Median Square Footage on the Rise!

A montecito estate with 13,000 square feet.

CNNMoney is reporting an upswing in homebuyers' preference for larger homes. As effects of The Great Recession continue to fade, Americans are purchasing larger homes once again. According to the Census Bureau, the median home size in 2012 was up 8% from 2009 at a record of 2,306 square feet. In 2013, home sizes appear to be growing even more, with Marcie DePlaza, a division president for GL Homes reporting that so far this year, her company is selling homes 7% larger than those in 2012. 

Access to credit may skew these statistics as mortgages for low- and mid-income home buyers are more difficult to get than for high-income buyers. With strict underwriting standards, homebuyers who receive loans tend to be a bit more affluent and can afford larger homes. Some predict that as mortgages become easier to obtain, median home sizes will drop, but current trend seems to be staying the course. People tend to prefer more space, and Jeffry Roos, regional president of homebuilder Lennar, credits affordability with the drop in home sizes during The Recession, "It wasn't that consumers wanted less space, many just couldn't afford more." In fact, homebuyers tend to buy homes larger than originally planned, 18-20% larger in fact. "The four-bedroom outsells the three-bedroom all day long" said DePlaza.

These statistics are promising evidence that the economy is in a healthy state of recovery, "People weren't buying SUV's during the recession either and they are again," DePlaza said.

Riskin Associates represents properties of distinction in Montecito, California and the surrounding communities of Hope Ranch and Carpinteria. The average square footage of Riskin Associates' listings is 7,668 sqft.

Happy Birthday Rebecca!

Sarah Kelly and Rebecca Riskin at Via Vai

The Riskin Associates team would like wish Rebecca a very happy birthday! Yesterday the team, Sarah Kelly, Dina Landi, Phoenix Smith and Sara Freberg treated Rebecca to an early celebration lunch at one of our regular lunch spots, Via Vai in Montecito's Upper Village. Happy Birthday Rebecca! 

Christie's Fine Estates & Fine Wine: A Perfect Pairing

A Santa Ynez Valley vineyard

Riskin Associates is a proud affiliate of luxury real estate giant, Christie's International Real Estate.  With our office in such close proximity to one of the world's finest wine regions, the Santa Ynez Valley, we are excited to announce the newest branch of the Christie's empire: Vineyards by Christie's. The new program will pair leading wine experts and first-class luxury real estate specialists with participants to provide the knowledge of industry authorities to assist in the accession of wine and wine-producing estates. Other services included with the program are in line with the five-star service Christie's and Christie's affiliates provide, and include personalized travel arrangements and language translation services. The Riskin Associates team is excited for Christie's newest endeavor and supports the ideal pairing of luxury real estate with fine wines! Cheers!

Village Properties Celebrates 17 Years!

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This month marks the 17th anniversary of Riskin Associates parent company, Village Properties! Co-founded by agents Renee Grubb and Ed Edick, the company has grown to over 150 agents across three offices, Montecito, Santa Barbara and Santa Ynez. Village Properties is proudly affiliated with Christie's International Real Estate and Luxury Portfolio, which extends the outreach of marketing efforts for the area's most distinctive properties and provides an elaborate network of agents who represent affluent buyers all over the world. To celebrate the incredible accomplishments and strides Village Properties has made in the industry, a fantastic soiree at Santa Barbara's elegant Canary Hotel was thrown. Agents and staff were invited to enjoy the beautiful Spring evening atop the Canary's beautiful rooftop terrace overlooking the sea and mountains while honoring their efforts over the past 17 years. After an incredibly successful year in 2012 and an energetic first few months of 2013, the Riskin Associates team was excited to attend and mingle with fellow agents and staff!

Hope's Dream Home - $50M

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Hollywood icon Bob Hope and his wife Dolores have listed their desert dream home for a cool $50,000,000. Set in Palm Springs, an area that in its heyday was a glamorous playground for Hollywood's elite, the Hopes have collaborated with renowned modernist architect John Lautner to create a visionary property of unsurpassed contemporary design. The sprawling 23,000 square foot home overlooks the Coachella Valley with views of the surrounding mountains. Completed in 1980, the home is described by Luxury Portfolio International as a "stunning structural symphony blending concrete, steel, and glass crowed by a curving copper roof." Boasting a tennis court, indoor and outdoor pools, a putting green and a pond with a waterfall, the Hopes' imaginative dream home was designed for all aspects of a leisurely and relaxed lifestyle while expansive terraces rest beneath the stars to create the ultimate entertaining paradise. Love contemporary architecture? Is $50M just out of your budget?  Explore these listings offered by Riskin Associates:

Chic Sophistication: an ideal illustration of contemporary style, this entertainer's property enjoys two guest suites, two pools, fantastic entertaining patios and the perfect location for strolling to Montecito's Lower Village to enjoy a glass of sangria or warm cup of coffee.

