America's Most Overpriced Cities 2014

Forbes' Erin Carlyle recently chronicled the countries most expensive cities and many  California cities found themselves labeled "overpriced." In fact, California cities showed up most often on the list taking a whopping 9 spots. Covering the entire state, San Francisco, Fresno, L.A., Riverside and San Deigo all made the list, with L.A. snatching up the #20 position. Of relatively little surprise, Honolulu, Hawaii and New York City tied for first followed by South Connecticut and Boston. Philidelphia, Miami, Portland, North New Jersey and Long Island, N.Y. all made the list as well.

Aloha - Honolulu made a great case for being the most overpriced city with a median housing price of $430,000 and an exorbitantly high cost of living. While the median home price does not reflect the highest in the counrty for a Metropolian area, it is financially out of reach for most of the city's resident families earning the median income of $86,300 per year. Cost of living plays a major role as well, with groceries costing an astounding 55% more than in the rest of the country and utilities costing - wait for it - 67% more.

Forbes compiled this data by looking at Metropolian Statistical Areas (areas with populations of 600k or more), and housing affordability and cost of living index in these areas.

Santa Barbara's humble approx. 89,000 population disqualified the city as a Metropolitan Statistical Area. With is no shortage of adventure, culture and cuisine in the area, and a airport an airport for quick jaunts to L.A., the Bay Area and beyond, Santa Barbara is an ideal town.

"My Home Is My Castle" Understanding American Real Estate Needs

Unique in many ways, American's have a variety of characteristics which set their lifestyle apart from the rest of the world. One of Americans' most distinctive lifestyle choices is their home - no surprise - as Americans covet their personal time and space. Inman News contributor Bernice Ross recently delved into the unique real estate needs of Americans. During her account of the four basic needs of American real estate, Riskin Associates noticed a trend, Montecito real estate easily covers all the bases: safety, privacy, size and retreat. 1. Safety. Americans consider safety one of their top concerns. Safe neighborhoods for children and home security systems are important amenities American's rarely compromise on. Particularly in the luxury real estate market, increased safety precautions and a high-end security system is often the standard and expected among wealthy home buyers.

Protective gates provide privacy to this Montecito estate.

 This magnificent French Chateau is set behind it's own private entry gates. Before arriving at the gates of the Chateau, visitors to lavish the entertainer's estate must identify themselves at the Birnam Wood Country Club's manned community gates.

Offered at $13,900,000.

State-of-the-art home secuirty systems protect this fabulous Italian Villa in Montecito.

Surrounded by protective gates, this newer Italian villa boasts a state-of-the-art home security system. For security reasons (natch), we can't disclose the brand or extensive features of the system. Offered at $17,750,000.

2. "Top of the Heap." Hilltop properties are often valued higher than low-lying properties becaues being higher up exudes a "powerful" facade. Also, having extended visibility (apart from providing a stunning view) often allows people to feel increased safety. These two Montecito properties provide that extended hilltop advantage (and that million-dollar view).

A hill top view provides this Montecito estate a stunning ocean view.

The incredible ocean-view may be the most obvious advantage of this hill top estate, but the safety and privacy advantages are also (almost) priceless. Offered at $9,875,000

A rustic hill-top retreat

Surrounded by 5+ private, hill-top acres, this luxurious rustic retreat's location affords a view as far as the eye can see.

Offered at $6,495,000.

Supersize. Another point of rare surprise: Americans' belief in "bigger is better" translates to their property as well. Whenever possible, Americans prefer bigger homes, bigger cars and bigger televisions. You name it, Americans would supersize it. The following properties are just plain big.

An expansive French Provincial estate in Montecito with ocean and mountain views.

On over nine lush and private acres, there is nothing miniscule about this coveted Montecito estate. An approximately 12,000sf main residence overlooks expansive lawns, gardens and a private lake. Offered at $27,000,000.

AN expansive equestrian property in Santa Barbara

This approx. 13 acre equestrian property features multiple guest structures, horse facilities, tennis court and two pools.

Offered at $18,200,000.

4. "My home is my castle." Americans covet their personal time and their privacy and view their home as their retreat from the stresses of daily life. A home in a quiet, tranquil setting is often a major priority for Americans. These two properties embody the stress-free living Americans strive toward.

