The Housing Market According to Fannie Mae

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The housing market has been making big news lately, and it seems everyone has something to say about home prices, inventory and mortgage rates. To make sense of all the information floating around, editors of the LA Times met with Fannie Mae chief economist Douglas Duncan to get the scoop on what to believe about the current state of the market, and what to ignore. Here's a summary of Duncan's comments:

• There is no bubble, this is not a boom. Duncan does not view the housing market as robust, rather that rising home prices are simply bouncing back from very low bottoms. New construction is also moving at a slow but steady pace, however it is not expected to resume the pace it held at the height of the market.
• Don't fear the mortgage rates. Fannie Mae reports that there is little correlation between the increase in mortgage rates and home prices and Duncan predicts that while sales may decline, home prices will continue to increase. Duncan also doesn't see a second surge in rates in the future, but rather a gradual increase.
• There is no longer shame in renting. Ownership is still part of the dream, but renting has become a larger part of the norm. Investors have purchased single-family homes since the boom and families who were drastically burdened by the recession are renting to "recreate" the home ownership experience. And "downgrading" to renting no longer means that your home owning days are over, Duncan says many who lost their homes will own again.
• It's true, it is a good time to buy. Although home prices are up from their rock bottoms, they are still considerably low as are mortgage rates despite to recent spike. However Duncan warns, "You should only buy a house if you can afford it."
• Investors: a possible risk. Investors have played a crucial role in the market recovery. However it is possible that as new construction begins to take off, investors could sell their holdings, which could cause decline. Duncan urges investors to watch construction which acts as competition.

Riskin Associates has seen a renewed energy in the high-end market in the recent weeks. Many high-end listings in Montecito are receiving back to back showing requests and multiple offers, proving that the competition is stiff across all branches of the market.

A Riskin Associates Listing Catches the Wall Street Journal's Eye

An Artful Flip in Montecito - WSJ.com

Riskin Associates is proud to represent some of the most unique and exquisite homes in Montecito and Santa Barbara, and we are so flattered that national real estate news outlets recognize our listings for their individuality and luxurious qualities. This time one of our more recent listings is enjoying the spotlight as the Wall Street Journal's House of the Day. This contemporary hacienda on Via Manana is just steps from the world famous San Ysidro Ranch and Montecito's extensive hiking trails.

The home has been extensively renovated by Montecito design team Kirsten and Darrell Becker of Becker Studios. Kirsten Kemp Becker is the former host of numerous HGTV interior design shows and affords her experience and expertise in interior design to the homes which her husband Darrell renovates to maximize each property's livable space. For their latest endeavor, Becker Studios outfitted the home with luxurious, low maintenance finishes and landscaping, to evoke the feel of historic Montecito haciendas.

To learn about the uniqueness of the proeprty that caught the eye of the WSJ, click here. For more information on the property, please contact Riskin Associates.

Southern Santa Barbara County Market Trends

Trends for Southern Santa Barbara County Real Estate Market

The real estate market has seen an interesting set of trends throughout 2013. Across the country, sales soared during the month of May, taking a dip through June and July as mortgage rates increased dramatically. Santa Barbara County's southern region mirrored these trends with May 2013 showing the highest number of sales in the last eight years followed by a hefty decrease during June and July. However, this lull in the market has not worried agents or industry experts. Last year was an incredible year for the market, showing significantly higher sales than several years prior nearly each month, and 2013 has followed this trend showing higher sales each month year over year up until June. Housing prices have increased with increased demand throughout much of 2013 while inventory has remained low. The second half of 2013 is forecasted to be as active in the market as the first two quarters so long as mortgage rates remain at a manageable level. A healthy housing market is in direct proportion with a healthy overall economy reports Forbes Real Estate!

The right neighborhood..how do you know?

A Riskin Associates Montecito listing

It's the old real estate adage, "location, location, location!" You're heard it time and time again, but what does it mean to you? A neighborhood can be many different things, but what makes a neighborhood great? MSN Real Estate's Melinda Fulmer gives us some insight.

