As you compare last year's sales of Montecito homes priced above $1-million, you will find that the number of transactions are rather
similar. The sale prices are higher and the number of days on the market are generally very much lower, but the actual number of sales
is only slightly higher this year than that of last year. One major difference between last year and this year is the number of sales of
estate homes priced over $4-million. Last year there were a total of five homes sold over $4-million compared to the 13 sales in that
price range so far this year. Last year's five sales equaled our all-time high only previously reached in 1989 and 1994. This shows a
tremendous increase in the number of changes in ownership of some of the most extraordinary estate properties in our community. And
there are going to be more before the year's end! There are another 5 homes now pending that are scheduled to close prior to the end of
this year. This will probably be the largest transfer of estate owners in our history since the creation of many of these properties in
the 1920's.
New Demographics
This dramatic trend of sales of homes over $4-million illustrates a slight shift in Montecito estate ownership. Because of the younger
age of many of these buyers and probably due to our state's personal income tax, many of these new owners will be part-time residents.
Characteristically, the Montecito home may be their second, third, or more home, while this population will tend to remain very active
in their established business and social scene in another part of the country. For the past several years, a significant portion of our
buyers in the luxury market have come from all over the United States and from other countries; as opposed to past years when a vast
majority of our buyers came from Los Angeles. A major factor in this shift to a more global market can be attributed to exceptionally
large securities profits. A noticeable number of our buyers have come from the east coast and were involved in businesses that have
recently gone public. This has broadened the market base of buyers to an international scale, thus lessening the old reliance on the
majority of buyers originating from Los Angeles and the local area.
Updated Marketing
A new marketing strategy is emerging as a result of this expanded geographical market of buyers for our luxury homes. I recently changed
firms from one of the nations largest real estate companies to Sotheby's International Realty. I did so because Sotheby's now has the
same negotiated commission fees as other companies, but they provide considerably more exposure nationally and internationally - where
our new buyers are coming from. It costs my clients no more now to take their properties to the world.
This has been a very rewarding year and I have a lot of people to thank. It has been particularly gratifying to work in a market, for
the first time in a long time, where I see my buying clients and selling clients equally satisfied with the results of their transaction
and not just one side benefiting at the expense of the other. We all have a lot to be thankful for.
CALLOUT
Harry Kolb has been specializing in the marketing of estate properties in our area for the past 20 years. He currently represents 11
estate listings, valued at over $60-million. Before entering the real estate market here in Santa Barbara, Harry was a marketing
consultant with Dun % Bradstreet, Inc., where he designed special campaigns for firms such as Gates Lear Jet, Mobil Oil and Chase
Manhattan Bank. Harry's office is located at Sotheby's International Realty, Montecito (805) 565-8633.