Enchanting gardens and a tranquil location in Montectio.

This magical English Manor's private location is renowned in Montecito to be tranquil and quiet. Serene ocean views and enchanting gardens define the estate's placid aura. Offered at $7,995,000.

A tranquil zen garden surrounds this Montecito home.

Zen gardens and trickling fountains surround this chic contemporary home near Montecito's Lower Village. While the location is desireably close to luxurious shops, restaurants, hotels and beaches, the floor plan allows for California-style indoor/outdoor entertaining and living. Ocean vistas and tranquil grounds create the ideal retreat from hectic daily life. Offered at $5,495,000.

How to Do Well In a Drought

California is dry, and thirsty. Perhaps the driest and most thirsty the state has been in a century. With the state recently declaring the situation a "drought emergency," we wanted to educate our readers on the benefits of owning a home with a private well.

A luxurious Montecito estate

Firstly, and most appropriately, private wells are often excluded from municipal water bans. During times of drought or water conservation, a private well would allow homeowners to continue with their normal water usage and lifestyle, experiencing limited interruptions.

Secondly, and possibly more importantly, is the absence of a water bill. Drawing the water directly from the ground, rather than being tracked by a meter, allows homeowners to rid themselves of water bills every month or, if well water is used only for landscape or agriculture, would significantly reduce the amount paid each month for municipal water.

Below indulge in some real estate eye candy. These luxury properties all include private wells.

An expansive French Provincial estate in Montecito with ocean and mountain views.

690 Picacho Lane, Montecito, Ca

Offered at $27,000,000

9 acres with orchards, vegetable gardens and lake

Private well

Riskin Associates, 805.565.8600 or associates@riskinproperties.com

Ocean view Mediterranean estate in montecito, ca

588 Freehaven Drive, Montecito, Ca

Offered at $14,900,000

Approx. 20 ocean and mountain-view acres

Private well

Riskin Associates, 805.565.8600 or associates@riskinproperties.com

1140 East Mountain Drive, Montecito, Ca

Offered at 9,875,000

6 acres with manicured rose gardens, lush lawns and oak trees

Shared private irrigation well

Riskin Associates, 805.565.8600 or associates@riskinproperties.com

What's Happening in Santa Barbara?

It's nearly impossible to decide on the best aspect of living in the Santa Barbara area. Ideal weather with year round sun and temperate temperatures, a culinary wonderland of fresh, inventive flavors paired with the region's award winning wines, vast sandy beaches nestled against the Santa Ynez Mountain's hiking trails or the numerous cultural community events which throughout the year bring visitors and locals alike into the streets to celebrate Santa Barbara's rich history and modern lifestyle. Fortunately, being a resident of this fantastic locale allows for the enjoyment of each of these pleasures and the countless others waiting to be discovered.

This month, our town is bustling with excitement as the Santa Barbara International Film Festival approaches! The world renowned festival brings hollywood heavyweights up from LA to a warm welcome of Santa Barbara-style events. Take a look at a sampling of this month's events and get in on the action. (Note: when planning your attendances, please note that the average temperature in Santa Barbara during the month of January is 64 degrees and this week's forecast puts our temperatures in the high 70's all week. Just saying.)

January 16th: Meet the Masters, Miro Restaurant - Bacara Resort. Enjoy an intimate dining experience that offers culinary enthusiasts the rare opportunity to dine with Master Sommeliers from across the globe who share a proven mastery in the art and science of wine and spirit pairing.

January 19th-26th: Santa Ynez Valley Restaurant Week. Restaurants throughout the Santa Ynez Valley are offering special 3-course tasting menus for the price of $20.14

January 21st: New Year Modern with the Santa Barbara Chamber Orchestra. Celebrate the beginning of 2014 with SBCO at New Year Modern and dive into the world of modern music! This concert features contemporary works of the 20th century and Appalachian Spring performed as a ballet.

January 30th-February 9th: Santa Barbara International Film Festival. The Santa Barbara International Film Festival (SBIFF), announces its highly-anticipated line-up for 2014. The 29th edition offers a vast array of films representing 60 countries and a rich selection of films sure to delight audiences from all reaches of the globe. SBIFF is proud to welcome many promising and established filmmakers, as well as honorees to join in its grand tradition of celebrating independent film.

