Macbeth Blog - Santa Ynez Valley Real Estate

Enclosed is the update of activity for December, 2011 thru January 2012.  There were a total of  52 new listings.  There were 38 pending sales.  Of the residential sales there were 29 sales between $250,000 and $600,000, 4 sales between $601,000 and $999,999, 1 sale over $1,000,000, 1 commercial sale and 3 land sales.  There were 35 sale completes.  Their were 48 price decreases and no price increases.  The number of current listings are down; however they are still very high at 244  listings specific to the Santa Ynez Valley. 

Rates continue to fluctuate on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 3.75% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 4.0% at no points and Super Jumbo Loans which are loans up to $1,000,000 are at 4.50% at no points for origination. The Jumbo 30/5 year ARM Interest Only is at 3.25% at no points.  The 11th District Cost of Funds index (COFI) is up at 1.221 for the month of February.  The 6 month LIBOR rate is at 0.79; last month it was at 0.80; 12 months ago it was at 0.46.

A few items of note as we end the year and start on 2012.  The indices that determine adjustable rate mortgages are rising ever so slightly and slowly. Is there a reason  for this? None that I can think of except the FED is slowly trying to raise the rates without causing a major panic.  They tell us the economy is getting a little better  which may be true in some parts of the country but I think California is still in for some more pain based on the governor's budget and the automatic cuts that are scheduled. All I continue to hope for is some stability and relative calm.. What's important for you is that you know and project on your adjustable rate loan is where it is going and how long is it going to take to get there. Need some help, we can help you figure it out.

There were a lot of Pending sales these past two months and that is good; the sales are dominated by distressed sales (Contingent Short Sales and Contingent REO) sales; that is both good and not so good. Not so good that the market continues to be dominated by distressed sales (50% of the pending sales in December and 69% of the sales in January). However, it is good that the market is clearing itself of distressed homeowners.  Yes, it is horribly sad that so many people are losing or have lost their homes. But this is also the opportunity for distressed homeowners to get themselves on the road to recovery. The laws are in place both State and Federally for people to recover.The big boost at the State level for right now is Senate Bill 458. It basically waives deficiency judgements for purchase money and non-purchase money loans.  It should also be noted that this law expires at the end of 2012. What it means is that if you are granted a short sale by the bank, they can not come after you for the difference in what is owed and what is paid.  That doesn't absolve you of some of the income tax liabilities but it can be a tremendous relief.  In any case, talking to your realtor and an accountant or lawyer well versed in short sale, foreclosure and bankruptcy  is very important. Marlene  and I are well versed and educated in these issues and if we don't know the answers at the very least we can point you in the right direction.  Being proactive will put you and our economy on the right track.

Be sure and check out our Website and Property Search engines.  We have access to all three Santa Barbara County Multiple Listing Services and you can find everything available throughout the County and as far North as Paso Robles at www.MacbethRealEstate.com .  Looking for Short Sales, Auctions, REO's we have access to those too through RealtyTrac and Foreclosure Radar. Have a Short Sale, facing foreclosure, call us for information.  At the very least we can provide you with the knowledge to make an informed decision.   Just give us a call and let us know what you need. We may be reached during the day at our office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene's is 805-689-2738.  So whether you need to buy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2011 and for the future  to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

David and Marlene Macbeth, CDPE, CIAS, e-PRO, GRI
Your Real Estate Professionals
Providing Old-Fashioned Service Using Today's Technology

Enclosed is the update of 4 months of activity for April 1, 2011 through July 31, 2011. Yes I know this is still late but we are working on October now and will send that with August and September  in a few days.  There were a total of  156  new listings.  There were 53 pending sales.  Of the residential sales there were 37 sales between $250,000 and $600,000, 11 sales between $601,000 and $999,999, 3 sales over $1,000,000, 1 commercial property sale and 1 land sale.  There were 76 sale completes.  Their were 161 price decreases and no price increases.  The number of current listings are down; however they are still very high at 304 listings specific to the Santa Ynez Valley. 

