CONFIDENCE AMONG HIGH-END SELLERS LEADS TO V-SHAPED RECOVERY
According to analysis from the Dow Jones Market Data Team, the residential real estate luxury segment is leading the way in our economic recovery from the COVID-19 shutdown. The analysis shows confidence among luxury home sellers remained resilient during the quarantine when compared to other sectors of the industry. In fact, it shows that inventory of homes priced at $1 million or more rose 1% during March and April of this year.
Dow Jones Market Data Team Analysis
Housing inventory in every other residential real estate segment nationwide plummeted in March and April. In fact, U.S. housing inventory across more than 375 metro areas continued to decline from around the peak of the national outbreak on April 1 through mid-May. Total inventory was down more than 4% in the week ending May 16 compared to April 1.
The report found that during the first quarter of the year, even homeowners hoping to sell yanked their listings from the marketplace because the stay-at-home order made showings difficult at best or, in many cases, impossible. But as regions are gradually opening up, so is the nation’s housing segment with luxury residential real estate leading the way.
What these sellers were not aware of is the fact that the industry as a whole received a large increase in buyer activity across all price segments at the same time we were ordered to stay home. And experts say we are poised for a speedy, V-shaped recovery. For those who are not familiar with what makes a V-shaped recovery, it’s a term used to explain an economic period in which the economy experiences a sharp decline for a short period of time followed by a strong recovery.
Santa Barbara Residential Real Estate Recovery
As explained in a previous blog, Santa Barbara Housing Market: Home Prices in the Shadow of COVID-19, the local market was impacted at first with sales being off by approximately 30-50%. Showings were affected during the first two weeks of the shelter in place order, but they picked up as soon as the local economy began to reopen.
The internet helped during the early days since buyers could easily take a look online before deciding to tour a particular property in person. As a result of all the above, sales are down year-over-year and cancellation rates on escrows are still higher than normal. But, we are seeing a surge in buyer activity since the shelter in place order was lifted and we hope to continue on that growing trend.
What is helping sales here is the fact that more buyers are looking to live in community-based environs like Santa Barbara and Montecito; away from urban living where pollution and lack of privacy and open green spaces are the norm. This trend is being seen across the board, from luxury real estate to less expensive homes in all our local communities.
My New Listings in 2020
Since the beginning of the year, business has been booming for me. Besides selling 6 amazing properties, I have also added 8 new, equally magnificent listings to my portfolio of fine homes. Including these:
Montecito Charmer on a Country Lane. Situated on a very private, tree-lined country road, this ranch style stunner incorporates designer elements, such as travertine, limestone, and marble stones, with tasteful finishes like the rich hardwood floors found throughout. I love the living room’s cathedral ceiling with a wall of glass that capitalizes on the estate’s picturesque setting. The grounds are expansive and spacious offering the new owners endless possibilities.
This Quintessential Mediterranean-style Montecito View Estate features breathtaking, unobstructed ocean and mountain vistas from most rooms. The upstairs guest suite and private deck are especially unique since they were designed by Award-winning architect Don Nulty, AIA. The landscaping is also gorgeous, created by architect Chris Gilliland, and listed among the top 12 finalists of HGTV’s 2019 Gorgeous Gardens competition. The new owners will appreciate an herb and vegetable garden, the raised bed rose garden, and the home’s private orchard with avocado, apple, nectarine, plum, fig, and a dozen citrus trees.
Who says residential real estate has to be boring? The Iconic Modernism by Barton Myers pictured here and at the top of this blog post is sustainably constructed as conceived by visionary designer, Barton Myers, FAIA. It has received many awards, including being named “one of the most beautiful homes in the world” by Architectural Record. The home is nothing short of stunning with its backdrop of the dramatic Santa Ynez Mountains. Even the home’s surrounding gardens are magnificent. Created through the guidance of Mark Rios, FAIA, FASLA, the gardens have been awarded as an “Outstanding American Garden” by the Garden Club of America.
This European-Inspired Montecito Contemporary Estate is the former residence of celebrated comedian Johnathan Winters and his wife. The new owners will have plenty of room to spread out. The 5-bedroom and 7.5 bath stunner sits on approximately 3 acres with breathtaking ocean, island and mountain vistas around every corner.
This French Country-Style Montecito Home in Birnam Wood has joined the other amazing properties in my portfolio of fine homes. Built in 2019, the estate overlooks the community’s cherished world-class golf course, which makes this the perfect choice for golf aficionados. The entire home combines Old World French country elegance with 21st-century conveniences and décor, all expertly created by a team of experts: architect Robert Senn AIA gifted designer Michael Hurst accomplished landscape architect Kris Kimpel, and visionary builder Becker Studios.
I have more exclusive listings coming online soon, so be sure to check my comprehensive website frequently. See something you like? Give me a call at (805) 886-9378 or send me an email at Cristal@Montecito-Estate. I’m here to help with all your residential real estate needs and questions, especially when it comes to the many fine communities in Santa Barbara.