• People and place: People in the area make small adjustments and improvements, and these small changes can add up to the perception of a larger movement within the community. When an area is "up and coming" it usually means it is seeing a number of things happening at once. Someone adds a small shop, a new park bench, or a new open-air market. These changes seem minuscule when they stand alone, but when paired together, they add up to the flourishing of the neighborhood's character. They allow interaction between community members, which results in, well, more change. In short, it's the character of the people that determine the character of the place.
• Location location location. This should actually read: opportunity, opportunity, opportunity! Access to well-paying jobs, efficient public transportation, and abundant shops and services all create opportunity for the people who live in the area to improve their lives, be it financially or socially. So opportunity and access to the utilization of these important community aspect are what make the difference when it comes to the desirability of an area.

The next time you hear someone say "location location location" ask them exactly what it means to them to be in a "prime" location. Does it mean great weather? Privacy? A good school? All of these aspects are important, but to each home buyer, what makes a community great is more than just a great lot.

Party at the Polo Fields!

Riskin Associate Sarah Kelly presents the trophy to Team Restoration Hardware

While the sun was shining in beautiful Montecito, Riskin Associates broker and Christie's International Real Estate affiliate, Village Properties  hosted a day of field-side fun. Sunday, August 18th the USPA Bombardier Pacific Coast Open was hosted at the Santa Barbara Polo & Racquet Club! Village agents invited clients and their families to enjoy the games from a private field-side tent and catch all the action. Refreshments and hors d'oeuvres were served as players raced across the field in exciting style. Rebecca Riskin attended with her daughter Julia, marketing director Phoenix Smith also showed up to take in the games and partner Sarah Kelly presented the trophy at the close of the afternoon!

Sarah Kelly, Rebecca and Julia Riskin and Phoenix Smith catch the games field-side.

California Home Prices? They're up too!

Riskin Associates Montecito Listing

News is spreading quickly that the US economy is rapidly approaching a full-blown recovery! All over the country people are gaining confidence in their investments and are returning to their pre-recession economic standings. Housing markets, unemployment and the stock market are returning to levels which reflect a healthy economy, and everyone is feeling the warm and fuzzies. Californian's in particular are jumping for joy as across the state homeowners are watching their home values skyrocket.  Leverage Global Partners is reporting that this time last year, the average home value was $320,990. But 2013 is blowing that number out of the water, with an over $100K increase to $428,510! Thats 33% in one year!  Aside from the rise of home prices, other factors also indicate a strengthening market. Riskin Associates recently reported that a pick up in the luxury home market indicates confidence of affluent demographics in the economy as "discretionary spending" increases. Riskin Associates is excited by the news of increasing home prices in California and across the nation!

Deer Lodge is being featured on BRAVO's Property Envy Tonight!

The pool and patio at Santa Barbara's Deer Lodge!

Riskin Associates is excited to announce that our listing, Deer Lodge, will be featured on BRAVO network's new real estate show Property Envy. The show looks inside some of the county's most unique and distinctive properties as a panel of comical real estate personalities provide commentary. Deer Lodge fits the bill of the show, an incredible property with amenities akin to the coolest summer camp you never had the opportunity to attend. With 180 acres of hiking trails, sport courts, mountain view terraces, pool and spa, game room, and multiple structures with five star sleeping accommodations. Riskin Associates will be watching as the cooky panel of Property Envy sounds off on this and a number of other amazing properties tonight on Bravo! For airing times, check your local listings!

Why Luxury Real Estate is a Vote of Confidence for the U.S. Economy

A luxury montecito estate

The U.S. economy is in full recovery mode! Over the last year, middle class families have jumped at the opportunity to purchase homes with record-low interest rates, contributing the boost in the market. Homes priced under $1 million rose 11% in price during the first half of 2013. Now the luxury home market is gaining momentum as well, with homes priced over $1 million jumping an average of 37% during the same time frame. According to an article released by Financial Post, these are the highest numbers seen since the market's height in 2007. The article goes on to explain that the luxury market tends to follow (closely) behind the broader market, as luxury property purchases tend to be "discretionary spending" and generally waits until a stable market is experienced.

This upswing the in real estate market is a sign of widespread economic growth.  According to the article, economists predict a U.S. economic expansion of 2.3% in this quarter alone. How does home purchasing indicate general economic growth? Home buying spurs consumer spending, with decorating, remodels and entertaining.

