As a part of this update of activity for November 1, 2008 through Novenber 30, 2008, click here to view the updates. There were a total of 31 new listings. There were 11 pending sales. Of the residential sales there were 8 sales under $600,000, no sales between $600,001 to $999,999, 3 sales between $1,000,000 to $1,999,999, no sales over $2,000,000 and no land sales. There were 8 sale completes. Their were 39 price decreases and 2 price increases. The number of current listings are down slightly; however they are still very high at 358 listings specific to the Santa Ynez Valley..
Here is the latest and greatest update on loans. Rates continue to go up and down on a daily or even hourly 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 5.25% at 1 point and Jumbo Conforming Loans (from $417,001 to $603,250) are at 5.50% at 1 point. Super Jumbo Loans which are loans in excess of $603,250 are at 6.125% at 1 point for origination. The Jumbo 5 year ARM (interest only) is at 6.5% at 1 point. The 11th District Cost of Funds index (COFI) is up slightly at 3.125 for the month of December. 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 2.57; last month it was at 2.97; 12 months ago it was at 4.91.
The conforming loan limit is now at $603,250 but the rates for this range are terrific. Still changing frequently up and down but you can lock in a great rate on a purchase. As regards the price of properties Marlene and I have been reviewing the statistics and prices and our best guess is that we are currently at the level of Spring 2003 prices which should give you an idea of where you stand in the real estate market. (The peak also our best educated guess was August 2005.) The good news is that the decline in prices is slowing, maybe even stable although not everyone has priced their properties at the 2003 level. The website stats are showing a fair amount of interest from buyers watching the market and we have even had a fair number of showings on our listings. How long will it take to get back to where we were—-we could take a survey and find a zillion different opinions. I have mine based the old “gut instinct”, life in previous recessions, and some history from the “big one” when I was not even a twinkle in my daddy’s eye…its going to be a long slow climb out. The good news will be that we can recover and hopefully learn from the mistakes of this economy and let our memories serve us well. All of those “old-timers” who were around in the 1930’s were a lot thriftier than we are now. Remember the song from Crosby, stills and Nash from the 1980’s…”Teach Your Children Well”, now is the time.
The Holiday Season is upon us and we plan to have a wonderful time with family and friends despite the uncertain economic times. It is at this time that the words “it’s the thought that counts” become ever more significant. So for all of our family, friends and “clients soon to be friends,” you are in our hearts, thoughts and prayers this season and throughout the year. That’s all folks–there will be one more update letter before the end of the year. Talk to you soon. We thank you again for your loyalty and support in seeking us out when looking at properties in the valley and for choosing in 2008 to get your information about Santa Ynez Valley real estate from…………….
Your Real Estate Professionals,
David Macbeth & Marlene Macbeth,
David Macbeth & Marlene Macbeth, GRI
Realtors
Sotheby’s International Realty