Macbeth Blog - Santa Ynez Valley Real Estate

Enclosed is the update of activity for December 1, 2009 through December 31, 2009, click here to view the updates.  There were a total of  23 new listings.  There were12 pending sales.  Of the residential sales there were 6 sales between $200,000 and $600,000, 6 sales between $601,000 and $999,999, no sales over $1,000,000.  There were 16 sale completes.  Their were 27 price decreases and no price increases.  The number of current listings are down slightly; however they are still very high at 291 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  Conforming 30 year fixed rates up to $417,000 are at 4.6% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.7% at 1 point and Super Jumbo Loans are at 5.5% at zero points for origination. The conforming 5 year ARM Interest Only is at 4.2% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.2% at zero points.  The 11th District Cost of Funds index (COFI) is up at 2.094 for the month of January.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. The 6 month LIBOR rate is at 0.43; last month it was at 0.48; 12 months ago it was at 1.77.

There is a significant change noted in the interest rate information above on the Cost of Funds Index (COFI). The COFI is computed from data report by COFI Reporting Members of the Federal Home Loan Bank of San Francisco.  For November 2009 25 eligible institutions reported COFI data.  Effective November 1, 2009 Wachovia Mortgage merged into Wells Fargo Bank which is not eligible to be a COFI Report Member.. The impact of removals of COFI Report Members on the COFI index depends entirely on the amount of interest expense and total funds of the entity being removed.   This  merger changed the COFI, the basis for many negative amortization adjustable rate mortgages from 1.259% in October 2009 to 2.094% in November.  The effect of that is adjustable rate mortgages will change almost imediately about .8%.  So if your adjustable rate mortgage rate was based on the COFI plus a margin of 3.0; your interest rate will change from 4.259% to 5.094% in one month. If you pay rate, the interest rate at whiich your payment is recalculated was set for the 4%+ rate and your interest rate is now in the 5% range, all of a sudden you will be accruing negative interest to your principal balance at a time when most of the other indices are dropping or remaining relatively stable. If you have an adjustable rate mortgage and it is tied to the Cost of Funds Index, you should evaluate your  payment amounts because this is not the time to be adding to your principal balance.  Call or email us for more information or  if you have additional questions. 

Other than the above change the market appears to be stabilizing in the price ranges under 1 million which is a good thing.  There was relatively consistent activity at least for us during the month of December as showing occured and a few of our listings in this same range went into escrow.

Happy New Year and let's hope 2010 is a great year for all of us.  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 in 2009 and for choosing in 2010 to get your information about Santa Ynez Valley real estate 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 October 1, 2009 through October 31, 2009, click here to view the updates.  There were a total of  29 new listings.  There were 19 pending sales.  Of the residential sales there were 13 sales between $200,000 and $600,000, 3 sales between $601,000 and $999,999 and 3 sales between $1,000,000 and $1,999,999 and no land sales.  There were 24 sale completes.  Their were 41 price decreases and 1 price increase.  The number of current listings are down slightly; however they are still very high at 327 listings specific to the Santa Ynez Valley. 

Rates continue to go up and down on a daily basis.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  Conforming 30 year fixed rates up to $417,000 are at 4.8% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 5.0% at 1 point and Super Jumbo Loans are at 5.5% at zero points for origination. The conforming 5 year ARM Interest Only is at 4.2% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.5% at zero points.  The 11th District Cost of Funds index (COFI) is down at 1.272 for the month of November.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. The 6 month LIBOR rate is at 0.54; last month it was at 0.63; 12 months ago it was at 2.55.

Real estate continues to be busy;   29 new listings versus 19 sale pendings  which is not as good as last month but still good considering seasonal adjustments.  Contingency sales are continuing to make for an unusually long escrow but there have been some shorter time frame sales in the mix.  The big news for this month is that the $8,000 tax credit has been extended until April 30,2010. There are new rules to consider which may or may not impact your situation but good to know. The chart is printed on the reverse of this letter for your convenience and a few more details are described below:

Tax Credit Versus Tax Deduction - Its important to remember that the tax credit is just that& a tax credit. The benefit of a tax credit is that its a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.  Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps- The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.  Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price -  Qualifying buyers may purchase a property with a maximum sale price of $800,000.

