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From CASA CLASSIC HOMES - July 30, 1999
Estates Selling at Record Pace
Estates in Montecito have been selling at a record pace during recent
months. These sales and the trends associated with them were chronicled
last Thursday at the midyear REALTOR Statistical and Economic Review of
South Santa Barbara County. As follow-up commentary on this meeting,
CASA Classic Homes has asked internationally recognized REALTOR Harry
Kolb, of Sotheby's International Real Estate to provide an analysis of
the sales of Estates on the South Coast.
Days on the Market
The new "Captains of Industry" are buying the finer homes of the Santa Barbara area. They are reaching from across the country to buy
second homes priced above $1 million. These sales continue to set records for selling quickly and for higher values. There were 19 homes
sold in our area for over $1 million in less than 30 days, during the past six-months. There were 86 homes sold during the first half of
this year compared to 82 sold in the first six-months of last year. Not only is the number of sales slightly greater, but the average
number of days on the market dropped considerably.
This type of activity is comparable to the 1920's when many of the estates were constructed and purchased. Now these properties are
revered for their architectural beauty, location by the sea, and within the temperate climate of Southern California. So much are they
desired that the median sales price of finer homes in Montecito climbed over the million dollar mark this year. This dramatic rise
resulted in an estimated 23.3 percent increase over the same period last year. One of the most significant changes in our current market
is the inventory which has been on the market for a considerable length of time. This inventory of homes has been dramatically depleted,
bringing down the statistic of "average days on the market".
Current Sales of Larger Estates
The most expensive properties to change hands during the first half of this year, although impressive, failed to exceed established
price records in their respective communities. The most expensive Hope Ranch sale this period was the bluff-top property called
Franciscan Farms. It was priced at $20 million when it sold last month. The most expensive Montecito sale during the first half of this
year was the famous Piranhurst Teahouse, located on 357 vacant acres near 700 East Mountain Drive. The property was priced at $10.5
million when it sold and included 47 buildable acres stretching between East Mountain and the teahouse, plus another 3 10 acres of
wilderness above the teahouse. An interesting footnote to these two major sales is that they were purchased by the same buyer who, at
the same time, also purchased a 1,200 acre piece of development land in San Roque. One buyer in one month purchased each of the most
expensive properties sold in the past six-months in three of our communities. That should help underscore the optimism being expressed
in our strong local economy.
Sales Trends
The average number of days on the market decreased this year compared
to last, and the number of sales this year increased in the higher price
ranges. This area has had more than 12 homes sold over $5 million, compared
to only 7 sold during the first six months of last year; and 24 homes
over $3 million have sold this year compared to just 17 last year. This
market reflects strong consumer confidence in the economy as a whole.
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
Dunn & Bradstreet, Inc., where he designed special campaigns 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
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