Macbeth Blog - Santa Ynez Valley Real Estate

Old-Fashioned Service Using Today's Technology
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David and Marlene Macbeth

June 1 - June 31, 2009 Market Update

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.

Published Monday, July 13, 2009 10:02 AM by David & Marlene Macbeth
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