Montecito Luxury Gift Guide: Deck The Halls

To get everyone it the mood for the holiday season, we've put together a 2012 Montecito Luxury Holiday Gift Guide. Each week we'll cover a new topic, including gifts for the home, him and her. Happy Holidays! PART 1: DECK THE HALLS

1. This year succulents have become in staple in home decor, adding beautiful accents in seaside communities such as Santa Barbara and Montecito.  This gorgeous faux succulent wreath by Botanik of neighboring Summerland is the perfect addition to holiday decor and will last year after year.  Botanik Succulent Wreath $195

2. What could be more luxurious than toasting family and friends with a crystal-clad champagne flute? Swarovski Crystalline Toasting Flutes, $390

3. Don't forget the perfect wine for your upcoming holiday parties. Look locally for a varietal that will wow even the most discerning guest. Just this year, Wine Spectator awarded Vogelzang Vineyards with an outstanding rating for their 2010 Sauvignon Blanc Reserve, receiving 92 points. In sunny Santa Barbara, a Sauvignon Blanc pairs perfectly with appetizers and seafood even during the winter holidays. Want to really impress your guests? Purchase the entire 180-acre Santa Ynez Valley Vogelzang Vineyard, currently listed with Rebecca Riskin & Associates. 2010 Vogelzang Vineyard Sauvignon Blanc Reserve (12 bottles), $384; Vogelzang Vineyard, Happy Canyon, $7,250,000

4. When decking the halls, don't forget to deck your pooch! To make a real impression at your next holiday gathering, fasten this striking genuine leather bow tie on your favorite four-legged friend and turn on the charm. D.O.G. Pet Boutique Bow Wow Tie Collar, $69.95

5. Deck the halls of your Santa Barbara or Montecito Beach Home with a fabulous driftwood tree. Restoration Hardware's decorative trees are handcrafted by artisans with natural driftwood and promise to provide the perfect touch of seaside shabby chic. Restoration Hardware Driftwood Tree (35"), $125

Pending home sales at promising levels

As another good sign for the housing market, the National Association of Realtors reported another increase in pending home sales last month. The Pending Home Sales Index increased by over 5% in October, signalling the highest level in over five years. Pending home sales have risen for 18 consecutive months on a year-over-year basis. A chief economist from the National Association of Realtors noted that we are finally feeling the impact of steady job creation and consumer confidence. Learn more here...

Delayed financing the new norm?

In real estate, all-cash buyers are king. It's common knowledge that buyers who come in with all-cash offers can close quickly and offer the most secure deals, often beating out other offers backed by conventional financing. But with recent mortgage rates at record lows, financing has also become very appealing. So which option should you choose?

A recent phenomenon called delayed financing is becoming a common practice of affluent buyers. Instead of deciding between bringing a strong, all-cash offer and the benefit of record-low financing, buyers are choosing both. With limited inventory and competitive bidding, these buyers are coming in with strong, all-cash offers, only to turn around and secure financing as soon escrow closes. Rarely used two years ago, delayed financing is becoming very popular in >$1 million coastal housing markets. To learn more, check out this recent Wall Street Journal article.

Lucky "8" Real Estate

A recent article in the Wall Street Journal featured lucky numbers in real estate. Apparently the number 4 is very unlucky for Asian buyers, similar to the word for "death." Both addresses and listing prices should avoid this number. On the other hand, the number 8 is very lucky, similar to the word "prosperity" or "wealth." Lucky for us, we have a listing with three 8's in the address! Our listing at 888 Lilac Drive is at the height of luxury and world-class quality, built as a toxin free home with timeless elegance. Perhaps it will bring a lucky buyer a lifetime of prosperity, along with endless ocean views, a swimmer's pool and Wimbledon standards lawn!

Where Do Our Buyers Come From?

A report titled "Who's Buying Homes in Santa Barbara County" was recently released following a local survey. The findings included the origin of buyers, primary or secondary home purchases, first time homebuyer stats and where sellers were moving on to. A total of fifteen realtors participated in the survey, providing details on 165 closed sales, while our own Village Properties provided data on 204 closed sales, all from the first half of 2012. The survey found that 69% of buyers came from the South Coast, while only 31% came from out of town. These numbers are consistent with the area's average over the past eight years that the survey has been conducted. Only 16% of buyers came from outside California, and an even smaller 4% came from outside the United States. Of the California buyers originating outside of Santa Barbara County, the majority came from the Bay Area and Los Angeles.