January 30th-February 9th: Film Feast. Libations, cuisine, APPETITE! The original lights of Hollywood are shining brighter than ever, as Santa Barbara goes to the movies for a performance your taste buds will never forget. For eleven straight days, Film Feast 2014 is your invitation to explore the best plates and pours throughout Santa Barbara's many theatre districts during the Santa Barbara International Film Festival. If something is made here, it's just a little more special, more flavorful, more memorable. This is where the greatest things come together. Ocean meets mountains. Sunny meets year-round. The good life meets the great life. This isn’t the end but actually just the beginning. Take a walk down the red carpet to savor the flavors made in Santa Barbara during Film Feast 2014.

For further information on Santa Barbara's seemingly endless entertainment offerings, visit SantaBarbaraCa.com. Additionally, we invite you back each month the find out what's going on around town.

Five Forces Behind the Luxury Real Estate Boom

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As 2013 comes to a close, The Financial Times reflects on five reasons the luxury real estate market has seen a promising upswing over the last 12 months. Compared to the U.S. as a whole, the luxury market has experienced a superior recovery from the housing market bust with home prices in the top 5% increasing by as much as 10% since September of 2012 while the other 95% increased 6% over the same time frame. Read on to find out what has fueled this healthy boost in the luxury market.

• The increase in wealth. While everyone the world over is rejoicing in the recovering U.S. economic conditions, high-net-worth individuals are doing a decidedly more vigorous celebration dance. Recent data has revealed that the top 1% of households by income has captured 95% of the income gains between 2009-2012. Larger stock portfolios held by these high income individuals have benefitted from a booming stock market. The wealthy are searching for homes to fit their lavish lifestyle and are less likely to let interest rate increases dissuade their buying choices. In addition to these staggering numbers, the remaining 90% of the country has experienced fallen incomes by 16%.
• Affordable (Oversized) mortgages.   It's no secret that cash is king in the luxury real estate market, but when a mortgage is needed, they are accessible at historically low rates. Larger loans (usually $625,000 in high-cost areas) were generally more expensive and had stricter requirements than conforming loans, but recently have become more in line with conforming loans in terms of affordability and screening requirements. Another factor is the tax break, interest on loans can be written off up to $1M.
• Foreign buyers. The media has been reporting a sharp increase in purchases by foreign buyers. From Europeans to Asians, buyers are coming in from outside the U.S. with a sense of urgency to buy. Metropolitan cities like Miami, L.A. and Honolulu have seen the largest upswing in purchases by foreign buyers.
• New construction is back. For several years after the market downturn, new construction of luxury properties was virtually nonexistent. But contractors are getting back in the game as inventory continues to stay low despite an ever increasing demand. The country's largest builder of luxury homes, Toll Brothers, have increased signed contracts by 23% in dollars and 6% in units in the fiscal fourth quarter. Co-founder of Toll Brothers Robert I. Tolls discusses the current state of the luxury home building market and it's relationship to the overall luxury real estate market, "The supply of luxury homes is still not meeting current demand, let alone the pent-up demand of the last seven years. This supply constraint could lead to a further escalation in luxury home prices above and beyond normal trends until industry production returns to historic equilibrium.”
• Existing homeowners are trading up. First-time homebuyers are not the sector fueling the increase in luxury home market increase - existing homeowners are coming up from beneath the water, now having the ability to sell their homes and move to larger, more expensive residences. According to The Financial Times article, more than 85% of homeowners with a mortgage in the second quarter have some equity in their homes, this number up from 75% in 2011. Low inventory is allowing trade-up buyers an easier time selling their current home.

Chestnuts Roasting on an Open Fire!

Fireplaces and impeccable spaces in these Montecito Estates.

