Kathleen Barnato, CRS

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

Welcome to our biggest tourist week of the year when our town celebrates its Spanish and Mexican heritage with Old Spanish Days Fiesta. For a complete list of events and locations: http://www.oldspanishdays-fiesta.org

th following is a great description from the organization:

Eighty-five years ago Santa Barbara's founding families and business leaders established the tradition that we have come to know as Old Spanish Days Fiesta. During our five-day festival we celebrate the traditions handed down from Spain, Mexico and the California Rancho period. We enjoy the old songs and dances in our Fiesta Pequeña and Noches de Ronda, we taste traditional foods in the Mercados, and we capture memories of the past in our Historical Parade. The riding and roping competitions at the Rodeo evolved from spirited contests at the end of busy days in the 1800s rounding up cattle on the old Ranchos. It is an endearing Santa Barbara tradition that everyone comes together to participate in our community heritage.

Being of Italian descent, El Presidente Anthony Borgatello learned that the Craviotto brothers created the Spanish music bands for the first Fiestas, for years Teresa Di Piazzi taught local performers the original dances of the Californios, and Maria Margelli founded the Old Spanish Days Arts and Crafts Mercado. Our cultural identity is a community heritage uniquely celebrated by all who live here. The theme "A Tribute to Tradition" was inspired by the different ways we love to appreciate this history and to participate in the celebration. It reflects the spirit of the people in our community who work hard, enjoy life, good food, music, song and dance. As a Santa Barbara native Borgatello is honored and privileged to be the Old Spanish Days 2009 El Presidente.

What's going on in the Montecito, California market? Stats show that the sales volume is down almost 60% from this time last year, with the bulk of the sales happening in the $1-2M group, entry level for Montecito. Last year the Median price was $3.6MM, today is is approximately $2.3MM, a decrease of 36%. The sales in the condo market have been almost non-existent, with sales volume down almost 77% from last year, median price falling from $1.6MM to under $900K. This last stat is a hard one to figure, with so few sales, and most in the low end fueled by bankruptcy and distressed sales. Best buys - contact me and I will let you know what I think for each price range. There are some fabulous estate opportunitites right now; cash is king, as they say, or the real ability to qualify for and actually fund a loan! And the schools and large acreages in Montecito are still highly-sought.

Recent sales (2nd quarter 2009) shown on my MLS web site: http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=ot9mvh7s01z&s=9&id=1&cid=1

Detail:

$1MM to $2MM

1930 N. Jameson - $679,000

1550 N. Jameson $975,000

271 E. Mountain - $1,000,000

1345 Santa Clara - $1,075,000

601 Alston Rd. $1,167,250

1850 Eucalyptus Hill Rd - $1,200,000

1012 Fairway - $1,230,000

502 Hodges - $1,250,000

145 Santo Tomas - $1,475,000

1123 Cima Linda - $1,500,000

250 Bonnie Lane - $1,587,400

244 Hot Springs - $1,600,000

970 Lilac - $1,925,000

909 Camino Viejo - $1,960,000

572 Stone Meadow Lane - $1,975,000\

$2MM to $4MM

485 Monarch - $2,250,000

308 Calle Hermosa - $2,325,000

75 La Vuelta - $2,340,000

20 S. Sierra Vista - $2,360,000

823 Summit - $2,550,000

530 McLean - $2,755,000

1950 Boundary - $2,875,000

555 Eastgate - $2,925,000

2117 Forge - $2,950,000

2123 Forge - $3,000,000

549 Hodges - $3,000,000

817 Hot Sptings - $3,600,000

Above $3MM

330 Malaga - $5,550,000

735 Fuera - $7,600,000

1631 Posilipo - $8,300,000

Rockbridge - $25,279,165

For information on any properties in Montecito, or the South Santa Barbara area, please call me!

Montecito/beach area estate properties are alive and well. This morning's caravan features 9 properties that are listed for over $10MM, and 20 properties that are listed between $2MM and $10MM. We have experienced several multiple offers on estate properties in the last month, a signal that those buyers who were uncertain, now perceive our area to have some bargains. Most comment on how much land you get - these are not urban lots with massive structures, but rather impressive estate grounds with the bonus home included.

Today, one terribly interesting property is available: The Austin Val Verde Estate on Sycamore Canyon Road, home to some of the best estates in Montecito. The listing agent writes: "This majestic estate is nestled on 17.4 lush and private acres, complete with a spacious main residence and 2 guest homes. The breathtaking grounds include an impressive reflecting koi pond, year-round creek, pool, fountains, and phenomenal specimen landscaping and beautiful gardens. This is an incredible opportunity to own a rich piece of Montecito's history! Offered at $16,000,000 and subject to bankruptcy court approval. Owner financing may be available."

AUSTIN VAL VERDE: A Montecito Masterpiece is the first book to reveal the full extent and richness of Val Verde's architecture, interiors, and gardens. The book includes never-before-published color photographs of the house and its gardens by the late Berge Aran that capture the enchanting spirit of this American architectural icon and give the reader the rare opportunity of exploring this wonderful place, inside and out.