The survey also indicated that 58% of sellers appear to be downsizing, which is up 8% over the historical average. Also interesting to note, 36% of those downsizing indicated they are leaving the South Coast. While this may seem high, it's actually lower that the average calculated throughout the survey's history.

This got us to thinking....where do our buyers come from? As we specialize in Montecito properties of distinction, certainly our buyer base might look a bit different from the rest of Santa Barbara County. We pulled stats on our own 27 closed sales year-to-date and found the following. Only 22% of our buyers were local, as compared to Santa Barbara County's 69%. A much higher percentage of our buyers came from elsewhere in California. We also saw a higher percentage of international buyers, at 11% compared with the county's 4%. We plan to run the numbers again soon to keep tabs on specific high-end Montecito buyers.

Montecito Has 19th Most Expensive Zip Code

A recent article from Forbes listed Montecito as the 19th most expensive zip code in the nation. Montecito trailed markets like Los Altos, Beverly Hills and Rancho Santa Fe in California, while Manhattan's Upper East Side snagged the top spot.  The writers compiled their rankings with the help of a California company that tracks housing data, pulling pricing for more than 20,000 zip codes across the country for a 90 day period. The firm calculated the median asking price, median price change, average days on the market and local inventory. According to the report, the main factor driving today's listing prices in the most expensive zip codes this year is overall lack of inventory.

93108: Montecito, CA

Median home price: $3,236,765

Median price change: 3.6%

Average Days on Market: 228

Inventory: 194

Santa Barbara Market Makes Top 10 List Again

According to Realtor.com, western states continue to dominate the housing recovery in the third quarter of 2012. The site released its rankings of the top 10 turnaround towns, based on housing data from median list price increases, inventory levels and even employment rates. Santa Barbara was ranked 7th on Realtor.com's most recent list, while the metro area also made the Top 10 turnaround town list for the 2nd quarter of 2012. Western states especially have seen inventories continue to fall and median list prices increase year-over-year.

Santa Barbara's Stellar Market

More than anywhere else in the country, California metros are showing some of the largest year-over-year asking price increases according to Realtor.com. The Santa Barbara metro area tops that list, posting a 32.05% year over year increase, a staggering 6% higher than any other metro area nationwide. Complementing this trend, California metros are also posting some of the largest inventory declines.

September numbers are also in from CORT, confirming a continued improvement in Santa Barbara South County Sales over the past five years. Last month's closed sales were up 8% over September 2011. Here at Rebecca Riskin & Associates, we have had four closings in the past 30 days, with 3 more listings pending.

We've Gone Digital!

As you may have noticed, we've recently upgraded our printed, glossy brochures to electronic brochures for easy reading on the web! In this day and age, more and more buyers are looking to the web on their laptops, smart phones and tablets for up-to-the-minute information on real estate listings. In order to ensure that potential buyers can access all the information they desire instantly, they can now flip through our brochures electronically from our website. Our eBrochures also double as great marketing tools to email to agents and interested buyers on a whim. And while our beautiful oak display still hangs in the hallway of our Montecito office full of glamorous, glossy brochures, an equally beautiful digital credenza now hangs on our Facebook page. Each property's eBrochure can also be found on our website.

Record Week in Montecito

If anyone needs proof that the local real estate market has improved, take our sales record this week as a signal. Rebecca Riskin & Associates will close four escrows this week, a 2012 record for the team. With a flurry of activity over the summer months, the team not only took on more listings but received more offers. All four sales were the team's own listings, while two of the transactions were both buyer and seller represented. Meanwhile, Rebecca Riskin & Associates has had five new listings within the past month, including two pocket listings.

Santa Barbara Ranked Nation's Highest for Annual List Price Increases

A new report released this week from Realtor.com ranks the Santa Barbara metro area as the top region in the country for annual list price increases. Perhaps the high-end Montecito market is driving this number up, as we have seen a resurgence in the $10 million + market with 10 sales closed above this mark already this year. For the month of August, Santa Barbara had the 2nd fastest rising list price increase, with 5.34% month-over-month.