Montecito and Santa Barbara are renowned  for year-round sunshine and temperate temperatures. The enviable climate allows for surfing, golf rounds, hikes, wine tasting and just about any other outdoor activity you enjoy, 12 months a year. Even the "cold front" which has moved into our lovely coastal town, bringing daytime highs down to the 50's and evenings to almost freezing temperatures, hasn't kept residents and visitors indoors, with many continuing with morning beach walks and strolls along Coast Village Road. Embracing our abnormally cool weather, Riskin Associates invites you to enjoy three cozy spaces where fireplaces are warm and inviting centerpieces. To enjoy more of these distinctive estates, click the links below.

From the top: Shadows of Provence, Stunning Ocean View Estate, Rustic Beauty

Attention Sellers!

As Riskin Associates, ocean-view estate in Montecito

The world of residential real estate, especially at the luxury level, can often be a myriad of complex processes which can be difficult to navigate. Additionally, even the smallest of hiccups can cause a deal to fall through. For this reason, it is important to work with an experienced agent or team who has the knowledge to weather any procedural storm. Educating both buyers and sellers on each step of the escrow process - and what's involved - is key to a smooth transaction.

Today, Forbes brings to the table three issues which are regular culprits of a crumbled deal. Understanding why they cause problems and how to avoid them can make or break a seller's deal.

• Financing. "Back in the day" almost anyone could obtain a loan, however much of that ideology has changed and it is more important than ever for seller's to require a letter of pre-approval from the buyer. But keep in mind, this letter doesn't guarantee that a buyer will get the loan to buy your house. So, as usual, cash is king!
• Appraisals. Thanks to foreclosures and short sales skewing comps, home appraisals are coming in at significantly lower figures than in the past. How is this a threat to your deal you ask? The answer circles back to our friends the financiers. Lenders will not loan more than a house has been appraised for, meaning that if your house is appraised for lower than the asking or accepted offer price, a buyer requiring financing will not be able to obtain a loan for the required amount - thus taking their offer off the table or requiring the seller to accept a lower offer.
• Timing. Delaying buyers access to their new home is an overwhelming cause for deal abandonment. Banking, repairs, or lengthy close of escrow can all deter a buyer from moving forward with a deal. It is important to foresee any possible delays before entering escrow to ensure the best probability of closing the deal.

Whether you are a first time seller, or experienced in the process, understand that each deal is unique and presents its own set of potential issues. Taking great care in financial, home and personal preparations, as well as working with an experienced agent, will ensure that the sale of your home is as headache-free as it can possibly be.

Property of the Week: Legendary Ocean-View Estate in Hope Ranch

Rarely does a property of such prestigious architectural caliber combined with a location offering truly impressive acreage come onto the market. Unlike any other, this unique Hope Ranch estate offers a lifestyle few can attain. Breathtaking ocean views are the backdrop to approximately nine park-like acres, so whimsical and enchanting they could have been painted upon canvas and displayed on gallery walls. A scene realized in 1929, by the great Reginald Davis Johnson, award-wining architect to Santa Barbara's Biltmore hotel, retains its character, mystery and allure today.

An ocean-view estate in Santa Barbara, California offered by Riskin Associates

Impressive entry gates open to reveal a meandering oak lined drive spilling with shrubs, flowers and trees, leading to a welcoming motor courtyard. Across an expansive, rolling lawn, the Pacific Ocean glistens, while the fragrant aroma of blossoming rosebuds lingers in the air.

A deluxe Santa Barbara estate offered by Riskin Associates

Introducing the home’s exquisite character, hand-painted details, original terra cotta floors, and a beamed ceiling adorn the foyer. An impressive galleria connects private and public spaces with elegance and grandeur, graced with a hand-painted barrel ceiling, ornate crown molding and French doors opening to the ocean-view terrace.

Original details adorn each room of this Hope Ranch estate offered by Riskin Associates.

The generous formal living room is a powerful space, with a soaring pitched beamed ceiling, hand-painted details, an elegant fireplace, a large picture window framing garden views, and French doors revealing the ocean view. A handsome copper bar with a beverage refrigerator and temperature-controlled wine refrigerator complements the space, while French doors providing direct access to the pool courtyard are ideal for entertaining in this magnificent formal living room.

grand formal living room in this Hope Ranch estate.

The formal dining room encourages the utmost in sophisticated entertaining with a warming fireplace, gallery walls and custom Wendel lighting, ideal for showcasing art. Doors provide privacy for gatherings, separating the space from the extensive and well-appointed butler’s pantry.

