 $3,484,200 $4,162,559 $3,599,690 $4,582,794 $3,556,156 $2,600,778 $3,060,290 $4,189,037

-31% -33% -19% -65% -32% -19% 13% -27%

% Change -9% 50% 74% 3% 19% 27% -27% 37%

est rates to rise as much as a full point by the end of 2019. This can increase a mortgage payment significantly, which may make home buying more challenging.

I expect to see a boost in pending sales come September, when people are back from summer vacation and they will take advantage of the increased inventory. My advice to sellers is, as always, to monitor the market carefully to help inform the list price of your home. There are still hundreds of house hunters looking to buy here, and if priced right, properties are selling fairly quickly.

•MJ

Median 2017 2018 $2,250,000 $3,000,000 $2,536,000 $2,357,500 $2,312,500 $3,400,000 $2,405,000 $1,725,000 $3,200,000 $2,700,000 $2,800,000 $2,850,000 $3,219,000 $2,655,000 $2,366,167 $2,919,167

% Change 33% -7% 47% -28% -16% 2% -18% 23%

Avg/Median Price 2018 v 2017 $6,000,000

$5,000,000

$4,000,000 Average 2017 Average 2018

$3,000,000

Median 2017 Median 2018

$2,000,000

$1,000,000

$0

Jan

Feb

Mar

April

May

June

July

Transaction Volume 2018 v 2017 45 40 35 30 25

Transactions 2017

20

Transactions 2018

15 10 5 0

Jan

Feb

Mar

April

18 MONTECITO JOURNAL

May

June

July

TOTAL

Santa Barbara • REAL ESTATES •

SUMMER 2018

434 NICHOLAS LANE Offered at $2,195,000

As you enter this extraordinary .84-acre property, find yourself surrounded by lush landscaping and the sweet scent of citrus. Expansive lawns and verdant gardens create the ultimate California backdrop while privately situated in Montecito’s coveted Cold Springs School District, ranked #1 Best Public Elementary School in SB County. 4BD/3BA + office.

Upstairs master offers the ultimate experience with walk-in closet and large bath with separate vanity.

Generous veranda draws you outside to experience the captivating ocean and island views.

OPEN SAT 2-4 335 SIERRA VISTA Offered at $2,395,000

Savor the 180° explosive, breathtaking and panoramic mountain views as you enter this artistically conceived modern craftsman. The sun-drenched gourmet kitchen with quartzite countertops and a large center island opens to a spacious dining area with a wet bar, wine fridge and built-in two drawer refrigerator. The great room features dramatic vaulted tongue and groove ceilings, a cut stone fireplace and walls of glass. 4BD/3BA multi-level residence is beautifully situated on .91 lushly landscaped acres. Montecito’s coveted Cold Springs School District.

OPEN SAT 1-3 Ann & Jim Scarborough 805.331.1115 | 805.331.1465 Team@TeamScarborough.com www.TeamScarborough.com DRE 01050902 / 01182792 ©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

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Whether it’s on the coast or in the valley, there’s a place for you here.

WE’LL HELP YOU FIND IT.

Exclusive affiliate of

V IL L AG E S IT E .CO M

All information provided is deemed reliable, but has not been verified and we do not guarantee it. We recommend that buyers make their own inquiries.

20 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

LOCALLY OWNED | GLOBALLY CONNECTED SANTA BARBARA | MONTECITO | SANTA YNEZ

2709 VISTA OCEANO LANE | A majestic estate of over 18 acres inspired by the Italian countryside, Tuscany Oaks Farm combines magnificent vision with seductive beauty in a setting with sublime coastal and mountain views.

4160 LA LADERA ROAD | Redefining Santa Barbara style, this newly-built, stellar 2.3 acre ocean-view estate takes queues from Moroccan extravagance+minimalist design. Lush gardens and hidden courtyards abound. This is sheer perfection!

1379 OAK CREEK CANYON ROAD | Rooted in nature and ancestral quality craftsmanship, this Marc Appleton designed Mediterranean estate offers sweeping ocean and mountain views in a private countryside setting.

