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