Inspiring Architecture: a collaborative effort by acclaimed architects Pierre Gabrol and Steven Ehrlich, this contemporary home is an artistic juxtaposition of clean, modern lines surrounded by timeless mature oaks, lush gardens and commanding mountain peaks.

What's for sale in Montecito for $4M?

Four Montecito homes for sale

Montecito's residential real estate market is buzzing! As the market picks up, we are seeing increased interest in distinctive homes for sale in the $4 million price range. A historically low inventory, currently listed in the MLS are 23 homes listed between $4M and $5M. Here are four Montecito homes for sale in the $4 millions. Below, get to know these unique properties and for further information, click the provided links. Enjoy these distinctive properties!

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Mediterranean Country Villa.  This superbly designed home lies in the exclusive community of Montecito Valley Ranch and enjoys a quiet cul-de-sac location and incredible mountain views. The expansive kitchen and adjoining family room provide incredible entertaining spaces and boast  breathtaking mountain views, while the main floor master is privately tucked down a hall just off the library. A one bedroom guest cottage provides additional privacy for guests or extended family. For more information on this property, visit Riskin Associates' website. MLS #13-1001

Charming California Country. Tucked at the end of quiet and charming Live Oaks road, just a short ways from Montecito's upper village, every room of this freshly updated home takes full advantage of sweeping mountain views. The elegant formal living and dining rooms, as well as the kitchen, family room, and master bedroom each invite in natural sunlight and mountain vistas through a wall of French doors and windows. To view more photos of this home, click here. MLS #13-798

Inspiring Architecture. Nestled among mature native oak trees and wildflower gardens, an impressive four bedroom contemporary home is a pleasing juxtaposition between timeless natural beauty and modern aesthetics. Designed in collaboration by famed architects Steven Ehrlich and Pierre Cabrol, gallery walls and soaring ceilings provide an idyllic environment for showcasing art. To see this masterpiece in detail, view the e-brochure here. MLS #13-1318

Historic Hedgerow Estate. Historic Boscobel, meaning in the midst of the beautiful woods, is a gorgeous and meticulously updated 1916 estate by famed F.M. Edwards. Original, period details are waiting to be discovered among modern and luxurious finishes throughout this historical five bedroom home. The grounds are perfectly manicured with expansive lawns and beautiful gardens, while a swimmer's pool lined by period columns invite summer swim parties or elegant evening entertaining. Discover Boscobel. MLS #13-1374

Representing Montecito's most distinctive properties, Riskin Associates is Montecito's #1 real estate team. Visit the team's About Us page and get acquainted with Rebecca, Sarah, and Dina.

Low Housing Inventory: A Country-wide Epidemic

a montecito home currently on the market

After a stellar year in 2012, the real estate market is experiencing a historically low supply of listed properties all over the country. An article by CNBC's Diana Olick discusses the current state of the market and cites several potential factors contributing to this painfully low inventory. According to Olick's article, listings are down 17% over March 2012 and potential contributing factors include that many Americans owe more than their property is worth, so a move could incur a great expense, which discourages homeowners from listing their property. Also, as home prices rise, many potential sellers may be waiting to see how high the prices will go before listing.

However, despite the low inventory, the pending home sales index is up 7% over March 2012, predicting an increase in closing sales. Across the country, pending home sales are inching upwards with the west seeing a 1.5% increase and the south is up 2.7%. The east coast stayed the same and the midwest is up 0.3%.

With home prices rising and an abnormally low inventory, the market is experiencing a fantastic season for sellers! Riskin Associates, Montecito's #1 selling agent represents properties of distinction in Montecito.