Wealthy families are gaining confidence in the economy as they are beginning to see stabilization of their investments, and beginning to purchase high-end homes. For this reason, the surge in the luxury real estate market reflects a vote of confidence in the broader economy. Riskin Associates is excited by a recent article published on AOL Real Estate which named Santa Barbara as the #3 city seeing the highest rate of market rebound in the US!

Trending: Luxurious, Low Maintenance Finishes!

One of the fastest growing trends in luxurious residential interiors are environmentally friendly and low maintenance finishes. Designers are searching far and wide for unique, sustainable, and easy to live in materials to outfit homes. These days, homebuyers want durable finishes that can withstand day to day living, while maintaining lavish design and aesthetics. While classic materials will always be in style, fresh new materials are taking over our homes. Take a look at the luxurious finishes in the latest Riskin Associates listing...

...Designed by Montecito design team Becker Studios, this contemporary hacienda is adorned in low maintenance materials such as wide-plank drift wood oak floors, combed Chinese basalt, concrete, Lagos Azul and Arival Spanish  Limestone and Calcutta marble. The landscape design acknowledges Montecito's temperate climate, utilizing low maintenance succulents to create attractive gardens, while oak and olive trees line the gravel drive.

Want an inside look into this fabulous hacienda? The home will be open this Sunday from 1pm-4pm, 770 Via Manana, Montecito.

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Santa Barbara's Old Spanish Days is back!

Santa Barbara's Old Spanish Days banner

One of Santa Barbara's longest standing traditions is the celebration of Spanish and Mexican heritage during the Old Spanish Days festival. Beginning in 1924, Santa Barbara has delighted in the traditions and pageantry of the vaqueros and vaqueras, the horsemen and cattle herders of Spanish Mexico! With dancing, music, performances, delicious comida and parades, Santa Barbara comes even more alive with the sights, sounds, and aromas of Fiesta! Kicking off on July 31st and continuing the party until August 4th, downtown Santa Barbara's famous State Street will be filled with locals and visitors congregating to enjoy all that Fiesta has to offer. Each day offers an exciting schedule of events, all centered around celebrating aspects of the Spanish and Mexican culture. With fun for the whole family, Riskin Associates invites everyone to join the fiesta and take advantage of yet another fantastic opportunity to enjoy this most incredible coastal city! Viva la Fiesta!!!!

Santa Barbara Home's One of the Fastest Rising List Prices in California!

CAR Top 7 Metros

The California Association of Realtors has released the top seven metropolitan areas with the fastest rising list prices, and Santa Barbara is #2! With a 38% year-over-year increase, Santa Barbara comes in just behind Sacramento. According to the CAR, the median list price of homes in the Santa Barbara area is just under $700,000. According to leading real estate professionals, nearly every neighborhood in Santa Barbara has seen an increase in list prices since the beginning of the year. Many listings are receiving multiple offers and offers coming in at full price. This active summer selling season is motivating home owners to put their homes on the market, and commanding top dollar.  Although the first quarter of 2013 was quiet in the luxury real estate market, the market has picked up significantly with multiple new properties coming on the market every week. Riskin Associates is excited by the active market and is reveling in this busy time!

Young Buyers Investing in Luxury Properties!

outdoor dining in Montecito california

The Wall Street Journal is reporting a boom in younger demographics purchasing luxury real estate! As the market continues to heat up, buyers in their 20's and 30's are getting in on the high-end action. In a never before seen trend, young adults across the country are skipping the "starter home" and investing $1M+ in their first real estate purchase. As Riskin Associates reported in a recent blog post, foreign buyers are a large market for real estate investment and as the WSJ reports, many of those buyers are young heirs, looking to purchase property in the US. Domestic parents are also offering a helping hand to their adult offspring's real estate endeavors, often gifting or loaning substantial down payments or combining resources with their adult children to purchase a home at a higher price point. While Montecito holds a reputation for boasting ultra-luxury real estate and a casual, relaxed community, near-by Santa Barbara offers a plethora of fun and exciting adventures for young adults and families alike to explore while searching for the perfect luxury home.