Rates continue to fluctuate on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.5% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 4.875% at no points and Super Jumbo Loans which are loans up to $1,500,000 are at 5.125% at no points for origination. The Jumbo 30/5 year ARM Interest Only is at 3.25% at no points.  The 11th District Cost of Funds index (COFI) is down at 1.350 for the month of September.  The 6 month LIBOR rate is at 0.50; last month it was at 0.45; 12 months ago it was at 0.49.

It's the end of October, fall is definitely here and I have no clue as to where the past 6 months have gone.  Apologies are in order for the inexclusable lateness of our communication.  The only thing I can say is it is not from lack of working because this economy is making everyone work longer and harder., and we fall under that umbrella along with everyone else.  Every sale is an ordeal.  If it is not the applications and long negotiations for short sales and increasing demands of the REO lenders, it is the stringent lending standards which make even the "best" creditworthy employed buyers feel completely unworthy of a  loan.

Now for the real estate market today and its past six months. The first half of 2011 in hindsite seems to have taken a small dip from 2010. Prices seem to have fallen to 2002 levels or lower in some areas but I think it is a combination of short sale and foreclosure prices but also an issue of maintenance and upgrades.  When people are having trouble making their payments there is no extra money to keep properties maintained, upgraded, and "sparkling." Well maintained properties still command the best price and in some cases push the envelope of appraised value.  We have had a number of sales that have sold even when appraised value ends up being below purchase price.  Amazing isn't it ....even in this market. Of course, you have to have a buyer who has a strong downpayment (they are still out there), doesn't want to deal with the hassle of bank owned or short sale (they have tried...been there , done that) but still think the interest rates and the need to find housing make this their time to buy. The value of property is still inherent.  People still need a place to live and the number of new housing units being created is at an all time low. We have an increasing number of households being created but a finite number of place for them to live. At some point, and I think it is soon, we are going to notice the pressure to develop new housing.  Economic theory and reality will come into play and low supply, means increased demand and increased demand will exert an upward pressure on prices.  At the moment it is becoming apparent in the rental market, but soon, with a little help from increasing the number of jobs, the prices of properties will take a turn for the better. I think it will be a slow turn but anything is better than a downward spiral. 

That being said, it really is the time to buy. Be sure and check out our Website and Property Search engines.  We have access to all three Santa Barbara County Multiple Listing Services and you can find everything available throughout the County and as far North as Paso Robles in www.MacbethRealEstate.com .  Looking for Short Sales, Auctions, REO's we have access to those too through RealtyTrac and Foreclosure Radar.  Just give us a call and let us what you need. We may be reached during the day at our office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene's is 805-689-2738.  So whether you need to buy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2011 to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

David and Marlene Macbeth

April 1-30, 2011

May 1-31, 2011

June 1-30, 2011

July 1-31, 2011

"GREAT VIEWS-GREAT VALUE"

•  lot / land - MLS® $199,500 - PRICE REDUCED

Amber Farms, Santa Ynez  -  3185 E Hwy 246, Parcel B Santa Ynez


SANTA YNEZ DEVELOPMENT OPPORTUNITY

Located off Amber Farms Road this 1 acre property with views is level to gently sloping with all utilities available. Water Services is available through Santa Ynez River Water District.

Offered at $350,000

Property information

Enclosed is the update of 2months of activity for December 1, 2010 through January 31, 2011, click here to view the updates..  There were a total of  59  newlistings.  There were 46 pendingsales.  Of the residential sales therewere 35 sales between $199,000 and $600,000, 4 sales between $601,000 and$999,999, 5 sales over $1,000,000 and 2 land sale.  There were 29 sale completes.  Their were 72 price decreases and 1 priceincrease.  The number of current listingsare down slightly; however they are still very high at 296 listings specific tothe Santa Ynez Valley.