Santa Barbara's Diverse Residential Architecture

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Southern California's residential real estate is often misconceived to be a sea of red-tiled roofs and "Mediterranean" style residences, but Montecito begs to differ. A quiet drive along any of our charming streets feels like a trip around the world, revealing a refreshing mix of architectural eye candy inspired by all corners of the earth. From historic English tudors to functional contemporaries, Santa Barbara and it's surrounding communities of Montecito and Carpinteria offer a home to suit everyone's style preference.

Above, check out a collage of some of the area's most distintive homes, boasting unique architecture unparalleled by their neighbors.

Clockwise from top left:

This modern masterpiece was designed around ancient oak trees and offers gallery walls and abundant natural light, perfect for showcasing a collection of artwork; A French provincial style home is nestled behind iron gates opening to a bucolic, tree-lined drive; This incredible residence has been artfully infused with European finishes, 100-year old Tuscan roof tiles and antique French oak and limestone floors; A rustic mountain retreat awaits discovery in the hills of Carpinteria overlooking the Pacific coast; this historic English manor boasts a prestigious address in the heart of Montecito's golden quadrangle; Spanish-inspired La Candelaria is a sanctuary of richly colored walls, unique coffered and wood-paneled ceilings.

First Quarter Update for Santa Barbara's Real Estate Market

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Fellow Village Properties agent Carol Kruckenberg recently wrote an article for the Santa Barbara News Press which discusses the current state of the Santa Barbara real estate market, as well as reviews the market over the first quester of 2013. Carol sites a resurgence in the market based on a number of compelling factors, including the median list price for homes, which has risen 12% to $940,000 over last year. Low inventory has created a seller's market, which according to the article means that listings should sell in approximately 2.2 months. Last year, there were 414 homes to sell, this year there is nearly half as many at 287 homes listed for sale. Going back to 2011, there were 511 homes for sale. More encouraging evidence of market recovery stems from a recovery financial arena as well; last year, 30% of homes for sale were "distressed," meaning bank-owned or short-sale properties, this year less than half as many listings (12%) are "distressed." Carol's article also highlights the final sale prices of listings as evidence for a recovery in the area's real estate market, the number of listing's sold to date is the highest it's been in the last five years, including last year's banner year.

Carol's article also provides a number of valuable tips to both buys and sellers entering into the Santa Barbara area real estate market. Below, an excerpt from the article highlights a few of Carol's tips:

Here are some practical tips whether you are a buyer or a seller in this very active real estate market. If you are a seller, it is recommended that you hire a real estate professional to assist you through the process of selling your house/condo/mobile home.  If your agent has suggestions for you regarding the condition of the property, you will want to listen with an open mind.  It is best that you do not purposely underprice your property hoping for multiple offers; this strategy has been known to backfire.  With your agent’s help, come up with a realistic price for your home.  The important factors that guide pricing are location and condition.

If you are a buyer and need to finance the property you will be buying, get pre-qualified first.  This will tell you if you are financially capable of buying and the amount you can finance. It is recommended that you enlist the services of a real estate professional.  The agent will be able to keep you informed of properties that fit your specific requirements and may have the inside track on properties that may not be in the Multiple Listing Service.  The agent will then be able to guide you through the purchasing process.

The article makes sense of the market activity during the first quarter of 2013 in Santa Barbara's residential real estate market while providing valuable information and recommendations for navigating one's way through this most interesting seller's market, and Santa Barbara's #1 realtor team, Riskin Associates, applauds Carol's insight into the market and her dedication to the industry.

Southern Santa Barbara County Market Holding Strong

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Sales of residential real estate in southern Santa Barbara county continue to provide evidence of a recovering market. Compared to February, there were 23% more sales in March 2013. The first quarter of the year yielded 477 closed transactions while the first three months of 2012 yielded 410, a 16% increase in sales. With an incredible amount of success in 2012, Montecito real estate agent team Riskin Associates closed over $220 million and with the positive upswing the luxury market of Montecito is experiencing this year, the team is working hard to see another successful year. Check out the graph above for a visual representation of the sales in southern Santa Barbara county of the past six years.

Cash is King! (when buying a home)

Graph provided by DrHousingBubble.com

They don't say "cash is king" for nothing - and in residential real estate, nothing could be truer. In a time of unprecedented economic turbulence, the amount of all cash buyers if off the charts. A recent  article posted by DoctorHousingBubble.com  dissects the trends of home buyers and their preferred method of payment. According to the article, Wall Street investors as well as foreign buyers are dominating the market with all-cash purchases. In 2012, all-cash transactions in southern California hit a record high of 35.8% in December, and last month, that number was mimicked by 35.6%, much higher than historical norms. The article also explains that 31% of these buyers are absentee buyers, meaning they are not planning to live in these homes, and dating back to 2000, the monthly average of absentee buyers was nearly half at 17 percent. The graph above provides a visual description of all-cash transactions in specific markets across the country.

