I have toured about 1/2 dozen homes in Santaluz in the $3M-$4M range. I had first heard about it from an acquaintance who sold his very nice home in Rancho Sata Fe Farms and bought a house in Sataluz back in 2004. Since I generally thought well of this guy, when I decided to shop down there this year, we added Santaluz to my search on our third trip.

Before hand, I had heard about the “dessert” motiff, which turned me off. In person, not so much. For what they are going for there, it is well done IMHO.

Location? Compared to some other areas in RSF I am looking at, it is more conveient for a commute and for shopping. This is relative, of course, to places like the covenant or Cielo, for example. I did like the more open feeling of the area and subtle views.

Now I am not a building expert, but the quality of the homes I toured were quite impressive. My measure is not just quality of build, but design, finishes, style etc. Those homes do tailor to my tastes quite well. So I thought the homes were great, quite honestly. Great floor plans, beautiful houses, very very nice. They were in the 6,000-7,500 sf range with 5-6 bedrooms.

My first knock on the area is that the yards I found way to small for the size of the lot. What I learned is that lots are circular without a frontage. What that apparently means is that you can orient your house any way you want. Some had the entrance in the back and the pool in the front, for example. Most have traditional orientations. Pools were miniversions of what you would expect. Very little lawn. Again, another rule is that you can only have 25% of the “inner pad” whatever that means, as lawn. You can only grow drought resistant plants. For example, the rules only permit 2 types of palm trees. So most of your free land will be “dessert like” and most of it not usable. There will probably be a fence that will mark an area 60% of what you actually own.

Another knock of course is the zip and schools (not the system so much as where your kids are actually going to go, Del Sur?).

My biggest issue is the same as the previous posters, the prices. Overall, I must say, I do like the Santaluz area. I like the homes, the 4 acres per home rules, even the terraine theme. It grew on me. I would be happy living in one of those houses I toured. But no, not at those prices. The average price of the homes I toured was probably $3.5 million or so with an average size of 6,500 sf (rough guesses). At those prices, you can get comprable size homes in RSF, even Fairbanks Ranch. For that you get the RSF zips and schools WITHOUT Mello Roos. That is my problem. Like others here, I am also concerned about the market hurting this area more, since it is still being built out.

Now I tried talking price a little with selling agents (through my agent) and they seem to be a bit arrogant/intransigent about the market. If we note a comp that sold for much less than they are asking, they say that comp is built by another builder and an odd floor plan/orientation yada yada. Of course they pick the high comps. Now this is not an exclusive tactic of Santaluz agents mind you, but my frame of mind is that homes there are more overpriced than anywhere else I am looking.

For me to take real interest in buying there, prices will have to be at least 20% lower. I will keep looking there, because I do like the houses and maybe, just maybe, somebody will list a home at an appropriate price. But I compltely agree, that the large ones I have toured are too expensive, not so much for what you get for the investment (i.e. the home itself) so much as the fact that they are not in RSF, have huge Mello Roos, are likely to depreciate significantly in the next few years, have too many question marks with schools, and have minimal back yards relative to RSF. Compared to my other options, they are too much, period.

But please do note. I am not knocking the area. It may not be for everybody’s taste (neither is Cielo, FBR, or Del Mar for that matter (some people are afraid of oceans. ;)), but for my taste I do like the area. I think I like FBR much more, but Santaluz is a nice community IMHO. I may indeed end up buying a home there if the price is right. But yes, a bit overpriced for this market and I won’t be paying anywhere near the asking prices of the homes I toured.