Formal dining room in Santa Barbara california

French doors open the formal dining room to a terrace and the pool. A second set of French doors open to the home’s centerpiece, a delightful and sun-filled courtyard, where a hand painted tile fountain and climbing foliage create the most relaxing and enjoyable atmosphere.

A sunfilled courtyard is the centerpiece to the Santa Barbara estate

Outside, the swimmer’s pool is surrounded by vine-covered pergolas, a hedge-lined patio and ample terrace spaces while an ornate tile mural draws the eye towards the spa. Exploring the property’s stone pathways, citrus and avocado trees and rose-covered trellises lead to a mature, aromatic rose garden where the only disruption is a soft, sweet breeze and the charming chirp of native birds.

Pool pavillion in Reginald Johnson Santa Barbara estate.

Fragrant gardens surround the Santa Barbara estate.

Privately set away from the main hacienda, a lavish two-bedroom guest house enjoys views of the Pacific Ocean and the property’s immaculate grounds. Beautifully renovated throughout, the guest house features a gourmet kitchen with breakfast bar and top-of-the-line appliances, French doors opening to ocean vistas, a charming fireplace, two luxurious bedroom suites, a patio and ocean view terrace.

The guest house provides additional quarters while entertaining in this Santa Barbara estate.

Above a detached three-car garage, a lovely apartment with ocean views is outfitted as a gym with a private massage room. With an eat-in kitchen, featuring a pitched beamed ceiling and Electrolux appliances, and a full bath, the space perfectly doubles as additional guest quarters.

A guest apartment features a gym, full kitchen and bedroom with full bath.

One of Hope Ranch’s original homes, this expansive ocean-view estate is truly unique in both amenities and character.

An ocean view welcomes you to the comfortable terrace.

These impressive features are just the beginning of this incredible Hope Ranch estate. To discover the other secrets Reginald Johnson hid throughout the estate, click here. Or contact Riskin Associates at 805.565.8600 or associates@riskinproperties.com

Architect Spotlight: George Washington Smith

Arguably Montecito and Santa Barbara’s most celebrated architect, George Washington Smith’s unique take on Spanish Revival design has made Santa Barbara’s architecture world-famous.

George Washington Smith designed this impeccable Montecito estate in 1923

Born in East Liberty Pennsylvania in February of 1876, Smith inherited his eye for design from his father, a civil engineer who designed bridges for local railroads. After attending several prestigious primary schools, Smith enrolled at the Harvard School of Architecture in 1894. However, due to financial hardships Smith withdrew his enrollment from Harvard and took a position as outside construction supervisor for the architectural firm of Newman, Woodman and Harris. A few years later, further financial difficulties forced him to leave the firm and begin selling stocks and bonds in Pennsylvania.

After marrying in 1912, Smith and his wife Mary Cathrine Greenough spent three years traveling Europe. During their tour, Smith devoted himself to studying at the Julian Academy of L’Ecole des Beaux Arts in Paris and painting the architecture and landscape of the country, taking particular interest in Spain’s rural farmhouses. Upon returning to the U.S., George and Mary settled in New York before moving to Santa Barbara in 1916.

After designing and building his first home, known as the Smith-Hebertson House on Montecito’s Middle Road, Smith found that many of his neighbors wanted to live in a house like it, and thus began his career as a full-time architect. Viewing himself as a gentleman architect, Smith enjoyed a heavy involvement in the design process by those who commissioned him to create their residences. Together with his clients, Smith traveled across the globe to gather accouterments unique to each individual project. By the mid-1920’s, the commissioning of a house in Santa Barbara or Montecito by Smith was considered the hallmark of success.

Credited as the “father of Spanish Colonial Revival” in the U.S., Smith gathered much of his inspiration from Spain’s rural Andalusia region, featuring subtle and romantic design. Whitewashed exteriors, spiraling staircases, archways, balconies and intricate iron and tile work are familiar motifs of the Spanish Colonial Revival period.

The landscape surrounding the site of a future home was taken into expert consideration prior to design and construction. Working with notable landscape architects including Lockwood de Forest, A.E. Hanson and Ralph T. Stevens, Smith not only created residences, but entire estates with the vision of a full life lived by those who would live there, experiencing the beauty of both the interior and exterior environments.