Village Properties' Top 10 Celebration!

Village Properties Top 10 Realtors

Last night, Village Properties honored the company's top 10 agents with a celebratory dinner at Santa Barbara's El Encanto Hotel. Riskin Associates congratulates our fellow Village agents and applauds your hard work and dedication!

Foreign Buyers are Snatching Up Luxury Real Estate

Hand shakes close many business transations

AOL Real Estate is reporting an influx in foreign homebuyers with staggering figures. Between March 2012 and March 2013, foreign buyers spent over $68 billion in real estate! Interestingly, Chinese buyers are taking the lead in purchases, contributing 18% of that $68B. The article reports that Chinese buyers spend more on real estate than any other foreign demographic and nearly 70% of their purchases are made in cash. California is their location of choice for home purchases; last year, more than half of the homes sold in California went to Chinese buyers!

Interestingly, these Chinese buyers do not spend their time in the homes they buy. Most buyers are wealthy industrialists and real estate tycoons who spend less than half the year in the U.S. Motivations for purchases include California's abundance of prestigious school systems, with many purchasing homes for children receiving an education in the state.

Riskin Associates affiliate Christie's International Real Estate recently held a conference in San Francisco which focused on this emerging market, providing further insight into the motivations of Chinese buyers. With interests in winemaking and vineyard ownership as well as premier golf facilities, Chinese buyers are flocking to California to explore all that the diverse state has to offer.

California's luxurious neighboring communities, Montecito and Santa Barbara, are home to several prestigious educational institutions, multiple premier golf courses, and just a short drive up the coast, the Santa Ynez Valley is emerging as a first-class region for vineyards and winemaking.

As the economy continues to strengthen and foreign buyers contributing substantially to it's growth, the residential real estate market continues to experience a surge as well.

Sumptuous Sarabecca is the Belle of the Ball

Sarabecca perfume

Rebecca Riskin, together with her Husband Ken Grand, has spent many months perfecting an all-natural perfume, Sarabecca, which has been named for Ken's two daughters Sarah and Rebecca, using only natural essence oils like vetiver, lemon, and an array of herbs. With two distinct yet harmonious fragrances, Day and Night, the duo provides a light and floral option ideal for sunny Spring afternoons and a silkier evening counterpart which is both warm and luminescent with notes of ginger and sage.

Respected perfume blog CaFleureBon.com has caught wind of this enticing new fragrance, and like those of us around Montecito who have had the pleasure of experiencing Sarabecca, instantly fell in love with each version of the sumptuous fragrance. A glowing write-up perfectly describes the whimsical flirtation shared by Sarabecca Day and Night. The article aptly details the story of Sarabecca's creation while providing fun facts about the processes involved, and those not involved (read: Sarabecca is not tested on animals).

Do you need to experience Sarabecca? (Answer: Yes!) Head to Cos Bar in Montecito's Lower Village, try it to be instantly transported a sun drenched field of summer wildflowers.

The Empire State Building Receives 2nd Offer!

The Empire State Building

In honor of America's 237th birthday, Riskin Associates would like to report on a developing story posted by the Wall Street Journal regarding one of the U.S.A's most famous and patriotic landmarks: The Empire State Building in NYC. Currently owned by 2,800 shareholders and controlled by New York Family The Malkins, the building has received two unsolicited bids for purchase, the first at $2 billion offered by a company run by New York real estate investor Rubin Schron and the 2nd, coming in just slightly higher at $2.1 billion, was offered by an undisclosed party. The Malkins have received support for the plan to sell from 80% of the stakeholders, however a legal battle is brewing between the the remaining 20% who have opposed the plan. While none of the mentioned parties have commented on their plans moving forward, this second, mysterious offer may is certainly adding a new dynamic to an already intriguing real estate story!

Housing Market's Recovery Barometers reads: 61%

Trulia reports the housing market is 61% back to normal.