1422 E VALLEY ROAD | Tucked away behind private gates and situated down a

$12,000,000 | Gregg Leach 805.565.8873

$4,995,000 | Patricia Griffin 805.565.4547

EXQUISITE FRENCH COUNTRY MANOR HOME | Never before on the market.

Built in 1996 by DD Ford. Montecito Union School attendance area. Set on over 1 acre, with mountain views. Formal living and dining rooms with vaulted, and pen beam ceilings.

129 W MOUNTAIN DRIVE | Nestled on its own 6+ acre site, this tranquil Mediterranean retreat offers so much for the discriminating buyer: ocean, harbor, Mountain Views from all major rooms. Formal dining and living rooms opening to sunbathed south facing terraces.

$26,500,000 | Emily Kellenberger 805.252.2773

$3,750,000 | Jeff Oien 805.895.2944

$16,495,000 | Riskin Partners 805.565.8600

long enchanting lane, this Montecito Estate near the Upper Village, exudes timeless elegance. This quintessential property is all about lifestyle.

$2,995,000 | Tim Walsh 805.259.8808

MORE ONLINE AT

VILLAGESITE.COM All information provided is deemed reliable, but has not been verified and we do not guarantee it. We recommend that buyers make their own inquiries.

/ 01815307 / 01447045 / 01954177 / 01951069, GREGG LEACH #01005773, PATRICIA GRIFFIN #00837659, JEFF OIEN #00852118, TIM WALSH #00914713

SUMMER 2018

• REAL ESTATES •

CalDREs:

EMILY KELLENBERGER #01397913, RISKIN PARTNERS #00805720

MONTECITO JOURNAL

21

Real Estate

by Mark Ashton Hunt

Mark and his wife, Sheela Hunt, are real estate agents. His family goes back nearly 100 years in the Santa Barbara area. Mark’s grandparents – Bill and Elsie Hunt – were Santa Barbara real estate brokers for 25 years.

Move-in Condition

W

hen one thinks of Montecito, images of the ocean, palm trees, Spanishstyle architecture, San Ysidro Ranch cottages, and more come to mind. It is one thing to be able to live here, in such a special, small yet internationally recognized community, but it is another thing altogether to have a career that allows access to many of the homes and estates in the area, over time, as happens during open houses and showings as a real estate agent.

Sometimes, on our broker and agent tours, the options for buyers that we see in a day are so vast, it even confuses us. For example, we’ll do a walk-through on a $10,500,000 mansion with every imaginable amenity and view, and then drive a block to the next and find a humble, smaller, starter home or fixer opportunity priced at $1,400,000.

Over time and as real estate prices go up over a period of years, and when the number of available homes for sale goes down (as things are now), fixers can become a good option for a buyer who wants to own a home on a certain street, or other factors, and has the vision to create what they want from what they see.

That said, in recent months we have seen more consistent sales of finished or basically move-in ready homes over those that could use or need real work done. It seems that larger estates, along with homes in the lower price ranges that have been “cleaned up” or fully remodeled, are getting most of the attention.

This is certainly true in the more-than-$3-million range the past six months, where most sales in that price range in Montecito were of homes in good and move-in condition. In August, we had four estates close escrow, from the mid$8-million to $16-million range, which is great news for our high-end market.

My following picks all offer indoor-outdoor living opportunities:

the lower village, and the beach, down a private lane on 1.1+ acres and features the 4,501-sq-ft architectural statement, offering 5 bedrooms, an office, 4 bathrooms, 3 fireplaces, a chef’s kitchen, spacious family room, a dining room opening to view terraces, balconies, hardwood floors, and updated systems. There are plans mentioned in the listing information to add a pool house and more.

Located within the Montecito Union School District, the property also includes specimen trees, sprawling lawns, flowering gardens, sandstone walls, and proximity to other estates and important properties including the one next door that is offered for sale at more than $11,000,000.

