Kathleen Barnato, CRS

The tide has turned in parts of the South Coast of Santa Barbara County California: In the low end, the market has all the signs of changing from a buyer's market, where there is a lot of inventory and few sales, to a seller's market, where there is limited inventory and an increase in sales activity.

With less than a 1.6 month's supply of homes priced under $900,000 (this is our low end), this is the least inventory available for sale in this price range anywhere in California. The number of homes for sale has more than doubled from 98 in July to 244 in August 2009, as sellers take advantage of the market. Even with more listings, there were 431 closings. Homes are being absorbed faster than they enter the market.

And I will mention low interest rates, again. They are at an all-time low - zero point conforming loans, with interest rates that are below 5% (LTV under $417,000). I t's time to go shopping, especially if you are a first time buyer trying to get that possible $8,000 home buyer tax credit. http://www.federalhousingtaxcredit.com/2009/home.html. It's time to consider refinancing, if you wish to lower your monthly payments.

For professional and confidential real estate assistance, please contact me - I'm here to help. Kathleen Barnato www.kathleenbarnato.com k@kathleenbarnato.com cell/text 805-570-3366 Prudential CA Realty, Serving the South Santa Barbara County area - Santa Barbara, Hope Ranch, Montecito, Goleta

Real estate is local but public perception seems to always be less than so. Perception becomes reality with enough news coverage in one direction or another. In my market, less than 4% of our inventory is REO business and this is almost exclusively in our low end of inventory. The mortgage news affects, however, a big part of our business, no matter what, even for those who are buying $2M plus properties, with only the first $1M of mortgage interest being tax deductible. Our sales are increasing, our REO inventory has multiple offers (my last one had 20 offers!) and those buyers who have been fence sitting for a while area realizing that while this may not be the "bottom of the market" for real estate value, it most likely is for interest rates! This is the story we have to continue to tell - buy in a market that you "know" - today's market you know the value of the property, and you know your interest rate as well. Mortgage rate timing is the most critical aspect of any transaction.

While reviewing the Forbes.com web site, I found an interesting article about Santa Barbara.

Best Cities For A Housing Recovery Matthew Woolsey, 08.13.09, 04:00 PM EDT ]

Increased transactions and relatively low foreclosure resales spell good news for these markets. "...key measures indicate that some metros are more on their way to recovery than others...where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest." Santa Barbara ranked in the top 10 for being one of the Best Cities for a Housing Recovery, coming in at number 9.

http://www.forbes.com/2009/08/13/recovery-cities-homes-lifestyle-real-estate-housing-recovery-cities.html

If you are waiting for the bottom of the market, our local stats show that might have been in February, around the same time the stock market appears to have bottomed out. Prices have been relatively flat since early March, and sales are brisk on entry level inventory. Even our high end has rebounded, as I wrote in my recent activerain.com/kbarnato blog: "Since January 2009, for properties priced $5MM and up, there have been 17 sales in south Santa Barbara county with 6 pending sales reported as of this writing. " (August 19).

Interest rates are still very good, with money available to those that qualify with the new loan parameters (which seem to change daily). Cash is king, and terrific values are definitely available. The first time home buyer tax credit of $8000 expires at the end of November. (http://www.federalhousingtaxcredit.com/2009/faq.php). If you need a contact person to discuss loans or the tax credit, let me know; I have several sources.

As always, I am available to you by email, cell or text, and appreciate your referrals for any real estate need. My listings, all open this weekend, various times and hosts:

737 E. Alamar $719,000, 2 bed, 1.5 bath in the San Roque neighborhood MLS 09-1137 http://www.imagemaker360.com/94752

1607 Payeras $895,000, 4 bed, 2 bath on the Mesa MLS 09-2882 www.1607payeras.com

3035 Hermosa Road, $1,580,000, Green built, wholehouse remodel, 4 beds, 3 baths, Samarkand neighborhood MLS 09-2831 www.30335hermosa.com

My market is in Santa Barbara/Hope Ranch/Montecito, located in South Santa Barbara County. For years, we have competed with the La Jolla/San Diego market and Beverly Hills as the most exclusive and highest priced real estate in California, not to mention the rest of the United States. Considered an easy commute to Los Angeles, only 100 miles away, we were discovered by the entertainment industry crowd a decade ago. The second and third home buyers fueled our market for 12 years, from 1996 to 2008. Only recently, have the high end sales slowed down. Many perceive this to be an adjustment by the CEO's and COO's of publicly traded companies not wishing to call attention to any public perception of spending the profits, when there weren't really any. The market meltdown in 2008 also tempered down payment monies and there was a bit of a pull back even after the mortgage market meltdown of 2007.

