SANTA BARBARA AREA INFO



The Santa Barbara area (also known as the South Coast or Southern Santa Barbara County) is generally known to consist of Carpinteria, Summerland, Montecito, Santa Barbara, Hope Ranch and Goleta. Cities to the North of us, from 35 to 75 minutes drive, include Lompoc, Santa Maria, Buellton and Santa Ynez. The nearest cities to the South of us are Oxnard, Ventura and Ojai about 40 miles South and East.  Los Angeles is about 100 miles South, which guarantees our tourism industry. There are about 100,000 people in the City of Santa Barbara, and another 100,000 in the South Coast, so we are a comfortable community of 200,000 nestled between the mountains and the sea.

SANTA BARBARA REAL ESTATE AND ECONOMIC NEWS

Our predicted 10% drop in the median price of a home in Santa Barbara in 2006 did not occur, though the SB South Coast median did drop 4.4%, the first decline since 1995! The median sales price on the Mesa dropped 6.5% last year. After declining 13% in 2005, sales volume in South SB County dropped another 24% in 2006, to reach the lowest sales level in 20 years. Goleta North and South are the only local areas with a median home price below $1Million. The average number of days on the market for '06 was 110. From 1997 to 2005 the median home sales price in the West of State area 20 increased yearly as follows: 11%, 21%, 14%, 20%, 14%, 17%, 13%, 20%, 15%; in 2006 the median dropped -3.6%. In March 2007 there were 15 homes for sale on the Mesa, priced between $699,000 and $6,500,000 (down from 33 mesa homes on the market last June). The outlook for mortgage rates and for home prices are for them to remain steady, in 2007. But as you can see, the ten year run-up in prices appears to be over for now.

Factors that cause a strong demand for real estate here include: employment and tourism is strong, vacancy is still at a low, people are retiring here with $$ from all over the United States, interest rates are low, and Los Angeles/Hollywood money is close by. Factors that continue to restrict Supply include: lack of available land for building, the high cost to develop and build, and the environmental and 'Not In My Back Yard' movements. Even with the recent downturn in the national and state economies, demand for real estate in CA and in Santa Barbara remains strong. The recent Northern California recession in the high tech industry has not affected Santa Barbara prices. The last local recession in the early 1990's did cause a dip in prices of 10-15%, when the localeconomy was more dependent on defense industry contracts. SB's economy is now more broad based and less affected by national and state-wide economic trends. We are a world class tourist resort with fantastic weather year round, and we are still priced below many similar areas of the world. New loan products continue to make it easier for borrowers. These include 100% interest only loans (for the first 3 years), or 95% loans amortized over 40 years with the first 10 years interest-only. If you find a home that works for you and that you can afford, buy it!

For a free summary of the most recent Real Estate and Economic
Forecast give me a call at 805-564-3400 or email kyoung@sbre.com

The crazy Santa Barbara real estate market means that you will need a good Buyer's Agent to succeed, so contact Kevin Young: I have 24 years of local experience helping Buyers in Santa Barbara.

SANTA BARBARA

Long considered one of California's most beautiful communities, Santa Barbara occupies a narrow plain that slopes southward from the rugged Santa Ynez Mountains to palm-fringed Pacific beaches. The weather is truly world class and usually warm throughout the year. There is an abundance of Spanish-Mediterranean architecture with red-tiled roofs and white walls. There is a wide selection of things to see and do in Santa Barbara, such as the Mission, Museum of Art, Lobero Theatre, the Courthouse, Bird Refuge, Zoo, ocean and harbor activities, parks, Cabrillo Blvd. bikepaths, Paseo Nuevo shopping plaza, botanic garden, ocean view hiking trails, etc. Out of towners are often shocked at the high prices in the Santa Barbara area. But remember, you're not just buying a building of wood and stucco, but rather a lifestyle and weather envied the world over. Santa Barbara has unimaginable beauty with its location between the mountains and the sea. Cultural opportunities abound and the people are laid-back.

CONDOS

Condo prices in mid 2006 in Goleta and Carpinteria area START at $387,000 for 1BR's, and $450,000 to $500,000 for 2BR's. In Santa Barbara 2BR condos start at $565,000 to $600,000. Many first time buyers start at the Santa Barbara Highlands, where 2BR 1.5Baths are $650,000 to $700,000. They are 32 years old and feature fees of $364/mo., carports, fireplaces, 2 pools, spa and a central hillside location close to beaches and the city. 3BR condos in the city start around $700,000. There are homes for sale in the city of Santa Barbara priced between $650,000 (for a 1BR) and $8 Million. As the downtown area is older (1920's), most of the entry level (cheaper) homes are 60+ year old 2BR's on small lots with no garage. The few homes priced under 800,000 you probably wouldn't want to live in without a remodel. There are 2 locations for ocean view homes: the Mesa and the Riviera. The Mesa is popular because it is close to the beaches and ranges in price from $1,000,000 to $3,600,000. The Riviera has fancier, newer homes from $1,500,000 and up. Other popular residential locations include San Roque, priced from $900,000 to $2Million, the East-side, with many older large homes priced from about $800,000 and Hidden Valley, with 25 year old 3 and 4BR homes selling for $1,000,000 and up.