Guess I am both out of time and out of space - the later of which is to be distinguished from "out in space or  somewhere in left field" or whatever else you label it. It has been a rough month but there is light at the end of the tunnel.  The residential market although not robust continues to improve; the Federal Government continues to see the need to support Housing as a way out of the Economic Slump.  The SY Pirate Football Team handily won its last game and looks like the SY GirlsVolleyball Team  as of today are through the third round of CIF.  Good Luck Pirates- continue to make us proud both on the field and off.  Life is good.

Marlene has been in Wisconsin for a few days visiting with her cousins and saying good-bye to her Aunt, just another part of the cycle of life. Good-bye can be very hard but it will be a time to celebrate a lifetime of great memories. We will all be together for the Thanksgiving Holiday and we hope you and yours  will enjoy time together and be thankful.    .Otherwise, 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 2009 to get your information about Santa Ynez Valley real estate from................

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

Normal 0 0 1 600 3425 28 6 4206 11.1025 0 0 0 Enclosed is the update of activity for August 1, 2009 through August 31, 2009, click here to view the updates. There were a total of  33 new listings.  There were 25 pending sales.  Of the residential sales there were 16 sales between $200,000 and $600,000, 6 sales between $601,000 and $999,999 and no sales between $1,000,000 and $1,999,999 and 3 land sale.  There were 13 sale completes.  Their were 40 price decreases and no price increases.  The number of current listings are down slightly; however they are still very high at 349 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  Conforming 30 year fixed rates up to $417,000 are at 4.8% at zero points and Jumbo Conforming Loans which are loans up to $729,750 are at 5.1% at zero points and Super Jumbo Loans are at 5.6% at zero points for origination. The conforming 5 year ARM Interest Only is at 4.1% at zero points, the Jumbo 5 year ARM Interest Only is at 5.1% at zero points.  The 11th District Cost of Funds index (COFI) is down at 1.473 for the month of August.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. The 6 month LIBOR rate is at 0.76; last month it was at 0.91; 12 months ago it was at 3.12.

August has been a busy month filled with long negotiations but culminating in quite a few pending sales.  Buyers are being very careful in their assessment of values which can put Sellers at a disadvantage. However, I think everyone is coming to grips with the reality of the "New" market and finding that it is what it is; sometimes "moving on" is much better than "hanging on" and what you have to lose in the "peanuts", you can make up in the "popcorn."

Short sales are still taking anywhere from 3-6 moths to accomplish so it still appears that lenders are still inundated with loans that are not paying off at full value. However, for those of you in the short sale position and bemoaning the loss in your credit standing, there is light at the end of the tunnel.  One of our clients sold their home at a value that did not pay off the lender in full.  Their story is different in that they did whatever they needed to do to make their payment up until the close of escrow. True, they did not leave their home with any dollars in their pocket and the lender did not get full value on their money  but 5 months post sale, their credit scores are still over 740. This will  enable them to buy a home, probably more quickly than any of us anticipated and recover from this economic crisis.

Fall is upon us and we are at home tonight listening to an exciting Pirate Football game on Krazy Kountry 105.9 over an awesome new sound system courtesy of the Football Boosters and their sponsors. What a difference from years past.  We are getting ready to go out of town or Marlene and I would both be at the game--we are such sports junkies. There is nothing like Friday Night Football in Santa Ynez but then we  like all the sports because it is not the WIN that's important for kids but the TRY.  We are going to miss Danish Days this year but I hope you all get to have some of those great aebelskivers at Saturday or Sunday breakfast on the streets of Solvang.  Next year Solvang will be celebrating her Centennial Celebration and we wouldn't miss it.

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 2009 to get your information about Santa Ynez Valley real estate 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 June 1, 2009 through June 30, 2009, click here to view the updates.  There were a total of  41 new listings.  There were 36 pending sales.  Of the residential sales there were 26 sales between $200,000 and $600,000, 4 sales between $601,000 and $999,999 and 4 sales between $1,000,000 and $1,999,999, 1 sale between $14,000,000 and $14,999,999 and 1 commercial property sale.  There were 21 sale completes.  Their were 53 price decreases and 2 price increase.  The number of current listings are down slightly; however they are still very high at 361 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  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 4.875% at 1 point and Super Jumbo Loans are at 5.50% at 1 point for origination. The conforming 5 year ARM Interest Only is at 3.875% at 1 point, the Jumbo 5 year ARM Interest Only is at 4.625% at 1 point.  The 11th District Cost of Funds index (COFI) is up at 1.832 for the month of June.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. The 6 month LIBOR rate is at 1.11; last month it was at 1.23; 12 months ago it was at 3.10.

