Santa Barbara Real Estate Through The End of January 2014 for Montecito, Hope Ranch, Santa Barbara, Goleta, Carpinteria and Summerland

by Gary Woods

Through the end of January sales of single family homes is about 23.5% down from 2013 while the median sales price for those homes is up to about $1.25 million from approximately $850,000 last year (a 48% increase).  For condos, sales are down roughly 27% with the median sales price up about 45%.  Of the single family homes that sold for the month roughly 15% of those sales were over the asking price and for condos that number was about 16%.  The average over asking price for homes that sold was about 6% and for condos that number was about 2%.

At the beginning of 2014 sales of both single family homes and condos is down substantially while the median sales price for both segments is up.  For 2014 the real estate market is still dependent on the inventory.  If the listings start increasing then the numbers of sales will rise and the median sales price will moderate.  But, if listings remain stagnant then sales will decrease but the median sales price will continue to go up.

For a Power Point Presentation also by Gary Woods, please click here.

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Santa Barbara Zoning Information Report Update

A Message From the President of the Santa Barbara Association of Realtors
February 12, 2014
credit for photo: Jay Sinclair

Here is an update to our progress so far regarding the issue of Zoning Information Reports (ZIRs).  On behalf of the homeowners of Santa Barbara, the Santa Barbara Assocaition of REALTORS is advocating that the ZIRs should be changed from mandatory to voluntary.  As you are probably aware, serious concerns have been raised regarding the accuracy and reliability of the reports, their cost, their timeliness (or lack thereof) and the enforcement actions that often follow these "Information" reports.  

We have taken the request to make ZIRs voluntary to both the City Council and the Planning Commission.  Based on those meetings, City Leaders have asked that a working group be put together to try to solve the issues that we have brought forward.  The working group consists of 3 Planning Commisisioners, 2 City Staff members, 3 REALTORS and two staff members of the Santa Barbara Association of REALTORS.  At this stage, the talks are only preliminary, but we are hopeful that significant improvements can be made to the ZIR process.  

If not, we will be contacting you once again to ask for your support as we take the issue back to the City Council.  We will provide additional information as we work through this process.  Again, thank for your support and interest in this issue.

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Help Conserve Water, Save Money and Prepare for the New Law

Beginning January 1, 2014, property owners who obtain permits to remodel a property that was built prior to 1994 are required to retrofit with toilets that use no more than 1.6 gallons per flush, showerheads with flow rates of no more than 2.5 gallons per minute and other interior fixtures that use less than 2.2 gallons of water per minute.

This will affect all single family property permits, multi-family and commercial property permits where 10% or more of the square footage is included in the remodel. By January 1, 2017, ALL residential properties in California that were built prior to 1994 will need to be in compliance with water fixtures as outlined above, which will bring them up to the same standards as homes built since 1994.  The good news is that not only do the newer high quality toilets work well, unlike the early "flush twice" low flow toilets, but they are rather stylish and can upgrade the decor of your bathrooms.  The same is true for other plumbing fixtures, providing an opportunity to replace that tired old kitchen faucet.

Although retrofitting of all pre-1994 homes will not be mandated until 2017, making this change now makes a lot of sense - and cents.  You have to do it within 3 years anyway, so by doing it now you will start to save money by reducing your water bill and most importantly, you will use less of our precious water during our current statewide drought emergency.

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Top 5 Overlooked Questions When Buying a Home

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5 Legal Mistakes Home Buyers Make

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Santa Barbara Real Estate Through 2013

This is an analysis of the Santa Barbara Real Estate market including Carpinteria/Summerland, Montecito, Hope Ranch, downtown Santa Barbara and Goleta through the month of December 2013.  For the Home Estate/PUD market the numbers of sales rose from the previous month to 100 in December rising from 81 in November and 91 in October. The Median Sales Price stayed about the same for the month however going to $986,000 in December from $990,000 in November but up from $942,999 in October.  The opened escrows fell in December to 68 from 85 in November and also down from the 79 we saw in October while the median list price on those escrows fell from $1,150,000 in November to $995,000 in December. There were 55 new listings that came on the market in December with a median list price of $1.05 million and an average list price of just about $2.83 million which left the overall inventory falling from about 300 units for sale in November to roughly 215 in December.

                Year over year sales are down slightly from 2012 but the median sales price is up to about $945,000 for approximately a 19% rise. The average sales price is also up going from about $1.35 million in 2012 to approximately $1.43 million in 2013 for a 5% rise while the numbers of escrows are down with about 1,300 in ’12 to roughly 1,230 in ‘13 with the median list price on those escrows up about 15% to approximately $970,000.

Looking at the Districts, Carpinteria/Summerland sales are up from 92 to 109 and the median sales price is up from $729,000 to $852,500. The numbers of escrows are also up from 89 to 106 with the median list price on those escrows rising from $805,000 last year to $861,900 this year. 

             For Montecito, sales are down going from 264 to 228 with the median sales price rising from $1.95 million to $2.4 million. Escrows are also down going from 272 to 235 but the median list price on those escrows is up from $2.186 million to $2.495 million. 

                East of State St sales are down going from 334 in ’12 to 317 in ‘13 but the median sales price is up from $860,000 to $988,500. The escrows went down from 332 to 322 with the median list price on those escrows rising from $895,000 last year to $1,025,000 this year. 

                West of State St sales are down from 281 to 278 but the median sales price is up from $707,500 to $875,000. The numbers of escrows are up with 284 in ’12 compared to 289 in ‘13 and the median list price on those escrows is up from $715,000 last year to $895,000 this year. 

