Macbeth Blog - Santa Ynez Valley Real Estate

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David and Marlene Macbeth

August 1 - August 31, 2009 Market Update

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

Published Monday, September 14, 2009 1:01 PM by Marlene Macbeth
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