The community of Montecito is an outgrowth of a resort area to which wealthy people flocked during the late 1800's, attracted by the mild climate, mineral hot springs and mountain and ocean vistas. The area has many great houses on large estates with lush lawns, shrubs and trees, and is located just just a few freeway exits South of the city of Santa Barbara.

Montecito is one of the most exclusive and expensive areas in the state of California, with homes on the market priced from $1,500,000 for fixer-uppers on small lots to $29 Million. (Two movie stars each paid $40 Million for their homes in the last few years). Montecito prices fell up to 30% in the early 90's but prices have rebounded, so now is the time to buy before Hollywood buys it all up.

Carpinteria is a small city of about 20,000 people, incorporated in 1965, located between the towering (3000 feet) Santa Ynez Mountains and the PacificOcean, about 10 miles South of Santa Barbara. It is known as a beach town, featuring "the world's safest beach". The Carpinteria Valley is known for its mild climate, scenic environment and proximity to Santa Barbara, Ventura and Los Angeles. Captain Gaspar de Portola named the Valley (Carpinteria = Carpentry) in 1769 after seeing all the Tomol canoes being built on the beach by the Chumash Indians.

Some of Carpinteria's highlights include Carpinteria State Beach Park, with campsites and trails along the ocean. Average annual rainfall is 16 inches, falling between September and April. Air quality is exceptional. Only smokeless industry is permitted in the City limits. Floriculture and agriculture account for the largest percentage of workers in the valley. Other major employers included Hall Surgical, Astro Aerospace, Deckers Corp., DAKO Corp., QAD, Inc. and Digital Sound Corp. Downtown includes 2 shopping centers, 5 banks, 9 parks, 15 places of worship, a library, historical museum, one movie theater and a radio station. For more information, call the Carpinteria Chamber of Commerce at (805) 684-5479.

Housing prices in Carpinteria are amongst the lowest in the the Santa Barbara area. Condominiums start at $450,000 for two bedrooms at CasitasVillage (fees $235/mo., pool, shared garage, common laundry room) and go as high as $2,200,000 for a 2BR 2.5Bath ocean front condo. Some other sample condo complexes are as follows: 3BR's at Villa Del Mar start at $650,000, with fees of $300/mo., a townhouse-style 2-story with a one-car garage within walking distance to the beach and recently savedCarpinteria
Bluffs. Houses in Carpinteria range from about $850,000 to $26 Million for 3,125 acres in the foothills. Most of the entry level homes are $800,000 - $1,000,000, ranch style, 30 year old 3BR 2Baths with 2-car garages and 75 X 120 lots, on the mountain side of the freeway. The Carpinteria foothills also have ranches with views and avocados starting around $2 Million.

This community of close to 75,000 people has incorporated itself as a new city (after 4 tries) in February of 2002. It is located off the six freeway exits next to and North (actually West) of Santa Barbara. Goleta has an important agricultural economy but also houses over 80 research and development companies in electronics and space technology.

Many companies were adversely affected in the early 90's due to the downsizing of the defense industry, but they were replaced with new businesses in computer software, medical technology and UCSB spinoffs, so much so that the area is now called "Silicon Beach". Also located here is the municipal airport with daily flights to Los Angeles, San Francisco, San Diego, and Denver, among others.

Most entry level buyers end up in Goleta because you get more house for the money than in Santa Barbara, yet it is only 5 to 10 miles North of the City. Most of the homes are ranch style tract homes, 25 to 30 years old, with 3BR's and 2Baths mostly being in the range of $800,000 to $1,000,000. The 2 areas to consider in Goleta are Goleta South on the ocean side of the freeway, and Goleta North on the mountain side. One of my favorite Goleta neighborhoods is Ellwood Shores, where you can still walk and bike to the beaches North of UCSB through miles of trails and recently saved open space (Ellwood Shores). Condominiums in Goleta start at $400,000 (when you can find them) for 1BR's (and $500,000 for 2BR's) at La Goleta, a complex of several hundred units with pool, central laundry rooms, and fees of $275/mo. 2BR condos start around $550,000 in other complexes, going up to $950,000 for 2-year old 4BR 3Bath Spanish Mediterraneans on small lots .Mobile homes start at $130,000 with fees of $375 to $600/month: this is our new affordable housing! Call for more info or to receive your customized search sent by email.

For more information, answers to specific questions, a free relocation packet including pictures, maps, magazines and a video, or for a free customized list of properties for sale that meet your parameters, e-mail to kyoung@sbre.com