Statewide, California seams to be leading the way for current housing market stability. California was home to 8 of the top 10 metros for year-over-year inventory reductions and 5 of the top 10 metros for year-over-year list price increases last month.  In Santa Barbara, inventory is down considerably as our market heats up. Recent numbers from Realtor.com reveal a 35% decrease in inventory year-over-year for the Santa Barbara metro area. To learn more, click here.

Real Estate Market Roundup

It's time we checked in again to gauge the overall health of the real estate market, both nationally and locally. Here's a quick roundup on how the market is faring as we leave the fast-paced summer months behind.

A recent article in the Wall Street Journal indicated that home prices posted their strongest gains in six years during the first half of 2012, a clear sign that many of the nation's real estate markets have hit bottom. While this statement looks promising, it came with a warning: hitting bottom shouldn't be confused with full-on recovery.

The biggest news continues to be a lack of inventory in many markets, which is pressuring house prices to gradually rise. Inventories of existing homes are at an eight year low, while fewer distressed homes have hit the market and many sellers postpone listing in hopes of an uptick in price.

Meanwhile here in Santa Barbara county, south county sales are up 43% year to date. This is an incredible gain, with sales coasting steadily throughout the summer at a record breaking pace. Over the course of the last five years, local market trends have seen a steep drop in sales over the summer months, while this year we experienced a steep gain in May and a solid summer plateau.

On the lower end of the market, inventory is extremely low while many sellers try to ride out the market bottom. Here in Montecito, the high end continues to be very strong, and our office is a flurry of activity!

Award-Winning Montecito Home

We just got word that one of our listings here in Montecito is receiving an award! Next month, Qualified Remodeler Magazine will publish its annual Master Design Awards, recognizing the best in residential remodeling. 1134 Hill Road in Montecito, CA earned the Master Design Award this year with both the Gold and Judge's Choice Award!

The home, Villa Vicin' 'O Mare, is a wonderful transformation of a classic Montecito bungalow into a contemporary beach villa with seamless indoor-outdoor living. Redesigned by Santa Barbara architects Neumann Mendro Andrulaitis and remodeled by Allen Associates, impeccable attention to detail has been paid to every aspect of the home’s design, from the champagne limestone floors to the wide plane wood paneled ceiling.

Custom mahogany bi-fold doors and windows effortlessly connect indoor and outdoor living spaces, opening completely for endless entertaining opportunities. A glass-enclosed patio includes ample room for dinner parties, complete with an artistic wall of water and fire table feature.

Outside, a large garden oasis awaits with wandering paths through fruit trees, palms and towering bamboo. Generous patios, water fountains, a walled private garden and lush tropical landscaping allow for true indoor-outdoor Santa Barbara living.

Inside, an open-plan living space designed with yacht-like efficiency showcases exquisite, contemporary décor and interior details, revealing understated elegance. The eye-catching gas fireplace, featuring Rasmussen FireBalls, makes the living room feel sleek and modern while warm in ambience.

Beautiful double doors open on to a sunken master retreat, enhanced by a luxurious spa-like bathroom and private patio. A blown glass pendant chandelier adorns the freestanding soaking tub, overlooking a serene courtyard with an eight-foot privacy glass gate.

Located in the heart of Montecito and steps from Butterfly Beach, the Biltmore and Coral Casino, Villa Vicin’ ‘O Mare combines  the highest quality amenities for modern living in an exquisite 2 bedroom, 2 bathroom beach retreat.

The Village Properties Vacation Raffle!

We'd love for you to consider purchasing a raffle ticket from Village Properties to support The Teacher's Fund, established to help local public and private K-12 school teachers buy the supplies and books they so desperately need. Only 50 tickets will be sold, so your chances of winning a dream vacation are pretty good! The winner gets to choose their vacation of choice (Europe, Telluride, Pebble Beach/Carmel or Hawaii). The drawing will be held at the Futures Golf Tournament in Santa Barbara on Friday, September 21st (winner need not be present). Simply contact Rebecca Riskin & Associates to purchase your ticket!

Southern California Median Home Prices Hit 4 Year High

The LA Times reported today that the median home price in Southern California hit its highest point in nearly four years as buyers compete for fewer homes. The median is up over 8% from this time last year, and has been increasing steadily for six consecutive months. Last month's sales were also up 13.8% over July 2011, with approximately 20,500 properties sold throughout the six-county region.