280 Middle Road: $5,900,000

608 Cowles Road: $3,595,000

This contemporary home was re-designed, expanded, and renovated. Set on 1+ acre in the foothills above, and within the Cold Spring School District, is the gated home that mixes Santa Barbara stone accents with smooth coat plaster finish and standing seam metal roof.

The open floor plan offers approximately 3,442 sq ft of living and entertaining spaces, including a formal dining room, office, great room, chef’s kitchen with Viking appliance suite, large island with farmhouse sink, a family room with fireplace, and bi-fold doors that span the north wall, enabling seamless indoor/ outdoor living.

There are 4 en suite bedrooms and 4.5 bathrooms. The living spaces are surrounded by secluded low maintenance grounds with multiple patios, fire pit, a small lawn, and pathway to the wine cabana with bar plus al fresco entertaining area and orchard.

1098 Golf Road: $5,495,000

This is a 1922 George Washington Smith Spanish Colonial Revival with mature landscaping, private drive, pool, and parking for guests. The home has been remodeled and is located within blocks of the Montecito Country Club,

22 MONTECITO JOURNAL

Clavelitos, meaning little carnations, is the name of this important estate property designed by – and used as the personal residence of – noted architect Lutah Maria Riggs. Recently updated and enhanced by the current owner, the home was featured as a cover property for Veranda magazine and features 3 bedrooms and 3 and one half bathrooms on more than a half-acre in the desirable and convenient Middle Road area of Montecito.

The home rests just a few blocks from the Montecito Country Club, Coast Village Road restaurants and shops, and Butterfly Beach. Built in 1926/27, the property includes a pool, lawn, and mature landscaping, with dramatic hedges and private sitting areas, all within the Montecito Union School District.

Additional features include 24-inch-thick walls, antique stone floors, four fireplaces, multiple courtyards, and a tile roof.

1908 Boundary Drive: $8,499,000

Birnam Wood is a security-gated golf course community in a prime area within Montecito. This home on Boundary was taken down to the studs and expanded in 2014. It is a 2-story, ocean-and-mountain view Wallace Neff estate.

A lofty 2-story living room, full of rich details and bathed in southern light, opens to a large entertaining terrace and looks out to the sea. The kitchen is awash in white marble and gray limestone and is anchored by a stainless-steel and polished-brass La Cornue range.

• REAL ESTATES •

SUMMER 2018

Stunning Montecito Contemporary

2775 Bella Vista Drive | New Price

A staircase along the north wall in the living room leads to the second level of the home, dedicated to the sprawling ocean-view master suite w/dual baths & closets.

Then, overlooking the pool is a large studio with half-bath and walk-in closet ideal for meetings, movies, projects, et cetera... This home is located within the Montecito Union School District.

Breathtaking views across ocean, islands, harbor, and city are just the beginning!

This quiet, five acre private paradise holds a commanding position above Montecito.

There is seven thousand square feet of air conditioned space with five bedrooms and five-and-a-half baths including a first floor master bedroom and two master baths. Outside amenities include an infinity pool, putting green, and tennis court.

Make plans to see this extraordinary residence today!

Offered at $7,000,000 ww www.montecitocontemporary.com

JO ANN MERMIS & WES ST. CLAIR

*** Please feel free to contact me regarding any real estate needs or to set up a showing with the listing agents of any properties featured here: Mark@Villagesite.com or call/ text (805) 698-2174. Please view my website, www.MontecitoBestBuys.com, from which this article is based.

•MJ

joann@mermis-stclair.com|wes@mermmis-stclair.com 805.895.5650 | 805.886.6741 www.mermis-stclair.com DRE: 01173714 & 00891742 Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc. Equal Housing Opportunity. SIR DRE: 899496

It all started in 1925, when two engineers, Peter Bang and Svend Olufsen, began a modest production of radios. From the outset B&O concentrated on quality materials, the application of new technology and a forward thinking aesthetic. B&O has a distinctive design appeal that Wired Magazine described as “quality media delivery via striking objects”. Blending a strong passion for design and inventive engineering B&O has amassed an almost cultlike following. Stop by for a demonstration that your eyes and ears will savor.

