Welcome to our first blog of 2025!
Before we dive into the real estate I wanted to look back at 2024…
And also share a whistle-stop tour of some trends and themes that have caught my eye and I think will be influencing our real estate market this year.
AI – it’s everything, everywhere! If inflation was the word investors feared in ’23, AI was the word they couldn’t get enough of in ’24. The major beneficiary was, of course, big tech with just 8 stocks (the so called BATMANN stocks) having gained $6.2 trillion in value this year, representing 12% of the S&P 500’s revenue, 26% of its profit, and 34% of its weighting.
Which leads me to the dawn of PREMIUMIZATION and the First Class Economy where everything – especially experiences, are what everyone is chasing and paying for. Across the board, companies and home sellers’ profits are coming from premium pricing on the novel, VIP, and luxury offering, whether it’s in luxury real estate, airline seating, event tickets or theme parks, everyone wants that unforgettable experience and luxury moment and people are paying handsomely for it.
And let’s not forget Crypto – but since I really don’t understand it I am sure to be left on the sidelines!
And then I will wrap this up with the Great Baby Bust.
The global total fertility rate has more than halved since 1970 to just 2.25 children per family in 2023; it’s estimated that by 2050 more than three-quarters of countries won’t be able to sustain their population size. What’s so startling is how universal the reproductive trend is — though it is, in a sense, unsurprising. Improved education and contraceptive access have meant that there’s a growing female workforce. But perhaps most important, many people just don’t seem to want kids anymore, for various reasons.
What Happened in Montecito Last Week?
December 29th – January 4th
4 New Listings
7 Closed Sales
2 Pending Sales
weekly spotlight
January Events in Santa Barbara
January in Santa Barbara and Montecito is the ideal time to enjoy mild weather and diverse activities. Hike scenic trails like Inspiration Point, catch live performances at The Granada Theatre, or unwind with yoga on the beach. Don’t miss the Santa Barbara International Film Festival later this month, or take time to explore local spas and coastal adventures. It’s the perfect way to start the new year on a high note! Click here to view a list of Montecito and Santa Barbara Events.
