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Montecito Real Estate

By Harry Kolb

September 2018

An Unbalanced Year to Date To quote the Queen, it’s truly been an Annus Horribilis. With the frightening Thomas Fire in December followed by the devasta ng and deadly debris flow in January, from a real estate standpoint, the first three months of our year really didn’t exist. Montecito experienced a trauma c event that has caused unprecedented damage and permanent altera on to our physical landscape and residen al community. But it also caused something that hopefully will be as las ng: a community fellowship and bond that I think would be hard to replicate in many other communi es. The degree to which volunteers of every descrip on have stepped up to lend a hand has been drama c and inspiring. Much progress has been made in just the last eight months to heal many of the physical scars we’ve suffered. With the County Board of Supervisors enac ng the “Like-forLike Rebuild Ordinance Amendment” in May, many of our homeowners who suffered damage to their homes should now be in a much be er posi on to repair and rebuild. Within a few weeks most of our community’s traffic bridges are scheduled to be up and working and soon addi onal hotel facilies will be available to welcome addi onal visitors to the area. All the repairs and altera ons are certainly moving our village in the

Montecito/Santa Barbara Estate Sales First 9-Months 2018

$4-$8 Million Dollar Sales Number of Homes Sold First 9-Months Each Year -52%

$8-$15 Million Dollar Sales Number of Homes Sold First 9-Months Each Year +86

right direc on. As you would expect, the first nine months of real estate sales in our market illustrates the significant discord our community experienced. As is o en the case, the sales results vary depending on price range.

For Montecito homes priced below $4 million, sales were off 39% from the same period last year. This year we sold 100 homes priced below $4 million during the first nine months compared to


The LiƩle Woods

166 sold last year. A por on of this reduc on may be due to some of the homes coming off the market and being converted to rental proper es to accommodate many of our displaced residents. In the estate market including Carpinteria, Montecito, Santa Barbara and Goleta, the sales results also differ based on price range. Family homes that sold between $4 million and $8 million were off 52% from a record high of 61 sold last year to only 29 sold so far this year. In addi on to the reac on to the significant natural disaster that affected Montecito, it’s difficult to an cipate how much of this reduc on may have been a reacon to California wildfires in general, new income tax considera ons regarding state tax deduc ons or real estate interest rate increases. A significant reduc on in sales in spite of strong consumer confidence.

By Harry Kolb

September 2018

$15+ Million Dollar Sales Number of Homes Sold First 9-Months Each Year Number of Homes Sold First 9-Months Each Year

Montecito/Santa Barbara Estate Sales Compared to Consumer Confidence Index Homes Sold Over $4 Million CCI Value: 1985 = 100

In the upper price ranges, we had significant increases in sales. In the $8 million to $15 million price range, sales increased from 7 last year to 13 this year or 86%. And in the highest price range of over $15 million, sales increased from only one sale last year to five this year. The sales in these two highest categories were due almost universally to price adjustments that made for significant values compared to original asking prices that were established years ago. The 13 homes sold between $8 million and $15 million sold at an average of only 73% of their original asking price and 89% of their last asking price. The five homes that sold for over $15 million sold for an average of 80% of their original asking price and 86% of their last asking price. Out of town buyers finally saw value in our larger estate market. And as significant as these sales results may appear, it should be noted that there are s ll a total of approximately 115 homes in our area available and priced above the $8

million mark. Two general condi ons that are affec ng homes sales in all price ranges are that homes in excellent condi on and wellpriced are selling fastest and homes requiring any work or slightly overpriced are not selling.

This is your quarterly report on the sale of estate properties in Montecito. These updates are sent as a courtesy to clients and friends by Harry Kolb. Harry may be reached at (805) 452-2500 or harry@harrykolb.com


The LiƩle Woods

By Harry Kolb

September 2018

Direct Exposure Sells Homes A few years ago clients called their agent and asked what homes they should tour during their home search. In this internet era, clients now tell their agent which homes they want to see based on the homes they’ve already selected on the Internet. Independent website analy cs provided by SimilarWeb.com.

Sothebysrealty.com received over 27 million visits last year—almost 3 mes as many visits as the closest Santa Barbara area compe tor.


The LiƩle Woods

By Harry Kolb

September 2018

Harry Kolb Senior Estate Agent Sotheby’s Interna onal Realty 1106 Coast Village Road Montecito, CA 93108 Cell: (805) 452-2500 Office: (805) 969-0248 www.SBEstateHomes.com CalBRE#: 00714226

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