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Showroom Tuesday thru Saturday 10:00 to 6:00 / missionaudiovideo.com 1910 De La Vina at Pedregosa, Santa Barbara 805.682.7575

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

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24 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

Mortgage Market Update

by Adam Black Adam Black is the area manager and senior loan officer for New American Funding Montecito branch. He can be reached at 805-452-8393 or by email adamblackgroup@nafinc.com

~CONGRATULATIONS ~

LORI BOWLES & DANA ZERTUCHE

Nonconventional Loans on the Rise

B

eing a mortgage guy, I can’t help but formulate things into mathematical equations. When I was asked to provide an update on what the biggest trends are in the mortgage market, the answer to the question is easy: the big increase in nonconventional loans. However, the explanation is a bit more complex, so I came up with the following equation: Rising Interest Rates and Home Prices + Low Inventory and Affordability Index = Increase in Credit Availability What does this mean to the average person looking for a mortgage right now? It means there are far more ways to qualify people for loans (and bigger loans) today than at any point in the last 10 years. Even better, if you live in South Santa Barbara County where the median home price is sitting right around $1,200,000, that situation could determine whether you get to buy your house.

Now to explain the equation and what’s behind the increase in loans.

After the “Great Recession,” the Dodd-Frank Wall Street Reform and Consumer Protection Act set guidelines of what lenders needed to do to insure that borrowers could repay a loan. It also defined what characteristics a loan product could and could not include. In essence, they defined what a “conventional” mortgage is and how a borrower qualifies for one.

These new guidelines made it more difficult to qualify for a mortgage and eliminated loan characteristics deemed risky or onerous, such as interest-only loans and prepayment penalties. As a result, credit availability reached a low in 2008 and hasn’t seen much growth until a few years ago.

Fast-forward to today, and we have the proliferation of nonconventional mortgage products that are largely responsible for the doubling of the MCAI between 2008 and 2018 as noted above. The explanation behind why these products are being created can be understood by referencing my equation above.

Broken down, it looks like this:

• Rising Prices: home prices are up due to low inventory. Basic supply and demand.

• Low Inventory: below-average supply of houses on the market means fewer total units sold. Fewer home purchase loans for lenders.

• Affordability: is down due to the combination of higher interest rates and higher home prices, making it harder to qualify for a loan. Fewer purchase loans for lenders.

• Rising Interest Rates: interest rates are higher, so refinance loan volume is down. Fewer refinance loans for lenders.

How does all of the above add up to equal an increase in credit availability and nonconventional loans? Each factor contributes to the decrease in overall loan volume, and the only way for lenders to offset the loss is to expand credit with creative new loan products that open the door to new buyers.

for their exceptional Seller and Buyer representation of 525 Scenic Drive listed at $1,295,000 LORI CL ARIDGE BOWLES

805.452.3884 · lori @ loribowles.com CalRE#01961570

DANA ZERTUCHE

805.403.5520 · dana@danazertuche.com CalRE#01465425

www.MONTECITO.associates The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company.

C. Scott McCosker Offering Extraordinary Properties, In-depth Market Knowledge and Successful Negotiating Skills for Over 30 Years

New Loan Products

•B ank Statement Programs allow 6,12, or 24 months of bank deposits to be averaged for income. This has been advantageous for self-employed borrowers who write off expenses on their tax returns to minimize their tax liability but actually do quite well when averaging bank deposits.

•A sset Depletion Loans use a formula to convert assets to income to help borrowers who have significant savings but not much income or are retired.

•L ow Down Payment Loan allow as little as 5% down for a loan amount up to $1.5 million.

•A dverse Credit Loans may work for individuals who have less than perfect credit or have had a single credit event such as bankruptcy, short sale, or foreclosure.

•O ne Year Tax Return Programs for new business owners who would not traditionally qualify if required to follow the standard of averaging two years of returns.

While there are many challenges for homebuyers and lenders in today’s housing market, the emergence of nonconventional loan programs is a positive trend, one which most industry experts forecast to continue for the next several years.