Now, our luxury market is making a real comeback.

We feel that statistics show that February 2009 was most likely the bottom of our real estate market, in all price ranges, and that pricing has stabilized. Certainly, inventory is lower now than the last few months by comparison. Since January 2009, for properties priced $5MM and up, there have been 17 sales in south Santa Barbara county with 6 pending sales reported as of this writing:

Sales:

0 Rockbridge Road - listed for $32,500,000, sold privately for $25,279,265 (Montecito)

815 Cima del Mundo, listed for $25,000,000, sold for $18,500,000 (Montecito)

3284 Beach Club listed at $6,850,000, sold for $6,100,000 (beach)

3447/3445 Padaro listed at $8,150,000, sold for $6,350,000 (beach)

168 Rincon listed at $6,500,000, sold for $5,500,000 (beach)

777 Ayala Lane listed at $7,900,000, sold for $5,975,000 (Montecito)

735 Fuera Lane listed at $8,200,000, sold for $7,600,000 (Montecito)

427 Lanai Road listed for $5,495,000, sold for $4,700,000 (Montecito

1525 Las Tunas, listed for $7,500,000, sold for $7,150,000 (Montecito)

330 Malaga, listed for $5,875,000, sold for $5,550,000 (Montecito)

798 Park Hill Lane, listed for $9,700,000, sold for $8,200,000 (Montecito)

1631 Posilipo, listed for $8,950,000, sold for $8,300,000 (beach)

1039 Cima Linda, listed for $5,200,000, sold for $4,850,000 (Montecito)

4050 Cuervo, listed for $5,600,000, sold for $4,737,500 (Hope Ranch)

616 Juan Crespi Lane, listed for $6,988,600 sold for $6,988,660 (Montecito)

566 Picacho, listed for $5,950,000, sold for $5,450,000 (Montecito)

4280 Via Esperanza, listed for $9,950,000, sold for $8,200,000 (Hope Ranch)

Pending sales - in escrow - waiting to close:

4763 Sandyland $5,900,000 (beach)

1144 E. Mountain $12,500,000 (Montecito)

2549 Sycamore Canyon $16,000,000 (Montecito - Val Verde Estate)

2190 Alston $9,490,000 (Montecito)

4385 Marina $15,750,000 (Hope Ranch)

1340 E. Mountain $6,950,000 (Montecito)

How many active listings are there still out there, priced over $5MM? Plenty to choose from:

Montecito/Beach - over 80 listings priced up to $29MM

Hope Ranch - 8 listings price up to $9,300,000

How many other properties are for sale, privately? Call me or search on my web site: www.kathleenbarnato.com

I just had a client contact me today who has looked at our beautiful properties here - as well as in other spots in Southwestern US. Our median price in Montecito and Hope Ranch, our two exclusive communities, is well over $2.3MM; in the City of Santa Barbara proper it is around $900K, after reaching a high of $1.3 in 2006. He asked me why I thought he should buy here when he can get so much more for so much less $ in some other exclusive communities...here is my answer.

SB is a major destination for both travelers and 2nd, 3rd home buyers. The weather is temperate and beautiful year round. I cannot imagine a nicer place to live for about 9 months of the year. I personally don't like fog, but most people who live in areas where it is HOT love it. Because we have such an international audience, our little town has everything - and this is quite a change from when I moved here in 1974. Then, it was known as the home of the newly wed and nearly dead. The only place to get maternity clothes was Sears, and there was only one toy store. There were few restaurants or venues that stayed open past 9 p.m.

NOW - you have UCSB Arts and Lectures, sports at UCSB/Westmont/SBCC, professional baseball and basketball teams, opera, civic light opera, Chamber Orchestra, Symphony, dozens of movie theaters, many playhouses, more restaurants per capita than anywhere else on the west coast. Did I mention the great weather? Sandy beaches up and down the coast, never crowded. Hiking trails, dog-free zones all over town (both off and on leash).

You can join the Santa Barbara Newcomers and you will meet many new friends there, as well as get a terrific overview of things to do in town. I promise you will never be bored. The airport is small, convvenient and very user friendly. Our prices are higher than some, but our appreciation has also been better than most. (Over 350% in some areas from 1996 to 2006). We are sandwiched between the Los Padres Natl Forest and the Pacific Ocean, with no more room to grow. What is here, is what will be here with very little new development.

Did I mention the weather? A temperate 73 average temp, and very little rain.

www.sbco.org - Santa Barbara Chamber Orchestra

www.artsandlectures.sa.ucsb.edu

www.santabarbaraca.gov/Visitor

www.thesymphony.org