Rates continue to fluctuate ona daily basis.  Conforming 30 year fixedrates up to $417,000 are at 4.875% at .375 point and Jumbo Conforming Loanswhich are loans up to $729,750 are at 4.875% at 1 point and Super Jumbo Loansare at 5.125% at 1 points for origination. The conforming 5 /1year ARM InterestOnly is at 3.75% at 1 points, the Jumbo 5/1 year ARM Interest Only is at 3.875%at 1 point.  The 11th District Cost ofFunds index (COFI) is down at 1508 for the month of January.  The 6 month LIBOR rate is at 0.46; last monthit was at 0.46; 12 months ago it was at 0.38.                                  

The chart to the left reflect Yearto Date Sales for the Santa Ynez Valley only.

2010 sales were upapproximately 16.5% from 2009 which is very good. It also reflects that theMedian Sales Price was up about 11.4% from 2009.  An increase in the Median Sales Priceindicates that there were a greater proportion of more expensive homes sold in2010 than in 2009.  Average Sales Pricedroppped about $25,000 or  almost 3%which I think indicates that prices still came down in 2010 but the dropped wasprobably more reflective of lower prices in the upper price ranges. The lowerend  property priced under $600,000  has bottomed out.

Average days on the marketagain is probably affected by the upper end price ranges as those propertieshave taken a longer time to sell.  If ,as a seller, your property is priced in that range or, as a buyer, you arelooking in that range, the market is moving more quickly.  The lower portion of the graphic indicatesthe number of properties sold in distress in comparison to the the totalproperties sold. The number of properties in distress in 2010 and 2010 wereapproximately the same percentage of the market.

Be sure and check out ourWebsite and Property Search engines.  Wehave added Lompoc area properties to the Search through their MLS and you canfind everything available throughout the County.  Looking for Short Sales and REO's. Justindicate that on the bottom field of the form and you will get the mostup-to-date list available. We may be reached during the day at our office805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene'sis 805-689-2738.  So whether you need tobuy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for yourloyalty and support in seeking us out when looking at properties in the Valleyand for choosing in 2010 to get your information about the Santa YnezValley  and other areas on the beautifulCentral Coast from.........

Your Real Estate ProfessionalsProviding
Old-Fashioned Service UsingToday's Technology

David Macbeth and Marlene Macbeth

Enclosed is the update of activity for September 1, 2010 through October 31, 2010, click here to view the updates.  There were a total of  58  new listings.  There were 38 pending sales.  Of the residential sales there were 25 sales between $199,000 and $600,000, 6 sales between $601,000 and $999,999, 6 sales over $1,000,000 and no land sales.  There were 32 sale completes.  Their were 86 price decreases and no price increases.  The number of current listings are down slightly; however they are still very high at 300 listings specific to the Santa Ynez Valley.

Rates continue to fluctuate on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.125% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.25% at .875 point and Super Jumbo Loans are at 4.875% at .5 points for origination. The conforming 5 year ARM Interest Only is at 2.75% at .75 points, the Jumbo 5 year ARM Interest Only is at 4.125% at 1 point.  The 11th District Cost of Funds index (COFI) is down at 1.663 for the month of October.  The 6 month LIBOR rate is at 0.45; last month it was at 0.46; 12 months ago it was at 0.46.

Rates are amazing, aren't they.  At least for the time being but as we all know nothing terrific lasts forever. But when is it going to change.  That's the million dollar question.  The lending landscape has changed quite drastically over the past several years. Practices, approvals and standards that were once widely accepted have either vanished or transformed beyond the point of recognition. Many banks, which were once extremely careless with their loan underwriting techniques and approvals, have dug themselves into a significant hole that will take many years to climb out of. Promotions such as "'100% Financing"and "No Doc Loans"' were both major contributors to the financial crisis banks and consumers are facing today. Today, banks are making sure they don't make the same mistakes again, so loan underwriting standards have become more stringent than ever before.  According to a recent Federal Reserve survey, it was found that about 75% of the banks surveyed indicated they had tightened their lending standards for prime, subprime and commercial mortgages. That was up from about 60% in the previous survey. With this sharp increase in lending standards, borrowers are being turned down for real estate loans at an alarming rate.

