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.

All Is Calm, All Is Bright! The Lady's Gift Guide

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Forget the sugarplums, visions of jewels and dresses are dancing in her head this holiday! The glittering season calls for sparkling attire and a fresh, rejuvenated spirit. But fret not, we have scoured Montecito compiling a list of the most luxurious and stylish gifts certain to enchant the women in your life. Read on to take the guesswork out of shopping for your ladylove's holiday gift.

1. Parker EXCLUSIVE.Let her shine at every holiday soiree in this glittering Parker EXCLUSIVE Racerback Sequin Dress ($398). Montecito's newest boutique INTERMIX in the Country Mart carries the dazzling cocktail dress and a plethora of  designer apparel and accessories.

2. Echoz Crystals. The earth's healing energy and chic style combine in these designs by Echoz Crystals. Echoz Crystals necklaces are designed with simplicity and elegance, each necklace is uniquely and carefully handcrafted. The crystal pendants create a bold statement, trumping the need for other pieces of jewelry. With a fantastic price point (necklaces start at just $30) you can gift your girl a collection of these beautiful, metaphysical pieces.

3. Antik Batik. An unique piece inspired by the designer's global travels, this Mirrored Ale Wallet by Antik Batik ($325) is sure to be appreciated by your lady all year round. Intricate embroidery and beadwork applied to exquisite leather create a piece both refined and relaxed. Visit Calypso St. Barth in the Montecito Country Mart to admire this remarkable clutch.

4. EVE LOM. Give the gift of beauty this year with EVE LOM's Ultimate Collection ($275). Montecito Country Mart's SPACE.NK.apothecary carries this luxurious set which includes an array of products designed to enhance her natural beauty.

5. Montecito Yoga. Inner peace is a priceless present, but you can help her find it with a year of unlimited yoga sessions at Montecito Yoga ($1700). Class schedules are flexible, accommodating those who enjoy morning and evening sessions.

This wraps up our holiday gift guides for 2013! It has been yet another year of working with fantastic clients and lovely agents. Riskin Associates wishes all a joyous holiday and a wonderful new year!

Holiday Gift Guide: The Gentleman's Wishlist

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Looking to impress the man in your life with the IT gift of the year? Fear not as 2013 did not disappoint, with a list of exclusive gifts and gadgets from luxury electronics to designer accessories certain to delight the most distinguished gentleman! Read on to find the area's most lusted-after wishlist.

1. Sonos Wireless Music System.Santa Barbara electronics company Sonos has quickly become a household name with its line-up of high-tech sound systems. Hifi speakers and audio components distribute your music collection throughout the home, allowing you to create a unique atmosphere for each room by customizing the soundtrack - controlling the entire system from your preferred device. Find it at Santa Barbara's Home Integrated Technology. (Play:5+Bridge Gift Pack, $399).

2. Louis Vuitton Steeve Men's Bag.Louis Vuitton's coveted trademark checkerboard design adorns this stylish and functional men's bag. For business or pleasure, the versatile bag holds all the important possessions to take your man from the boardroom to the gym and from the gym to dinner without a stop in between. Find this fashionable gift at La Cumbre Plaza's Louis Vuitton boutique. (Steeve Men's Bag, $2,600)

3. Taka Puna Bespoke Suits. Luxury menswear designer Tom Ford made 2013 the official year of men's made to measure suits. Custom made suits in crafted in the finest textiles is the ultimate in luxury gift giving. Make your man the eye candy of every holiday soiree by outfitting him in a tailor made suit by Santa Barbara's premier bespoke tailor, Taka Puna. (Starting at $1,950).

4. Breaking Bad - Complete Series. Breaking Bad, the men's entertainment obsession of the year. Did your man miss out on the action? Is your TiVo backlogged with saved episodes he watches over and over? Remedy these tragedies with one easy gift - the complete series DVD gift set. Find it on Amazon.com. (New from $470)

5. Burberry The Britain.  Owning a fine timepiece is a symbol of accomplishment and status. Shower the gentleman in your life with praise and show your appreciation for the hard work he puts in all year. The Burberry Automatic Alligator Strap watch is a modern take on the classic Burberry design. Find it at Nordstrom in Santa Barbara's Paseo Nuevo. ($1,995)

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.

Oprah's Montecito Auction Makes Headlines

In case you've been living under a rock, media mogul and billionaire Oprah Winfrey owns a massive piece of  Montecito real estate, which she affectionately calls "Promised Land." Recently Oprah told reporters the estate, reportedly worth upwards of $85 million, is undergoing a major renovation to allow the residence to "reflect her true self."