Today, there are over 80 George Washington Smith works in Santa Barbara, and many more across the country.  Smith’s 21st Montecito house known as Casa del Herrero, built in 1922, is now a museum listed on the National Register of Historical Places, and many of his designs, sketches and correspondence can be found in the University of Santa Barbara’s Art Museum. His works are featured in many prestigious architectural publications including The Architect, Architectural Forum, Achitectural Digest and House Beautiful.

Riskin Associates recently sold this romantic George Washington Smith estate in Montecito.

Government Shutdown Update: What the NAR Told the Senate Committee Today

Since the Government Shutdown ten days ago, the world has been closely listening to the bickering between officials and watching for the effects on nearly every major industry in the nation. With all the back and forth and conflicting reports, it's difficult to decipher what is fact and what is speculation. Riskin Associates has been following the major developments, and today the headlines hit particularly close to home. Today, NAR president Gary Thomas went before the Senate Committee on Banking, Housing and Urban Affairs to discuss the foreseeable negative effects a debt default would have on the housing recovery. Thomas calls on Congress to raise the debt limit to avoid the consequences of a severe and drawn-out recession.

To quote Mr. Thomas, a default would be "devastating to homeowners whose largest asset would lose value and equity." In regards to home buyers, Thomas says "Home buyers would see a dramatic increase in interest rates and tighter credit standards." According to Thomas, a 1% increase in mortgage rates could cut home sales by nearly half a million and push many middle-class Americans out of the housing market. In his speech, Thomas urged Congress to raise the debt limit to help sustain the housing market rebound, which will allow to economy to maintain it's steady path to recovery.

The Housing Market Recovery: Just the Facts

This historic Montecito manor is priced to sell!

It's no secret, the housing market is in full recovery mode and home owners, economists and realtors are (cautiously) jumping for joy! With many news outlets reporting figures on the various aspects of the recovery, we thought it may be helpful to put the relevant information in one place. Fortunately, PropertyWire.com released an article which paints a helpful picture of the current state of the US housing market. Click the link to read the full article, or get the condensed version here:

• August marked the 17th consecutive month of housing price increases.
• August 2013 median sale prices up 6% from August 2012
• Home prices are up 23% from the bottom of the market in March 2013
• Foreclosures are down 3% from a year ago.
• Recovery seems to be driven by all-cash buyers and institutional investors based on the increasing share of sales by those two groups.
• California has seen the largest annual median price increase at 32%
• The CA metro areas with a population of 1M or more with the biggest annual median price increase:

1. San Francisco and Sacramento with 35% increase, with a healthy Northern California economy fueling price increases
2. Riverside/San Bernardino with 28% increase
3. Los Angeles with 26% increase

With an active market and a turbulent government, Riskin Associates will continue to report on the state and changes of the real estate market.

Indian Government Bans Purchase of Foreign Property

The business of buying and selling residential real estate is becoming an increasingly global industry. Many buyers of residential properties are using foreign money to purchase property both in the U.S. and around the world. However, the recent surge in property purchases by international buyers may lead to some unforeseen repercussions.  For example, the Indian government has taken an a series of interesting actions which could affect the global housing market. In recent years, Indian residents have invested heavily in foreign real estate, purchasing rental properties to secure income for their families and relatives or for their own use while visiting the country. Indians have had a such a heavy influence, that in recent years they were among the top five buyers by country of origin in the U.S. Purchasing U.S. homes of an average price of $300,000, with 21% of these purchases made in all cash.  Additionally, Indians were the number one purchasers of property in Dubai. What prompted such a dramatic decision by the Indian government? The answer is quite simple, keep the money in the country. In an effort to balance the strength of the Indian rupee against foreign currencies, the Indian government aims to increase the local exchange of currency, rather than seeing funds generated in India spent outside of the country. With such a large percentage of foreign buyers eliminated by the new law, housing markets around the world may feel the effects, in the form of decreased home sales.

This new global development could quite possibly have major repercussions for real estate markets around the world. For more information, please click here to view an article posted on World Property Channel.