Peek inside a Hollywood director's one of a kind Carpinteria compound

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Montecito and its surrounding coastal communities is known for its relaxed and luxurious California lifestyle, so it's no wonder that LA's elite flock to the casual oceanside towns to unwind. A stone's throw from our offices in Montecito, high in the hills of the seaside town of Carpinteria, Hollywood heavyweight Joel Schumacher, known for the Batman films of the 90s, and more recently for directing Gerard Butler and Emmy Rossum in Phantom of the Opera, has collaborated with noted Santa Barbara architect, Don Nulty, to create a truly one of a kind compound. As if plucked from a forest in the snowy Sierras and gently placed in one of California's most desirable beach towns, the property beautifully marries rustic yet refined finishes with breathtaking views of the Pacific ocean. Upon stepping through the grand foyer, ocean views are the centerpiece to the expansive living room with soaring ceilings and furnished to the nines with plush couches and cozy blankets perfect for enjoying the impressive fireplace.  The home features three incredible bedrooms in the main house, a loft designed to take in the surrounding views, a masterpiece of a kitchen, and a spacious guest house just off the key-shaped pool with additional guests quarters. A gem of a hideaway, the entire home begs to entertain, relax, and recharge all who step onto its special property.

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Al Fresco Entertaining

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Montecito is known for its beautiful surroundings and fantastic climate, including incredible ocean views, epic mountain vistas, hidden meadows and rolling hills, which beg to be enjoyed with al fresco dining and entertaining. Here, we highlight some of the most enviable outdoor spaces in the area!

Wine Country Chic

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With Spring having officially sprung, the buds are starting to bloom and abundant greenery surrounds us here in Montecito. The climate is one of the most enviable qualities of this fantastic area, and with weather permitting a variety of wonderful options for leisure, its no surprise that wine-making is a popular one! And it seems SoCal is not the only place seeing a surge in wine-making popularity, people (from places) all over the world are getting in on the action, celebrities to suite-clad professionals are snatching up established vineyards or taking the plunge to start their own. Riskin Associates affiliate, Christie's International Real Estate released an article by Zoe Dare Hall offering insight into the mind of amateur vintners, "For Hollywood stars, vineyards are the latest must-have accessory" writes Hall. And she's right; From Brad and Angelina's in the South of France to Soccer star David Beckham's private-consumption only Napa Valley vineyard, celebrity vineyards are popping up all over the world. A little closer to home, recording artist Stacy "Fergie" Ferguson of the Black Eyed Peas owns Ferguson Crest, a wine venture she owns with her father,  in the Santa Ynez Valley.

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But actors, supermodels and rock stars aren't the only ones starting their own vineyards, Hall also notes that Chinese industrialists consider a fine winery a "trophy asset" and ex-hedge fund managers looking for a lifestyle change flock to the serenity and relaxation strolling through vineyards and sipping on the fruits of one's labor can bring. But if you're interested in more than a leisurely stroll as an investment return, vineyards have potential to produce financial returns as well. Peter Shakeshaft, founder of Vin-X Limited, a fine wine specialist in the UK, tells Hall, "Wine has seen double-digit growth every year for the past 50 years." 

Whether purchasing a turnkey vineyard or starting from scratch, amateurs are not alone, according to Hall 70% of vineyard buyers in France are new to the industry - and if they can do it France, you can do it here too. The Santa Ynez Valley, only 40 minutes outside of Santa Barbara and under 3 hours from Los Angeles, offers a lovely setting to try your hand at producing your own wine. Riskin Associates offers the opportunity to purchase an award-winning vineyard, the 108-acre Vogelzang vineyard is located in the heart of "Santa Barbara wine country" and offers fantastic opportunity to build your dream estate. If you are an epicurean at heart, Santa Barbara and the surrounding coastal communities is a perfect - and chic - location to begin your wine-making adventure!