Part of Oprah's home makeover includes a tremendous unloading of furniture and artwork which, according to Oprah's interior decorator, don't "have anything to do with" the mogul. So what does Oprah do when she needs to get rid of enough furniture to fill a 23,000 square foot residence? She hires Kaminski Auctions to get rid of it for her, donating the proceeds of the sale to her leadership academy for girls in Africa.

The auction will not only include items from her sprawling Montecito residence, but her homes across the country, including those in Chicago, Maui and her Indiana farm.

The auction is being held just a stone's throw from Montecito in Carpinteria on November 2nd beginning at 10am. Kaminski will host a special preview of items for sale on November 1st from 5-8pm. Tickets for the preview are on sale for $100.

Montecito is known to be a celebrity hideaway, with a long list of Hollywood heavy-hitters owning homes or visiting in order to escape the constantly prying eyes of the paparazzi.

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.

3 Ways to Make More Time!

Everyone has their own version of a "busy schedule" and while every industry has unique requirements for how much time is needed to put in in order to be successful, the bottom line is we all need more time. Between careers, social lives and personal time, it seems that nearly every hour of the week is blocked off for something and nearly everyone is asking: how can I make more time? As real estate professionals in the busy markets of Montecito and Santa Barbara, here at Riskin Associates, we are constantly in search of ways to carve out more time for get things done.

Last week, Forbes came to our rescue with an article supplying a few useful suggestions for how to better manage our time. Here, we break down their suggestions for you (time saving!) or click here to read the full article.

• Free time doesn't have to be available time. When you see a block of time in your calendar that hasn't already been dedicated to an event or activity, fight the urge to fill it with the next invitation. Everyone wants to take advantage of worth-while opportunities, but saying no in order to leave a Wednesday evening or Saturday afternoon open in the calendar will allow you to recharge your batteries and take time for yourself. Being committed to another event doesn't have to be the only reason to turn down an invitation.
• Put it on the calendar. Yes, you read that correctly. And as oxymoronic as it sounds, filling your calendar will allow you to get more things done. Here's the catch, fill your calendar with the tasks that should get done every day/week/month and put them on the schedule for the next three months. If it isn't on the calendar it won't get done. Are weekday exercise sessions routinely pushed to the bottom of your list in favor of that early morning conference call? Do personal administrative tasks (bill paying, trip planning etc.) get put on the back burner due to networking events? Schedule time for these tasks for the next 2-3 months. The time doesn't have to be set in stone, but if time is allotted for these tasks early, you can easily move them as needed. Just be sure to move them, not remove them from the calendar.
• Get this: Sometimes time is more valuable than money. Do you despise the time you feel is wasted by cooking meals and washing dishes every night? Doing laundry on the weekends? In some cases, forking out the extra money in order to save time is well worth it. Eliminated stress, completing more important or urgent tasks, and allowing more time for relaxation are all worth the price difference in paying for a meal delivery system or housekeeper to help with cleaning and laundry. They say 'time is money' but maybe they could be saying 'money makes time.'

With some new insight into how to find more time in your schedule, do an experiment on time management. Follow these suggestions and let us know if you found these tips helpful!

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.

Weekend Food, Fun & Sun in Santa Barbara!!

The SOL Food Festival in Santa Barbara has fun for the whole family!

Santa Barbara is renowned for it's stretches of sandy beaches, exciting events such as the SB International Film Festival and of course, it's profusion of delectable culinary offerings. But restaurants and cafes aren't the only spots in Santa Barbara you will find food and fun combined! Santa Barbara residents and visitors regularly enjoy festivals and celebrations that prove to be a feast for all the senses! Santa Barbara offers year-round opportunities to appreciate the beautiful bounty of the area. From the Solstice Festival in June to Octoberfest fun, and lets not forget the annual Holiday Parade, each season has it's own way of partaking in the excitement! As we head into the fall season (which, in Santa Barbara, bares a striking resemblance to Summer) harvest fun is  everywhere! This Saturday, the SOL Food Festival will pay tribute to local farmers, chefs, and organizations  throughout SB County. The festival, which will be held at Plaza Vera Cruz Park on Santa Barbara street between Cota  and Haley Streets, will feature several different stages each boasting their own theme such as Making Change Stage  and Hands On Kitchen Stage. We've included the festival map to the left! Bring the family out to Plaza Vera Cruz Park for a day of fun, food, music and of course, Santa Barbara sun!

