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Tuesday
Jul112017

2017 FIRST HALF ~ RIVIERA REAL ESTATE REPORT

2017 FIRST HALF  ~  RIVIERA REAL ESTATE REPORT

 I reported 6 months ago in the 2016  Year In Review article that “the Riviera was the best performing sub-market in the entire Santa Barbara south coast”.  After analyzing the numbers from the first 6 months of this year it is apparent that the Riviera market is still very robust.  While the median price of $1,975,000 has not changed from the first half of 2016, the number of sales in each price category is almost identical.  This indicates that the market is continuing on its torrid pace in terms of the number of sales, however the healthy balance between buyers and sellers is alleviating pressure on prices in either direction.

 As of this writing the current inventory also looks promising with 47 active listings, about one third of which are under contract with a median list price of $2,195,000.  If this pace continues the Riviera market could surpass last year’s record setting numbers of 97 sales with a median price of just over $2 million.  In order for this to happen however, it is imperative that the flow of inventory continues and that sellers do not have unrealistic expectations when it comes to pricing their homes.  Another interesting statistic to take note of is the amount of time it takes for properties to go under contract after coming on the market.  The average “days on market” for the listings that sold in the first 6 months was 47 compared to 56 for the overall South Coast market.  A more detailed analysis illustrates that the properties at or below the 47 day mark sold for very close to the list price, whereas those that were on the market for a longer period of time underwent substantial price reductions before they finally sold.  This is an excellent case study for potential sellers to analyze before setting a list price for their property.

 One final note of interest is the trend that I mentioned in last year’s report regarding the resurgence of the home renovation market. The five highest sales so far this year were all either new construction or thoroughly renovated high quality homes ranging in price from $3.4 to $6.6 million.  I personally witnessed the strong demand for this type of property, as one of the developers was my client who built a beautiful contemporary home on the lower Riviera.  Not only did this sale set a precedent for the neighborhood at $3.4 million but it went under contract while it was still under construction and closed escrow the day it was finished. While being a developer in Santa Barbara is not for the faint of heart it can be a rewarding endeavor due to the lack of quality new construction in an established neighborhood like the Riviera.