In real estate, the old adage of “location, location, location” rings true, and nowhere more so than at the water’s edge.
Of all beach properties that have transacted twice in the last 10 years, the average appreciation was 32.5%. Of those 16 beach sales, 15 properties saw dramatic appreciation; only 1 property transacted at a lower price, and at that, only $250k less than the previous sales price.
2019 has already been a great year for seaside properties. YTD, there have been 7 beach sales; 3 in Q1 and 4 in Q2. In fact, the 3 highest sales in Q2 were beach properties on Sand Point, Fernald and Posilipo, respectively.
There are currently 9 active beach listings in the MLS; 5 of them came on the market in Q2, and 1 of which went under contract within 5 days of being on the market. Riskin Partners is proud to represent the seller.
There are 2 oceanfront pocket listings (asking $24M and $8.4M) and 1 upcoming beach listing (asking $13M). Want details on these exclusive offerings?
Want to know more about our listing at 3443 Padaro Lane? Contact Riskin Partners for more information.
red Hot Red Zone?
Not as hot as we’d prefer, but definitely warming up.
Per ReadySBC.org, the Red Zone designates “areas that will be included in an evacuation in a predicted 1/9 Debris Flow causing storm.” The Red Zone appears to represent approximately 25% of homes in Montecito. Many people have speculated that Red Zone properties would languish on the market, have a narrow buyer pool, and transact at reduced prices. While this has been true in some ways, the good news is the Red Zone has shown significantly increased activity and resilience in Q2.
In Q1, 1 Red Zone property sold; that was 3.4% of Q1 sales (1/29).
In Q2, there were 18 Red Zone sales, 28% of total closings (18/64); Riskin Partners was involved in 5 of these sales.
There are 3 pending sales in the Red Zone.
While it might be a stretch to say the Red Zone is red hot, it does seem to be equalizing as buyers continue to recognize opportunity and value in this segment of the market. There are many factors that could explain the increase in Red Zone sales...distance from 1/9 Debris Flow, the installation of the ring nets, an abundantly rainy year. The maps are scheduled to be revised in the fall, and we anticipate additional strength as the evacuation areas are refined.
And what about that rumor that it is impossible to get insurance on Red Zone properties? Not true across the board.
In Q2 all of our Red Zone buyers were able to get primary market insurance on their properties. That said, it’s certainly nuanced and if you’d like more details, please give us a call.
17 Montecito properties are currently pending in the MLS.
There are 2 Hope Ranch properties pending in the MLS.