Figueroa Mountain Brewing Company Figtober Fest

Another way to enjoy the beauty of Santa Barbara's fine offerings is directed to our adult residents and visitors. The new "it" locale for laid-back dining and drinking is Santa Barbara's up and coming neighborhood, lovingly referred to as The Funk Zone. This area of SB was once known for its industrial atmosphere, but star chefs, breweries and sommeliers are breathing new life into the area, giving it a relaxed yet stylish feel. New restaurants and tasting rooms are popping up what seems to be weekly, and the activity is getting everyone's attention.

This weekend, Santa Barbara County favorite Figueroa Mountain Brewing Company is hosting FigtoberFest in two locations, Buellton and the Santa Barbara Funk Zone. The Funk Zone location will feature beer tastings, guest breweries, wine tastings, food trucks, live music and costume contests! In keeping with the Oktoberfest spirit, traditional German garb is encouraged!!

Sunday, work (or watch) off your food/beer coma by heading down to West Beach and take in the AVP Pro Beach Volleyball Tour, going on Friday - Sunday. Click here to buy your tickets to the action!!

Riskin Associates invites you to visit Santa Barbara and get a taste of what everyday life is like in paradise!

AVP

The Luxury Market Goes To The Young and the Wealthy!

The National Association of Realtors has reported on a very intriguing study conducted by the Luxury Institute, which found those who are driving the luxury real estate market are not those middle-aged CEO's but younger buyers with a fresh take on what is "in" in luxury real estate. Looking at young buyers aged 21 or older with a minimum income of $250,000, the survey concludes that these young buyers are willing to pay more than buyers of similar wealth but aged over 55. On average, young buyers spent over $2 million on their most recent residential property purchase which was almost twice as much as older buyers spent! The article by RealtorMag quotes the CEO of the Luxury Institute: “Luxury homes are for more than successful and retired empty nesters,” says Milton Pedraza, CEO of the Luxury Institute. “Today’s luxury buyer is both dynamic and diverse, and it’s reflected in the homes and products they’re buying.”

However, it's not just how much young buyers are spending, but also what they are spending it on that is of note. The amenities at the top of most young buyer's wish lists are outdoor kitchens, gyms, home theater systems and garages to house 4+ cars! These amenities all showcase the desire to lead active lifestyles, raise families or entertain in their homes and make the most of their purchases. Despite these new age desires, the oldest adage in real estate still applies: Location, location, location! Location is still the most important factor in property purchases, with only 6% of young buyers purchasing homes outside of the U.S.

Calling all you young buyers looking for the perfect property! Take a peek into these luxury Riskin Associates properties and tell us, do you see something you like?

A home gym in a Santa Barbara estate

This contemporary Montecito property boasts one of the most luxurious outdoor dining areas.

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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.

Year's End Market Forecast

A Montecito estate listed by Riskin Associates

With two weeks of mid-80's temperatures here in Montecito, the team at Riskin Associates is having a hard time believing summer is almost over. With a busy selling season, fall is sneaking up on us and reminding us that 2013 is coming to a close! Thus far, the market has been booming this year: the low-end seller's laughed all the way to the bank due to bidding wars, inventory was tight and suddenly high-end listings are getting escalating activity! With the exciting movement in the market, agents, buyers and sellers are all looking at the market forecast for the remainder of 2013.  According to Forbes Real Estate writer Morgan Brennan, here's where the market is going:

• Don't worry about bursting your bubble. While prices are soaring at impressive rates, they are not catching up to the pre-burst levels. Prices are still lower than they were back then, in fact there are still many undervalued area's across the country.
• Prices will continue to increase through 2013. Experts project that 2013 will close with home prices anywhere from 6-12% higher than last year's based on supply and demand. However, the progress is expected to slow due to increasing inventory and high mortgage rates.
• Inventory won't stay low for long. Early in 2013, inventory hit a 12-year low, but is already starting to increase. Realtor.com president Errol Samuelson expects that inventory levels will flatten out into fall, but surprisingly, prices will continue to appreciate. New construction will increase as homebuilder's will feel renewed confidence and begin new developments.

2013 has seen some of the strongest market increases since the recovery began. A healthy competitor for the banner year that was 2012, real estate professionals are anxiously watching for 2013's grand finale.

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!