Santa Barbara's Real Estate Market Continues to Pick Up Steam

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Santa Barbara County's real estate market continues its steady ascent to full recovery. With 2013 in full swing, the market continues to show healthy improvement as sales for January and February exceeded previous years' numbers for those months, reflecting a 24% increase and 27% increase respectively. As shown in the graph to the right, representing the sales for southern Santa Barbara County, sale numbers for the first two months of the year have been turbulent between 2008 and 2011, however an intriguing trend is developing, as 2012's explosive increase is being surpassed by the numbers 2013 has yielded.

As we ease into the spring selling season, the Montecito market has seen a dramatic pick up in buyer interest as well as seller motivation. As Santa Barbara's leading agent team, Riskin Associates had an extremely successful year in 2012 with sales totaling over $220 million, and the team is excited by the prospect of another busy year!

Montecito is Marching Straight into Summer

We aren't officially into the Spring season for almost three more weeks, but in Montecito, it's feeling more like summer. With temperatures breaking 80 degrees, Riskin Associates invites you to imagine yourself cooling off in one of these luxurious pools.

Santa Barbara and Montecito are enjoying beautiful Summer-like weather. Are you?

Montecito Real Estate is Heating Up!

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In the Montecito Journal's Real Estate View, published the week of February 21, author Michael Phillips makes sense out of the Heat Index for Montecito. The article explains that the heat index measures present demand for single-family homes in multiple price sectors and scores are compared to those from a year ago. Astonishingly, today's heat score is 378, which reflects a 302% increase over last year's. While the under $1 million range saw an enormous gain with a score of 250, the luxury markets of $2-3 million and $3-4 million saw encouraging gains with scores of 25 and 26 respectively. Rising prices was also a topic of interest in the article, stating that despite a demand-supply imbalance, resulting in a thin market, prices are rising and buyers are acting quickly on exciting opportunities. December marked the 10th consecutive nationwide monthly home price increase at 9%. However, Montecito real estate price increase far exceeded that number, with home prices rising 25%! As we enter into the Spring and Summer seasons, Riskin Associates hopes to continue to see gains across all price ranges.

A Growing Trend in Green Home Energy

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In his recent article, a custom home builder in Santa Barbara, Doug Ford of DD Ford Construction Inc., highlights the latest trend in home energy solutions, geothermal heating and cooling systems. The technology has gained popularity as homeowners are becoming more aware of their homes' impact on the environment. Geothermal systems use the temperature of the earth 8 ft below ground to regulate the temperature of the air that is distributed through the home's central air system. The temperature of the earth fluctuates far less than the temperature of the outside air, allowing a comfortable temperature to be reached using less fossil fuels than conventional heating and cooling systems. Also, geothermal systems emit no greenhouse gases, which have been linked to global warming. Your inner economist will appreciate another benefit of the new technology, the investment return on geothermal system installation. Geothermal systems have been shown to cut monthly energy usage by half, and as an incentive the Federal Government is offering a 30% tax credit on the cost and installation of geothermal systems through the year 2016.

Cities across California, including Montecito, are doing their best to reduce their carbon footprint. Geothermal energy is a trending way to accomplish this goal while saving homeowners money on their monthly energy bill. Riskin Associates, like DD Ford Construction Inc., wants to know, is geothermal energy in your future?

Does your home insurance cover meteors?

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With a meteor exploding in a Siberian neighborhood just last week, it's a good question to ask: "Does my homeowner's insurance cover falling objects from outer space?" Rest assured, the answer is yes.

Home insurance policies covers falling objects including meteorites, space junk and even blue ice - the frozen sewage that occasionally falls from airplanes. The chances of your Montecito estate actually getting hit by a falling object is incredibly low, as most debris turns in to dust particles by the time it reaches us.

According to an article by CNN Money, an asteroid would have to be the size of  Volkswagen when it enters our atmosphere to do any real damage. The recent event in Russia typically happens only once every 100 years.

"Well Past the Peak of the Foreclosure Crisis"

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The market is picking up and according to a CNNMoney article  foreclosures are coming down. January saw the lowest bank repossessions since 2006 and a 28% decrease from January 2012. California's "Homeowners Bill of Rights" took effect on January 1, 2013 further protecting borrowers from default and resulting in a 62% decrease in new foreclosure filings in California, taking the state out of the lead for new filings. The market is continuing to recover and steady improvement is forecasted through 2013. As Riskin Associates sold over $220 million in luxury real estate in the Montecito area last year, we are looking forward to further market incline!