Market Mojo Report – April 2016

Transforming a House For Sale

After retiring from UCSB, my client Eileen Conrad needed to downsize. She wanted to obtain the equity out of her home, improve the quality of her retirement, and move to her condo in Hawaii. So she decided to sell. “It will enable me to no longer have a mortgage, and more, “said Eileen. “It will improve my standard of living, my ability to travel and
enjoy life. I knew who I needed to call.” Read More→

Montecito Connection March – April 2016

Oprah Winfrey paid $28,850,000 for the most expensive home sold in Montecito in the past two months. Known as Seamair Farm, this 23-acre property, in two separate parcels, is located on Santa Rosa Lane. Oprah’s 42-acre home on East Valley Road abuts the property to the north. The listing price for Seamair Farm was $25,000,000 and the property was sold closed-bid style to protect the confi dentiality of all parties. There was enough interest in the property to produce bids over the asking price. Read More→

Is a Recession Imminent in 2016?

by Mark Schniepp • February 29, 2016

This year began with stock indexes retrenching toward bear territory. In the first three weeks of January, the Dow and S&P declined 10 percent from their index levels on December 31, 2015. Is the stock market collapse a precursor of the next recession, coming this year ?
Read More→

Market Mojo Report – March 2016

Building a Home – Part Two

Let’s return to the home building project of my client Ron Abeles at 129 Oliver Road. At my last report the construction was just beginning. Now the structure is mostly up, but Ron ran into regulation changes between the submission of the plans and approval of the working drawings. Even though there was some fi nancial pain, and there were changes in
the path of construction, things turned out well in the end. Read More→

Montecito Connection January – February 2016

2016 Will Be Another Good Year

Homes in California continue to appreciate each year, although the rate of appreciation is slowing down—a sign of a stable market. There was a big increase in home values of 27 percent in 2013, and then a 10 percent increase in 2014. In 2015 the rate went down to a 6.5 percent increase. The California Association of Realtors predicts the rate will rise by 3.2
percent for 2016.

globe-handsThis long-term trend shows strong stability of real estate prices, without an expectation of either sharp rises or sharp drops. There are some exceptions. Silicon Valley and San Francisco, with their run-away creation of new high-tech jobs, had 10-20 percent increases for 2015. After several boom and bust cycles, a stable real estate market can be viewed as a good thing.

Because interest rates are rising for the fi rst time in eight years, more buyers will enter the market as fence-sitters decide that now is the time to buy. Only about 25 percent of our South Coast sales are fi rsttime home buyers, whereas the national average is between 30 and 40 percent. We simply do not have enough lower-priced homes to accomodate all of the fi rst-time buyers. Presidental elections generally cause a slowdown in sales since some
people delay making big decisions until after the election. Nonetheless, I expect plenty of high end sales in Montecito and an infl ux of out-of-town buyers, especially from the Bay Area. While it may not be a banner year, expect steady growth in 2016.

Market Mojo Report Feb 2016

Five Things You Should Know Before You Remodel

valentines-heartDuring this year we are featuring stories about home building projects. If you’d like to remodel your present home here is an architect’s checklist. Of course, every owner’s project is different with varying property characteristics. Yours may require less or more information, but the essential items an owner should know for a successful project are: Read More→

Montecito Year End Wrap-up

In 2015, Montecito came in third place in home sales in Santa Barbara neighborhoods. It had a 5.5 percent increase in median price from $2,725,000 to $2,887,500. The leading neighborhood in Santa Barbara for 2015 was the Mesa—up 11.2 percent. Goleta houses were second, up 7.4 percent.

I attribute the Mesa’s lead to buyers being willing to pay more for near-water properties. Oceanfront and near-ocean properties in Montecito and Carpinteria outpaced other nearby properties as well. Goleta grew because of affordability, but in affordable Carpinteria,
median priced homes declined 1.9 percent in 2015.

Read More→

Market Mojo Report Jan 2016

2016 Will Be Another Good Year

Homes in California continue to appreciate each year, although the rate of appreciation is slowing down—a sign of a stable market. There was a big increase in home values of 27 percent in 2013, and then a 10 percent increase in 2014.

In 2015 the rate went down to a 6.5 percent increase. The California Association of Realtors predicts the rate will rise by 3.2 percent for 2016.

Read More→

Will The First Interest Rate Hike In 9 Years Sink The Housing Market?

by Mark Schniepp • December 28, 2015

On December 16, 2015, the long awaited rise in the federal funds rate by the Federal Reserve Bank was announced. This is the first interest rate hike since 2006.

What impact will this move have on the economy, and especially, the interest rate sensitive housing market?

The rate hike was, as expected, small, (0.25 of a percentage point), and for that matter, relatively meaningless. This “gesture” by the FED doesn’t change much and will have little if any impact on the economy.

Read More→

927 Coyote Road, Montecito, CA 93108

exterior_700

Listing Price: $3,000,000

This gated and fenced Mediterranean gem with Tuscan Style rock work and a separate Casita is now available.  It is in a wonderful setting, with great architecture, and a good view of the Santa Barbara harbor and Channel Islands.  Completed in November 2010, it has been gently used and feels like a newly finished house.  It takes advantage of the site with beautiful drought-tolerant landscaping, stone walls, multiple French doors, four expansive view patios for true indoor/outdoor living.  Built for an owner – not a spec house – so it has a huge list of extras and custom features.  To purchase this fine home, or to market your property, call Scott Williams 805 451-9300. Read More→