When you’re a home buyer willing and able to spend millions of dollars investing in the property of your dreams, there aren’t too many limitations to where you might find that property. Wealthy buyers are more mobile than ever, but according to the 2015 Luxury Market Report from the Coldwell Banker Previews International program, Southern California still remains one of the hottest destinations for luxury home buyers.
“People conduct their business digitally or on the Internet, and my clients are doing it more and more,” says Jan Kabbani, an independent sales associate with Coldwell Banker Residential Brokerage in Phoenix.
Where as previously luxury home buyers had to wait until retirement to finally move where the weather is nice and living is easy, now the Internet is making that dream accessible to wealthy buyers in their 30s and 40s. High-net worth individuals are now flocking to areas that were once considered vacation home or resort areas. Although Southern California may have always been considered more than that, it hasn’t stopped the relocation of many wealthy individuals, both young and old, from moving here.
According to the report, two Southern California communities made the top five list for having the highest number of closed sales of homes in the $1 million and over range: Manhattan Beach and La Jolla. It seems Southern California is also for the ultra-luxury as Beverly Hills, Malibu and Los Angeles were the top areas for luxury home sales over $10 million, while Santa Barbara more than doubled its volume of ultra-luxury home sales.
Santa Barbara Luxury Real Estate Update
With its volume of ultra-luxury home sales more than doubling, it’s no wonder why the market value in Santa Barbara is on its way up. According to Altos Research, a California-based real estate analytics company, the median single-family home value is rising in Santa Barbara coming to $2,107,077. Home values have been on the rise since the first of the year with the seven-day weighted average showing much stronger price growth near $2.49 million.
Prior to the start of 2015, home values had been decreasing but with an increase in demand comes an increase in values. Altos’ unique indicator known as the Market Action Index reports supply and demand levels using 30 as a neutral value. Until just a few weeks ago, the MAI was below neutral meaning that there was more supply than demand thus the weakening home values.
At the start of April, this value shot way up and over neutral coming to a current value of 33.80. This is possibly the result of spring buyers warming up to the market and an increase in demand. Inventory is still on a weaker level in Santa Barbara with about 305 properties on the market, however slight increases are being noted as more home owners are warming to the idea of putting their homes on the market.
If you would like to learn more about available Santa Barbara homes, please give us a call today. We’d love to help you find the perfect luxury home in Southern California.