                Hope Ranch sales are up from 30 to 32 and the median sales price is up from $2.115 million to $2.375 million. The numbers of escrows are down with 35 last year compared to 28 this year but the median list price on those escrows is up from $2.3 million in ’12 to $2.495 million in ‘13. 

                Goleta South sales are down with 127 last year and 116 this year but the median sales price is up from $640,000 to $750,500. The numbers of escrows are down from 143 to 101 with the median list price on those escrows rising from $669,000 to $719,000. 

                Goleta North sales are up with 207 in ’12 and 215 in ’13 with the median sales price rising from $620,555 to $792,000. The numbers of escrows are down from 205 to 203 with the median list price on those escrows going from $625,000 to $796,500.

For the Condo segment of the market, sales rose to 35 in December from about 30 in November and October. The median sales price fell however from $530,000 in November to roughly $475,000 in December while the numbers of escrows fell slightly from 34 in November to 33 in December with the median list price on those escrows dropping from $505,550 in November to about $475,000 in December.

There were about 30 new condo listings that came on the market for the month with a median list price of approximately $460,000 falling from $532,500 and an average list price of approximately $455,000 falling from about $532,000 in November while the overall inventory fell in December from about 110 units for sale in November to approximately 90 in December.

Looking at the Districts, Carpinteria/Summerland sales are up from 60 to 83 with the median sales price rising from $365,500 to $445,000. The numbers of escrows are also up from 65 last year to 78 this year and the median list price on those escrows is up from $395,000 to $449,900.

Montecito condo sales are down with 33 in ’12 and 30 in ‘13 but the median sales price is up from $1,100,000 to $1,170,000.The numbers of escrows are down with 33 in ’12 and 29 in ‘13 while the median list price on those escrows is up from $1,195,000 in ’12 to $1,245,000 in ‘13.

East of State St sales are down from 215 to 103 with the median sales price rising from $435,616 to $545,925. The numbers of escrows are also down going from 223 to 104 with the median list price on those escrows up from $447,000 last year to $570,000 this year.

West of State St sales are up from 98 to 112 with the median sales price rising from $402,500 to $542,500. The escrows went up from 94 to 115 with the median list price on those escrows going from $416,300 to $559,000.

  Goleta South sales are up from 63 to 72 with the median sales price up from $305,000 to $445,000. The numbers of escrows are also up with 64 in ’12 and 77 in ‘13 with the median list price on those escrows up from $314,950 last year to $449,250 this year.

Goleta North sales are down from 63 to 56 with the median sales price up from $349,500 to $420,000. The escrows are down however from 70 to 56 with the median list price on those escrows going up from $355,950 to $422,500.

Through the end of December sales of single family homes is basically flat from ’12 while the median sales price for those homes is up about 19%. For condos, sales are down approximately 15% with the median sales price up about 27%. Of the single family homes that sold for the month roughly 25% of those sales were over the asking price and for condos that number was about 11%.  The average over asking price for homes that sold was about 5.2% and for condos that number was about 1.2%. Sales went up in December but escrows fell while the median sales price stayed stable at about $985,000.

At the end of 2012 sales and median sales prices were going up while at the end of 2013 sales are starting to cool and the dramatic increase we’ve seen in the median sales price is starting to moderate. For 2014 the real estate market is dependent on the inventory. If the listings start increasing then the market will continue to rise but if listings remain stagnant then sales will decrease but the median sales price will go up.

Gary Woods

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4 Keys Identified for a Full Housing Recovery

National Association of realtors

DAILY REAL ESTATE NEWS | FRIDAY, JANUARY 17, 2014

In order to have a fully recovered housing market and economic recovery, economists point to the need for four positive indicators: 

1. A healthy job market with low stable unemployment; 

2. Mortgage delinquencies that have returned to historical averages; 

3. Home prices consistent with an affordable mortgage payment–to–income ratio; and 

4. Home sales that are in the range of historical norms. 

So, is the housing market inching closer? 

Freddie Mac’s U.S. Economic and Housing Market Outlook for January takes a look at how the housing market is performing among these four indicators. Economists note that the unemployment rate -- while inching down -- still remains high at 6.7 percent. Meanwhile, mortgage delinquencies have fallen to 5.88 percent -- nearly half of their peak rate but still higher than the national average of about 2 percent, Freddie notes. 

Home prices still have some room to grow without outpacing income growth, economists say. 

“From 1999–2006, mortgage payments on a hypothetical 30-year fixed-rate mortgage would have increased by 50 percent more than income growth,” Freddie Mac notes in the report. “Currently, payment-to-income ratios are only 60 percent of the level we had in 1999, suggesting room for continued housing growth.” 

Finally, home sales have risen over the past two years but remain below levels from a nearly a decade ago. Home sales, historically, average a rate of about 6 percent of the housing stock every year. They dropped to 4 percent during the housing crisis. Economists are predicting a 5.7 percent pace in 2014. 

"As we start 2014, the housing recovery continues its steady pace,” Frank Nothaft, Freddie Mac’s chief economist. “House-price gains will likely moderate from last year's pace but rise about 5 percent in national indexes. Home sales, as well as other key indicators, continue to trend in the right direction, although in some markets we are seeing the sales recovery strengthen while many others remain weak."

Source: Freddie Mac and “Are We There Yet? Freddie Mac Says Recovery Has a Ways to Go,” Mortgage News Daily (Jan. 16, 2014)

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