Here are the top seven reasons banks are denying home loan requests:

1. Poor credit: The borrower may have a heavy down payment or excellent equity built-up in their house, but if their credit score is under a certain threshold, obtaining a new loan or refinance from a traditional bank is challenging. Even FHA (Federal Housing Administration) loans, which have traditionally catered to borrowers with lower FICO scores, have an average borrower credit score of 693, according to CNN Money, which is above the national average.

2. Insufficient liquidity: If the borrower doesn't have a heavy down payment (20%-30% for most banks) and strong excess liquidity, banks don't want to take the risk on funding their loan.

3. Lack of income: The borrower doesn''t have consistent proof of income for the last two to five years. Regardless of how good their credit score is or how much equity they have in their home, if they can't show the bank proof of income, loan approval will be tough. This can be a big hurdle in the loan process, particularly for retired borrowers.

4. Lying on the application: Banks have learned their lesson and are no longer putting up with borrowers stretching the truth on their applications.

5. Debt: Borrower has excessive debt and their debt-to-income ratio exceeds the bank's guidelines.

6. Unemployment: Most lenders will like to see at least two years of stable work to issue loan approval.

7. Self employment: Lenders are looking at self-employed applicants with a lot more scrutiny these days, making it very tough for these borrowers to get approved.

Obviously some of these newly structured standards are for the betterment of the industry, and our overall economy, but at the same time, home buyers across the country are realizing quickly that reputable credit and stable income aren''92t always enough in qualifying for a loan through a traditional bank.

Be sure and check out our Website and Property Search engines.  We have added Lompoc area properties to the Search through their MLS and you can find everything available throughout the County.  Looking for Short Sales and REO's. Just indicate that on the bottom field of the form and you will get the most up-to-date list available. We may be reached during the day at our office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene's is 805-689-2738.  So whether you need to buy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2010 to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

Enclosed is the update of activity for July 1, 2010 through July 31, 2010, click here to view the updates.  There were a total of  39  new listings.  There were 18 pending sales.  Of the residential sales there were 9 sales between $199,000 and $600,000, 4 sales between $601,000 and $999,999, 4 sales over $1,000,000, 1 commercial property and no land sales.  There were 13 sale completes.  Their were 48 price decreases and no price increases.  The number of current listings are down slightly; however they are still very high at 339 listings specific to the Santa Ynez Valley.

Rates continue to fluctuate on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.25% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points.  The 11th District Cost of Funds index (COFI) is up at 1.797 for the month of August.  The 6 month LIBOR rate is at 0.58; last month it was at 0.71; 12 months ago it was at 0.83

Market activity continues to escalate for the summer and we are pleased with the number of hits to our website and our partner websites. That also means that the number of inquiries and our sales are increasing. Prices continue to remain relatively stable in the under $800,000 range.The balance between new listings and sales continues to increase in the upper end price ranges but the upper end has gained a little momentum.  For example, 41% of the new listings were under $800,000; that means only 59% of the new listings were over $800,000.  61% of pending sales were under $800,000; correspondingly 39% were over $800,000. And finally 53% of the sold final sales for this month were under $800,000 and 47% were over $800,000.  This confirms, I think, that the shadow inventory that the news media is referring to is in specific price points in the  Santa Ynez Valley.  Our lower end market continues to stabilize as our inventory is diminishes but the market for upper end properties was a little stronger this month.

The other item of note is the number of Short Sale properties.  You can really see a trend in the banks trying to work out deals for distressed homeowners.  Our REO market, although steady, has never reached the proportions that were seen in other areas of California or even our own North County.  I think the stats to date were 25 REO's  in the MLS for the first half of both 2009 and 2010 to date.  Our inventory is flooded with Short Sale properties and you can see the number of pendings that are Short Sale Contingent.  Two important points on both the prices of REO and Short Sale properties.  It has become somewhat of a trend to offer  these properties at a "Fire Sale" price.  this is not because it is going to sell at that price but the bank or agent is trying to get the highest and best offer.  We have heard from a reliable source that an excellent property was offered in the MLS at $399,000 but it went Short Sale Contingent with multiple offers at $499,000.  Marlene and I feel its true value was the $499,000 price; that would be consistent with the sold comparables of that property.  However, many unsuspecting buyers trying to do it on their own without a knowledgable Realtor's assistance would never know about the bid-up because it may take 6 months for the bank to process the short sale.  By that time they would have wasted 6 months looking for another "really hot deal" that was never there in the first place, and the market passes them by. So it is time for a little "Buyer Beware."  No one ever rings the bell when the markets starts turning around and moving in the other direction.

