Prices continue to rise and there is stiff competition to acquire a home in all areas. To get perspective on the Montecito market, and its 180 sales, up 51 percent year to date for the median price home, we need to look at other neighborhoods on the South Coast. Median prices in Santa Barbara City with 367 sales, are up 38 percent, the Mesa, 56 sales up 63 percent, Hope Ranch, 38 sales up 69 percent, and Goleta, 175 sales up 20 percent.
This market has emphasized the purchasing of the most luxurious and expensive homes, so the statistics are skewed upwards as a result. A new and wealthier buyer is coming to Montecito. They are purchasing the finest homes.
Prior to this year in my memory, I recall several times where that number reached 25 percent for an entire year, but never exceeded 30 percent. After considering every factor the “average” Montecito homeowner has experienced about a 42 percent increase in home value. If you need to determine your value or to explore a home sale, call me.
Short Term Rental (STR) Update for Coastal Zone Locations
Theo Kracke/Paradise Rentals won their lawsuit and appeal to allow STRs. So, STRs are allowed in the Coastal Zone in both the city and the county. Although Theo won the lawsuit, the city did not reimburse his $580,000 attorney costs.
Both the city and the county have requirements before you can get into the STR business. You need a business license and must collect and pay the 12 percent Transient Occupancy Tax (TOT), or the “Bed Tax.” Since renting out a furnished home by the night nets about 30 percent more income than a regular long-term rental, please contact me if you would like to investigate a STR investment in Montecito or the Mesa coastal zone areas.
In June, the City spent another $25,000 hoping to appeal the Kracke/Paradise case to the California Supreme Court. The deadline is August 11 for the Supreme Court to respond whether, or not, they will hear the case.
Radon in Montecito
Radon is an odorless, tasteless radioactive gas that is contained in Rincon Shale formations, present in many local neighborhoods. Radioactivity is hazardous to humans and it travels through the soil and seeps into homes. When doors and windows are closed – think winter – Radon levels increase in affected homes. As the levels increase, occupant’s lungs experience the equivalent of smoking a pack of cigarettes every day. Radon containing soils are widespread across Montecito, the Mesa and large swathes of Santa Barbara and Goleta.
Realtors may not be diligent about checking for Radon. Just this week I met a family who has been living in a Montecito home for 25 years with no idea that the air in their home could be toxic. Google “Santa Barbara Radon” to find where your home falls on the map or call me at 805-451-9300. I will let you know if you live in Rincon Shale and if your location should be tested.