•MJ SUMMER 2018

1589 Las Canoas Road – Open Sunday 2-5

ULTRA PRIVATE CONTEMPORARY NEOCLASSICAL TWO MASTER SUITES. WALLS OF GLASS & MULTIPLE GARDEN PATIOS.

Offered at $3,298,000 Thinking of Selling?

C. Scott McCosker 805.687.2436 | Scott@ScottMcCosker.com www.ScottMcCosker.com | CalRE#00494253 Coldwell Banker Residential Brokerage The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company. ©2018 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo service marks are registered or pending registrations owned by Coldwell Banker Real Estate LLC.

• REAL ESTATES •

MONTECITO JOURNAL

25

The Condo Life

by Michael Phillips

The Condominium Market

T

here is no doubt that condominium living is completely distinct from that of a single-family home experience. We all know condominium dwellers who fired their gardener and the guy who fixes the electric gate years ago and would not live any other way, and others who miss being able to paint their front door any color they’d like and prefer the enhanced privacy afforded most single-family home (SFH) ownership.

Just possibly, the sense of “lock and go” security condominiums enjoy might be an increasingly important issue, especially this year in our seemingly more vulnerable semi-rural enclave.

Visit a condominium open house and you will encounter investors in search of rental properties, entry

Michael is a realtor at Coldwell Banker, and is a former Montecito Planning Commissioner.

He can be reached at 969-4569 and info@ MichaelPhillipsRealEstate. com

is also valued at almost exactly half; $1,437,500 and $2,850,000, respectively.

And the year-over-year data for condominiums versus the SFH are surprising. While condominium sales are up 27%, SFHs are down 38%, and while condominium median sales price rose 10%, SFHs fell 10%. These differences promise to continue for the

near future; condominiums pending, or under contract, are up 45%; SFHs are down 39%. These will show as sales data within the next 30 days.

This year, condos sold at San Ysidro, Depot, Danielson, East Valley, Fairway, Montecito Shores, and Bonnymede at prices from $690,000 to an even $4 million for a 2-bedroom ocean view at Montecito Shores pictured here. •MJ

buyers hoping to have their children enjoy the benefits of our exceptional schools, and all kinds of folks wanting to downsize both property ownership obligations and space.

From 1978-2016, SFH’s increased in size every year. In 2016, this trend reversed. After realizing that we mostly live in the kitchen and family room, we seem to be thinking smaller.

Indeed, here in Montecito the typical condominium is at least half the size of the median-priced SFH and

Congratulations to Robert Kemp Berkshire Hathaway HomeServices California Properties is pleased to congratulate

Robert Kemp on the successful representation of the buyer at 770 Riven Rock, Sold off market for $9,550,000 Robert Kemp 805.259.6318 RKemp@bhhscal.com www.RobertKempRealEstate.com DRE 01246412

©2018 Berkshire Hathaway HomeServices California Properties is a member of the franchise system of BHH Affiliates LLC

26 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

1347

Santa

Teresita

Drive

-

Stunning

Panoramic

Views

• Panormic View With Stunning Sunsets

OPEN SAT & SUN 1-4 PM

• Single Level Living • All New State-Of-The-Art Chef’s Kitchen • High Ceilings • Very Private Acre • Quiet Neighborhood • Limitless Parking • 5 Bedrooms (Including 2 Masters) 4.5 Bathrooms • Few Minutes Drive To Gelson’s & Whole Foods • Great For Entertaining

Property Presented By:

Gay Milligin

805.689.8090 | gm4re@yahoo.com Cal DRE#00683306

W W W . G a y M i l l i g i n . c o m

RARE OPPORTUNITY TO OWN A PIECE OF MONTECITO HISTORY!

866 KNAPP DRIVE • $5,495,000 The Francis T. Underhill-designed Pool Pavilion—crown jewel of philanthropist George Owen Knapp’s famed Arcady Estate—can now be your secluded retreat on an ocean-view hilltop.