Be sure and check out our Website and Property Search engines.  We have added Lompoc area properties to the Search through their MLS and you can find everything available throughout the County.  Looking for Short Sales and REO's. Just indicate that on the bottom field of the form and you will get the most up-to-date list available. We may be reached during the day at our office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene's is 805-689-2738.  So whether you need to buy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2010 to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

Enclosed is the update of activity for May 1, 2010 through May 31, 2010, click here to view the updates.  There were a total of  55  new listings.  There were 5 pending sales.  Of the residential sales there were 2 sales between $199,000 and $600,000, 2 sales between $601,000 and $999,999, 1 sale over $1,000,000.  There were 21 sale completes.  Their were 26 price decreases and 2 price increases.  The number of current listings are down slightly; however they are still very high at 335 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.75% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points.  The 11th District Cost of Funds index (COFI) is down at 1.791 for the month of July.  The 6 month LIBOR rate is at 0.75; last month it was at 0.66; 12 months ago it was at 1.11

Market activity is escalating for the summer. That means that the number of inquiries and sales are increasing. Prices are remaining relatively stable in the under $1,000,000 range but the amount of inventory over  that number is staggering.  Price adjustments for very special properties in the over 1,000,000  range could be viewed as much as 30% and sometimes up to 40%.  A very special property would be described as immaculate with amazing amenities including spectacular views. The good news is that it allows more buyers to enter the market and the Santa Ynez Valley remains a wonderful place to live. We hope you all enjoyed another phenomenal 4th of July celebration and found connecting with your neighbors makes this place all the more special.  After all, who would not to spend just another day in Paradise.

Be sure and check out our Website and Property Search engines.  We have added Lompoc area properties to the Search through their MLS and you can find everything available throughout the County.  Looking for Short Sales and REO's. Just indicate that on the bottom field of the form and you will get the most up-to-date list available. We may be reached during the day at our office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number is 1-800-300-7977.  My cell phone is 805-689-4178 and Marlene's is 805-689-2738.  So whether you need to buy or sell, call us. We would like to show you what we can do!  In the meantime we thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2010 to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from................

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth

Expand Outdoors, Increase Your Home's Value

With many Americans experiencing a financial pinch these days, there is a growing trend among homeowners nationwide to look to the outdoor areas of their own property for not only relaxation and entertainment value, but to also expand their living space and thereby, increase their home’s value.

Through my national network of leading real estate professionals, the Top 5 in Real Estate Network®, I have learned that homeowners across the country are spending more time at home and showing an increased interest in outdoor living areas. By sprucing up your patios, porches and decks, you are making your home more livable now and more attractive to future buyers.

Stylish patios and outdoor rooms with comfortable furnishings and convenient cooking and eating areas provide new opportunities for recreation and relaxing family times. A recent survey by the Propane Education & Research Council, found that 35% of homeowners have a finished outdoor room and 34% say they are planning to design one in the next year or two.

Some of my clients are even foregoing expensive vacations in favor of putting in a swimming pool. The reality is, however, that you do not need to make a major investment to improve your outdoor living areas. Here are five quick additions that will make an immediate difference:

1.  Outdoor lighting units
2.  Gas grills with cooking and food preparation surfaces
3.  Outdoor fire pits or fireplaces
4.  Patio heaters
5.  Mosquito/bug eliminators

In any market, financial planners all agree, real estate is the best investment one can make. Increasing the value of that investment with features that extend and enhance the family living area is always a wise decision. For more information and ideas, feel free to e-mail me…and be sure to pass this on to family and friends who are ready to explore the “great outdoors.”