Stats...Stats amd more Stats. Will I never get tired of looking at the numbers from every concievable angle. Nope, I guess not and this is my forum for entertaining or boring you all to tears. The MLS has chosed to break down our categories  for Pending into Contingent, Contingent Short Sale, and Straight Sale Pending. It provides us with a better idea of the type of sale we are looking at and if a price looks particularly low or high we have an idea if it was a property in distress or just a seller wanting or needing to sell. Last time I gave you my "2 Cents" analysis of the lower price ranges but today it the struggling price range $800,000-1,000,000.  There is good and not so good on the horizon.  The good news is that there are 4 sales contingent in that price range.  One Skytt Mesa on .49 acres and the rest between 1 acre and 19 acres; it should be noted that everyone of these properties started at a price ranges betwee $1,125,000 and $1,450,000; 3 of them are in Santa Ynez and 1 in Solvang. Two of these are probably short sales. There are no contingent short sales in this price category. In the Pending Properties category there are 2 properties that were listed in the $800,000-900,000 range that are pending at the moment.  One sold in the low 700,000 range and one on an acre that sold in the 800,000's. What does this tell us...and remember this is in general. If you are a $800,000+ house on less than 1/2 acre you need to be in the low 700,000's so you can compete with the new "boys on the block.".  All of the Skytt Mesa properties have already adjusted their prices to put themselves in position for a sale by reductions into the 700,000 range and offering lots of incentives. They are new with all the accompanying stylistic amenties including 10 foot ceilings, wide moldings, 8 foot doors, lots of square footage, in some cases 3 car garages and new..new..new. If you are on an acre, you need to be pretty "spiffy", updated and some added features if you expect a price in the $850,000- 950,000 + range. This is a tought market for buyers as the economy has hit them hard.  They generally have a home to sell and cannot afford to carry two payments to buy what they want while waiting for their home to sell. The good news is that they are out there looking, a few of them are in a position to buy but they are looking for their best deal.

The Santa Ynez Valley Economic Forecast was held at the Hotel Corque last week.  Marlene and I both attended. Attached is a better summary than I provided several weeks ago that covers the Economic Forecast but also some insightful commentary from one of the Hoteliers who indicates hotel occupancy is at about the high 60's range but guests expecting a little more "bang for their buck" in the way of amenities as well as a lot of locals also supporting many of the valley businesses. Marlene and I find between spending more time to pull together each and every sale during a difficult real estate market and our special grandparent moments we are staying in the valley more, enjoying our local activities and restaurants and keeping the "$love$"  local. Oh what a shame..".just another day in Paradise."

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 2009 to get your information about Santa Ynez Valley real estate from................

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth
e-PRO, GRI
Realtors
Prudential California Realty.

Enclosed is the update of activity for April 16, 2009 through April 30, 2009, click here to view the updates.  There were a total of  20 new listings.  There were 10 pending sales.  Of the residential sales there were 6 sales between $200,000 and $600,000, 3 sales between $601,000 and $999,999 and no sales between $1,000,000 and $1,999,999, 1 sale between $2,000,000 and $2,999,999 and no land sales.  There were 6 sale completes.  Their were 21 price decreases and 1 price increase.  The number of current listings are down slightly; however they are still very high at 347 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  Conforming 30 year fixed rates up to $417,000 are at 4.50% at 1 point and Jumbo Conforming Loans which are loans up to $603,250 are at 4.625% at 1 point and Super Jumbo Loans are at 5.625% at 1 point for origination. The Jumbo 5 year ARM Interest Only is at 5.0% at 1 point.  The 11th District Cost of Funds index (COFI) is down at 1.626 for the month of May.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. The 6 month LIBOR rate is at 1.54; last month it was at 1.65; 12 months ago it was at 2.88.

