$10 + Million Estate Market Leads Sales Activity in Santa Barbara

While the available inventory for sale continues to increase in the condominium market and the homes priced under $2 million, a look at the $10+ million Estate property market tells an entirely different story.

While demand for housing in Santa Barbara is still high in both categories, interest rate hikes have put pressure on those home purchasers of condos and homes priced under $2 million.

The $10+ million Estate property market on the other hand is completely different. We have seen very little new inventory from which these affluent buyers might select from. This limited amount of existing Estate inventory, coupled with a limited supply of Estate land options and the difficult and exhaustive process of getting approvals and then building have been the catalyst for the very impressive sales data in the Estate market.

Nearly half way through 2006, from January through early June, the $10+ million Estate market revenue has already exceeded that of all of 2005! This is not an anomaly.

The $10+ million Estate market has had a meteoric rise since 2003. According to Santa Barbara Association of Realtors Multiple Listing Service data.

For 2006, not quite half way through the year, the data posted a revenue number of $96.9 million - higher than the full year 2005 revenue figure of $96.3 million. 2005 however should not be overshadowed as it delivered a very impressive revenue increase over the 2004 revenue result of $74.7 million, which again was quite an impressive gain over the 2003 revenue figure of $33.6 million.

What does all of this say? The affluent buyers are finding that Santa Barbara 's fantastic quality of life, coupled with its historically limited inventory and low growth philosophy creates an wonderful living environment and perhaps a darn good investment strategy as well.

For more statistical analysis or market data, contact Wendy Elizabeth Gragg, President, Distinctive Real Estate 805.565.0246