Framed by inspiring ocean & mountain views, this elegant Neoclassical 6,350 sq ft pavilion, built in 1918 of poured concrete is an amazing single level home with 14’ ceilings, 12 large glass skylights, magnificent custom hardwood floors, and walls of glass, on an enchanting, private, gated flat 1.45 acres (not in the evacuation zone). Premier Montecito location! Perfect for grand or intimate gatherings - indoors or outdoors!

PASCALE BASSAN 805.689.5528 PBassan@gmail.com www.PascaleBassan.com DRE 01095317

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

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SANTA BARBARA POLO & RACQUET SummerCLUB 16 Goal Series July 8 - September 2 Sundays at 3:00 PM

General Admission starts at $12 (online pricing)

ENGEL & VÖ LKERS STADIUM SANTA BARBARA POLO & RACQUET

Several seating options available online at: www.sbpolo.com /tickets For sponsorship information,

CLUB 3300 Via Real Carpinteria, CA 93013

Contact Charles Ward at (214) 995-5584 Santa Barbara Polo & Racquet Club

28 MONTECITO JOURNAL

@santabarbarapoloclub

• REAL ESTATES •

@sbprc

SUMMER 2018

f i n e p ro p e rt i e s r e p r e s e n t e d b y

D aniel e ncell

• #3 Berkshire Hathaway Agent in the Nation • Wall Street Journal “Top 100” Agents Nationwide (out of over 1.3 million) • Graduate of UCLA School of Law and former attorney (with training in Real Estate law, contracts, estate planning, and tax law) • Dedicated and highly trained full-time support staff • An expert in the luxury home market

remember, it Costs no more to Work With the best (but it Can Cost you plenty if you don’t) Visit: www.DanEncell.com for market information & to search the entire MLS

WATCH ME ON CHANNEL 4, MONDAYS AT 8:30PM!

Dan Encell “The Real Estate Guy” Call: (805) 565-4896 Email: danencell@aol.com DRE #00976141

Each YEar Dan SpEnDS OvEr $250,000 In MarkEtIng anD aDvErtISIng!

RIVIERA

gRAnd 1920’ s 5 bEd /4 bATh EsTATE Is locATEd on A pREsTIgIous sTREET on ThE R IVIERA And sITs on A bEAuTIfully lAndscApEd AcRE . A TRuE clAssIc !

T hIs

$3,495,000

MONTECITO - NEW PRICE C haRMINg 2 B Ed /2 B aTh hOME IN ThE hEaRT Of M ONTECITO . L IghT aNd aIRy , ThE INTERIOR sPaCEs INCLudE : C ENTRaL LIvINg ROOM WITh a COzy

BRICk fIREPLaCE aNd LaRgE WINdOWs ThaT aLLOW aN aBuNdaNCE Of NaTuRaL LIghT ; ThE kITChEN fEaTuREs a v IkINg RaNgE aNd OPENs TO ThE dININg ROOM ; ThE MasTER BEdROOM INCLudEs a PRIvaTE OffICE sPaCE , duaL CLOsETs , aNd LaRgE WINdOWs WITh vIEWs Of ThE sTuNNINg BaCkyaRd . g aTEd aNd fENCEd fOR PRIvaCy , ThE yaRd fEaTuREs : a sPORTs COuRT ; fRuIT TREEs ; MaTuRE hEdgEs ; LaWN aNd a BRICk PaTIO , PERfECT fOR ENjOyINg a suMMER afTERNOON .

C ONvENIENT TO BOTh u PPER aNd L OWER v ILLagEs ! I N Mus.

$1,895,000

MONTECITO - NEW PRICE T hIs sPECTaCulaR sINglE - sTORy 4 bEd /2.5 baTh M ONTECITO hOME Is lOCaTEd dOWN a quIET , RuRal sTREET

aNd sITs ON jusT uNdER aN aCRE Of bEauTIfully laNdsCaPEd gROuNds .

E xTENsIvEly REMOdElEd , aNd lOCaTEd IN Mus .

$2,995,000

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS.CalDRE#: 00976141

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

29

New Listing!

1308 Plaza de Sonadores, offered at $1,349,000 Elegant 1BD/1BA pied-à-terre in Bonnymede, a pristine gated community that offers luxurious beachside living.