I just did the stats for Properties under $400,000 or less in the Valley including Los Alamos and there are only 12 active and I know of those 12 at least 50% are in negotiation today or entering escrow.  The lower end is stabilizing as Sold comparables show us almost 1 closed escrow per week over the past 6 months and we have not yet hit the typical "prime" marketing season. Stay tuned for the $400,000-600,000 price range and the $600,000-800,000 range.

Summer has hit the Valley. Temperatures have been in the 80's and 90's which if you are like Marlene and I is a good thing.  We love summer in the Valley. Truth be told, we love all seasons here but who wouldn't. We live in a great place.  However, it does not come without a price and at the moment as I drive around the Valley, I think our dollars would be well spent in a weed abatement program that keeps our vegetation to a level that will prevent a disaster as they are experiencing this week in Santa Barbara. Watching the news has been an eye-opener. As residents we need to be vigilant about brush and foliage around our homes and in the vacant parcels that surround us.

The election continues to loom closer so read the ballots and remember to Vote.  Vote Yes on Proposition 1A and 1B. I know money is tight for everyone at this time but lets not make our children pay the price. 

In the meantime our prayers and thoughts go out to our neighbors in Santa Barbara and the Fire and Police Officers who are working around the clock in terrible conditions to keep us all safe.  May this end quickly so that we can all have a Happy Mother's Day.   We may be reached during the day at our new office 805-688-2969, and in the evening at 805-688-2986.  Our toll-free number remains 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 2009 to get your information about Santa Ynez Valley real estate from................

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth
e-PRO, GRI
Realtors
Prudential California Realty.

Enclosed is the update of activity for February 16, 2009 through March 15, 2009, click here to view the updates.  There were a total of  32 new listings.  There were 14 pending sales.  Of the residential sales there were 10 sales between $200,000 and $600,000, 4 sales between $601,000 and $999,999, no sales between $1,000,000 and $1,999,999, and no land sales.  There were 9 sale completes.  Their were 59 price decreases and 1 price increase.  The number of current listings are up 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.  We are checking daily with  lenders and trying to make sure our buyer have their loans locked in and for a long enough period of time if they are dealing with the purchase of a short sale.  Conforming 30 year fixed rates up to $417,000 are at 4.875% at 1 point and Jumbo Conforming Loans which are loans up to $603,250 are at 5.5% at 1 point and Super Jumbo Loans are at 6.75% at 1.25 points for origination. The Conforming 5 year Interest Only is at 4.75% at 1 point.  The 11th District Cost of Funds index (COFI) is down slightly at 2.455 for the month of March.  We are adding the 6 month LIBOR index to our update letter as it is becoming the standard for many Adjustable Rate Mortgages. FYI: LIBOR is the abbreviation for "London Interbank Offered Rate." The 6 month LIBOR rate is at 1.96; last month it was at 1.75; 12 months ago it was at 2.74.

It's almost Spring. I am so excited. Spring always gives me spring fever and besides Spring Vacation and Easter Egg hunts are on the horizon at our house.  That is, after we get over talking about the Leprechaun who visits at night and leaves little gold coins in secret places. By the way...Happy St. Patrick's Day.  Don't you just love the innocence of children and how they look at things.  It was so much easier way back then.

Good News for Spring - listings have been selling---every listing we have under $600,000 except one is in escrow at the moment. 1st time Buyers, young people and investors  have been looking at this time as a great opportunity. We are still a long way from getting out of this situation but there is progress.

The education situation and budget remains scary. I know of so many teachers who will be looking elsewhere for employment.  I am fearful for our children on how this will impact their academic needs.  I know the teacher in our family, our daughter, Amie has a full schedule of classes at SY High School and 150-160 students who will not have the benefit of her expertise or caring attitude   unless a major windfall happens to the High School budget. This kind of situation affects us all as property owners.  One of the reasons our real estate has the value it does is because we have great schools. The number one question from young families moving to the family is "How are the Schools?"  I hope we have the financial  resources and teachers to keep on top of the academic ladder for next year and beyond.  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 2009 to get your information about Santa Ynez Valley real estate from................

Your Real Estate Professionals Providing

Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

Village Collection, Solvang  -  Announcing a price reduction on 232 Valhalla Drive, a 3,197 sq. ft., 3 bath, 3 bdrm single story. Now MLS® $1,425,000 - Great Price.

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