Online real estate giant Trulia's Housing Barometer charts the market improvement each month, tracking how quickly the housing market is moving "back to normal." An article posted on Forbes.com's real estate section discusses the three key pieces that paint this market picture for us:

• Construction starts: this represents the number of new homes being built throughout the country. Increased number of construction starts equates to housing availability and inventory for homebuyers. In May, starts were over 900,000, a healthy boost from April up 7%.
• Existing home sales: As inventory begins to expand, we begin to see a rise in sale of existing homes. Just over 5 million homes sold in May 2013, up 4% from April and a whopping 23% increase year over year. May was also the 4th straight month of inventory expansion.
• Delinquency + foreclosure rate: As we see the market begin to regain a sense of normalcy, we want to see this number drop. And in May, thats exactly what it did, to 9.13% from last years 11.08%. Fewer people are falling behind on their mortgages gently pushing the delinquency + foreclosure rate down. It is currently 57% back to normal.

By comparing these numbers to (1) their pre-recession "normal" numbers and (2) the numbers at their worst, we are able to see the market's recovery rate, exactly how close we are to a full recovery, and when we can expect that 100% recovery we are all anxiously awaiting. One year ago, the market was just 35% "back to normal" and this is the first time the barometer has crossed over into the 60th percentile.

We are The Wall Street Journal's #11!

The Wall Street Journals #11 real estate team by volume, Riskin Associates.

This morning The Wall Street Journal and REAL Trends released their list of the top 250 real estate agent teams in the county. Riskin Associates is proud to report that we have captured the #11 spot in list of real estate teams by volume! A team of just three agents, Risk Associates sold a staggering $223 million in luxury real estate last year. As Christie's International Real Estate and Luxury Potfolio affiliates, Riskin Associates takes pride in listing Montecito's most distinctive properties and representing buyers with unique real estate needs.

Indoor Living, in the Great Outdoors

The pool pavilion at this Riskin Associates listing offers ample indoor and outdoor dining amenities.

With the sweet smell of summer in the air and abundant sunshine, getting outside is on everyone's mind. The Wall Street Journal recently published an article on the surge in upscale outdoor living space design. Citing the recent depression of the market, homeowners are looking to make their homes more useable. In 2010, the average cost of an outdoor kitchen was $30,000 two years later, homeowners spent an average of $40,000 on outdoor kitchens.

An increase in outdoor appliances is also a contributing factor in the upswing of outdoor living spaces design. Last year, Kalamazoo Outdoor Gourmet, a company that manufactures high-end outdoor living space appliances, released an outdoor dishwasher which features a "winterization mode" for the off season. The dishwasher costs $3,995. Other outdoor spaces feature custom mosquito repellent systems which discreetly mist repellent into the air during high insect seasons.

Although outdoor spaces are designed to be an extension of the indoor spaces, furnished outdoor spaces don't tend to yield as high an investment return as upgraded indoor spaces. Outdoor space, however livable, is not factored into the overall square footage of a property and usually return about 50% of the price-per-square-foot as indoor spaces.

Becoming more and more elaborate, outdoor spaces have been designed to include complete kitchens and dining spaces, televisions, full theater systems and even bathrooms. In Montecito, the incredibly temperate  climate we enjoy is ideal for upgrading and enjoying your outdoor space to include not only pools and fireplaces, but also kitchens, dining and living spaces. Many Riskin Associates properties already offer stellar outdoor spaces that are ready to move you outside to take advantage of our year-round, summer-like weather.

An outdoor kitchen in a Montecito home

This romantic outdoor dining space is complemented by an outdoor kitchen.

This Montecito property is perfectly designed for entertaining.

Parking Space...A Hot Commodity

The motor court and ocean view of a Montecito estate.

Here in Montecito, it comes as little surprise that a property, or just the property tax, could run a home owner half a million dollars, with home prices ranging from under one million to well over fifty. Fortunately, when you pay a premium for a luxury property, parking is usually included. This however, is not the case in other areas of the country. This morning's airing of The Today Show ran a segment on parking availability in metropolitan cities, specifically San Francisco and Boston. Shockingly, an 8x12 foot parking space  near the Giants home field in San Francisco sold for a whopping $82,000! According to the segment, local realtors report that a reserved parking space can add up to $100,000 to the value of a home. And if you think $82K is outrageous for a simple convenience such as parking, two tandem spaces in Boston recently sold for $560,000. We'll let that sink in.