Calcagno & Hamilton

(805) 565-4000 Info@HomesInSantaBarbara.com www.HomesInSantaBarbara.com

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

DRE 01499736/01129919

30 MONTECITO JOURNAL

• REAL ESTATES •

SUMMER 2018

$6,566,000 | Riviera, Foothills | 5BD/4½BA McGowan Partners | 805.563.4000 | Lic # 00893030 / 02041055

$2,450,000 | 168 Canon View Rd, Montecito Upper | 5BD/5BA Jason Streatfeild | 805.280.9797 | Lic # 01834496

$19,500,000 | 568 Toro Canyon Park Rd, Carpinteria | 4BD/6BA Cristal Clarke | 805.886.9378 Lic # 00968247

$7,850,000 | 4188 Foothill Rd, Carpinteria | 5BD/7BA; 12± Acres Nancy Kogevinas | 805.450.6233 Lic # 01209514

$6,995,000 | 4632 Via Roblada, Santa Barbara | 4BD/5½BA Daniel Encell | 805.565.4896 Lic # 00976141

$5,795,000 | PadaroCottage.com, Carpinteria | 2BD/3BA Kathleen Winter | 805.451.4663 Lic # 01022891

$5,550,000 | 1567 E Valley Rd, Santa Barbara | 6BD/7BA Lisa Scibird | 805.570.9177 Lic # 02027505

$5,495,000 | 866 Knapp Dr, Montecito Upper | 4BD/6BA Pascale Bassan | 805.689.5528 Lic # 01095317

$5,450,000 | 2085 Birnam Wood Dr, Montecito | 3BD/3½BA Cristal Clarke | 805.886.9378 Lic # 00968247

$4,900,000 | 380 Woodley Rd, Montecito Lower | 7BD/7BA Calcagno & Hamilton | 805.565.4000 Lic # 01499736 / 01129919

$4,500,000 | 2900 Sycamore Canyon Rd, Montecito | 3B/5BA Mary Whitney | 805.689.0915 Lic # 01144746

$4,250,000 | 5372 Rincon Beach Park Dr, Ventura | 4BD/4BA MK Properties | 805.565.4014 Lic # 01426886 / 01930309

$2,999,000 | 125 Via Alicia, Santa Barbara | 3BD/4BA Michelle Cook | 805.570.3183 Lic # 01451543

$2,795,000 | 330 E Mountain Dr, Montecito Upper | 3BD/5BA Nancy Kogevinas | 805.450.6233 Lic # 01209514

Do you know your home’s value? visit bhhscalifornia.com

MONTECITO | SANTA BARBARA | LOS OLIVOS

©2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Info. is obtained from various sources and will not be verified by broker or MLS. Sellers will entertain and respond to all offers within this range. Buyer is advised to independently verify the accuracy of that information. Lic# 01317331

SUMMER 2018

• REAL ESTATES •

MONTECITO JOURNAL

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Our community is beautiful and worth protecting. We’ve experienced serious drought and wildfires, so now is the time for Montecito to be resilient and achieve water security for the 21st century. The Water Security team will: Conclude the desalination agreement with the city of Santa Barbara to bolster our water supply.

Establish strong partnerships. Get our Montecito water agencies talking to each other and partner with our neighboring community water agencies to achieve a sustainable water supply for our region.

Stop dumping partially treated wastewater into our beautiful ocean.

Make use of recycled wastewater a priority to reflect our community’s commitment to sustainability. It could provide much needed irrigation water for our landscaping needs, preserving our lush beauty.

SANITARY DISTRICT

WATER DISTRICT

www.montecitowatersecurity.com

WOODY BARRETT DANA NEWQUIST

BRIAN GOEBEL CORI HAYMAN KEN COATES

www.MontecitoWaterSecurity.com Paid for by the Committee for Montecito Water Security, Supporting Coates, Goebel & Hayman for Montecito Water District and Barrett & Newquist for Montecito Sanitary District 2018 #1406974