While home prices in Montecito don't quite compare to the Southern California media price of $306,000 (according to DataQuick), we have been seeing full price or multiple offers in some high-demand price ranges. And as we reported last week, the high-end market at $10+ million is seeing a local resurgence.

The $10+ Million Real Estate Market Resurgence

We've been following some recent news regarding the high-end real estate market picking up in certain pockets across the country. For example, an estate in Miami just broke records for a single family home sale at $47 million, while New York and Silicon Valley keep making headlines. According to RealtyTrac, home sales of $1+ million are up 23% from one year ago.

Having seen a similar pattern here in Montecito, we decided to dig a little deeper to decipher our perception of the high-end market resurgence. According to the MLS, there was only one recorded closed sale at over $10 million in Montecito for 2011. Compare that to 2012, where year-to-date $10+ million sales already total 9. Montecito also had its first closing of over $20 million this year already.

Some experts explain the resurgence in closed sales by the drop in house prices, which have fallen 20% this year in the $1+ million range. Here in Montecito, we've definitely seen prices come down from their highs, but we've also seen some properties sell for prices above their previous sales price. Full price and multiple offers are also becoming the norm on well-priced homes in limited inventory ranges.

Why A Pocket Listing?

Pocket listings can be used by sellers and their real estate agents for a handful of reasons, but each pocket listing comes with a unique strategy in mind. Before we dive in to some of these strategies, which were highlighted in a recent article published by the RealtyTimes, let’s quickly define what exactly a pocket listing is.

Simply put, an agent may choose to list a home without listing in on the Multiple Listing Service (MLS).  They figuratively keep the listing in their pocket, instead of broadcasting it out to the audience of millions using the MLS. A pocket listing is thus an unofficial, off-market listing.

Pocket listings are generally a strategy of high-end, expensive homeowners looking for a unique approach to their house sale. Because of changing market conditions, however, pocket listings have become more mainstream.

Some sellers aren’t happy with current market prices, so they’re happy to wait for the right buyer to come along who will pay the right price, and will settle for the lack of marketing through traditional real estate channels. In a similar fashion, sellers can use a pocket listing to test the market quietly before taking the plunge.

Meanwhile, other sellers may select a pocket listing because of the ability to generate a quick cash sale, even if the pre-determined price is below market value.

Another issue with listing high-end properties in the MLS is the time on the market shadow that may follow a property if it sits for a period of time. This can give buyers the feeling that there’s something wrong with the home, or they may feel obligated to submit offers much lower than market value based of the length of the time the home has sat on the market.

Finally, pocket listings can be a great alternative for sellers who require privacy. Keeping their home out of traditional marketing channels can work in their favor when trying to avoid the media.

For more information on listing strategies, please visit our website. To read the complete article by RealtyTimes, click here.

Has the U.S. housing market finally turned the corner?

This week, Zillow reported an increase in U.S. home values for the first time in five years, marking a reported end to the slide of the real estate market. Numbers revealed a 2.1% increase in home values from the first to second quarter of 2012, the first of it's kind since 2007. Zillow's Real Estate Market Reports also highlighted a four month consecutive increase in national home values, while 2nd quarter 2012 home value appreciation was the highest it's been since 2005. The report varies widely across markets within the United States, however it appears that a gradual and steady increase in home values should become a reality for most of us. The worst could really be over! For more information on the market locally in Santa Barbara and Montecito, click here.

Guess Who Has the 2nd Hottest Real Estate Market in the U.S.?

This month we were thrilled to learn that Santa Barbara is the second hottest metropolitan real estate market in the United States! According to an article published by Forbes, our May median home prices were 30% higher than that of May 2011, while total home sales doubled. New listings are selling 20% faster than one year ago, while pending contracts are up a whopping 80%. Helping the Santa Barbara real estate market is the fact that it's simply one of the best places to live, and buyers see a value in that. In fact, there's a scarcity of inventory as local residents can still afford the median house price (the area enjoys one of the lowest unemployment rates in California.)

Bottom line? Santa Barbara has a hot, luxury housing market!

Click here to read the entire Forbes article. For more information about Santa Barbara area real estate listings, click here.

June Sales for Santa Barbara County Still High

The market is still strong this summer, with a huge improvement year over year. Check out the latest Cort graph highlighting year-to-date sales....the best summer by far in over 5 years! Here in our office, things just aren't slowing down. Two new listings this week!