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While the sales of affordable Santa Ynez Valley properties have been very strong for several months now, the luxury segment, which I define as $1,500,000 and above, has just begun to show signs of life. I was frankly shocked as I looked back at comparable six month sales in 2007 through 2012, to see the ravages of the economy on this important segment of our market.
Who Buys Luxury Santa Ynez Properties? A majority of our luxury properties are purchased as second homes and retirement retreats. Many of these Buyers are based in California, most notably Los Angeles, Santa Barbara/Montecito, Orange County, San Diego and San Francisco. That being said, we see Buyers from the entire country, Canada, Europe and beyond. Most of our luxury Buyers are in their 50′s and 60′s and are looking for the open space, beauty, great weather and relaxed lifestyle of the Santa Ynez Valley.
The Sales of Luxury Santa Ynez Valley Properties Has Fallen Off Dramatically From 2007. While the flow of people looking at our luxury properties has been fairly consistent over the past five or six years, the number of lookers willing to pull the trigger has most definitely fallen off. In the first six months of 2007, there were 23 luxury properties sold, 14 of which were over $2 million. In the first six months of 2011, there were 3 luxury properties sold, and only 1 over $2 million. See chart at bottom of the post.
The Average Discount in Sales Price to Original Listing Price is 32%. The data in the chart below indicates that over the course of the six years, the sale of luxury properties has increasingly favored those that have been available for a long time. In 2007, the average days on the market for the properties that sold was less than 4 months. By 2010, that number jumped to over a year, and stayed at that level until this year, when it jumped to over 2 years. As you can expect, the discount of the average sales price to the original listing price widened hugely over that time, beginning at 12% in 2007 and hitting 32% in 2012.
This Would Looks Like a Great Time to Negotiate the Purchase of a Luxury Property. The sales seem to be picking up, albeit slowly. I feel that we are at a turning point. At this time there are 61 luxury properties for sale in the Santa Ynez Valley, 16 of which have been on the market for over a year. This may be the cherry pile. I have picked a few of my favorites to share with you.
3351 Calle Bonita, Rancho Ynecita $2,870,000. This is an amazing 22 acre property in desirable Rancho Ynecita. It occupies one of the most private parcels I have seen, as the home is accessed off a long road that wraps itself around the hillsides of the property. The views are staggering. The home is architecturally significant, as a Murakami designed Spanish-Modern. The spaces are very open and clean and not competing with the staggering view. This is a BIG house, includes a guest wing, pool and utter privacy. It has been on the market for 2.5 years, and had a $550k+ price reduction in November 2011.
3385 Baseline Avenue, Santa Ynez, $1,595,000. This is a beautiful, elegant 10 acre parcel that is entirely useable and offers Big Views without the hills! There is a lot here, from the lovely gated entry, vineyards, charming and beautifully finished 1200 sq ft home, horse facilities and tennis court. There are plans available for the expansion of the estate. There is ample room to expand the house, or leave it as a second residence and build the primary. This is a great transitional property, for those in the pre-retirement stage. It has been on the market for 1.8 years, beginning at $2.7 million+. The current price went into effect at the end of last month. This is a good deal.
Rancho Agave (Calzada), Santa Ynez $1,795,000. This is a fabulous 2.5 acre property set back off Calzada. The masterpiece is the astonishing contemporary farmhouse, with exquisite finish work, great chef’s kitchen, and killer bathrooms. The property also has a 2 bedroom second residence with its own grounds and sited for privacy. There is a lot here in improvements and great taste. This property has been on the market for 1.5 years, beginning at nearly $2.5 million. It was reduced from $2.1 million to its current price just last week.
Are You Interested in A Luxury Santa Ynez Property? Please contact me for the full list, including 13 others that have been on the market for over a year. Call or text me at 805 588-3616, or email me at [email protected]
That’s all folks
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