Macbeth Blog - Santa Ynez Valley Real Estate

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

Febraury 1 - February 28, 2010 Market Update

Enclosed is the update of activity for February 1, 2010 through February 28, 2010, click here to view the update.  There were a total of  35  new listings.  There were21 pending sales.  Of the residential sales there were 13 sales between $199,000 and $600,000, 7 sales between $601,000 and $999,999, 1 sale over $1,000,000.  There were 15 sale completes.  Their were 29 price decreases and 1 price increases.  The number of current listings are down slightly; however they are still very high at 317 listings specific to the Santa Ynez Valley. 

Rates continue to go up and down on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.875% at zero points and Jumbo Conforming Loans which are loans up to $729,750 are at 5.0% at zero points and Super Jumbo Loans are at 5.75% at zero points for origination. The conforming 5 year ARM Interest Only is at 4.0% at zero points, the Jumbo 5 year ARM Interest Only is at 5.25% at zero points.  The 11th District Cost of Funds index (COFI) is down at 1.786 for the month of March.  The 6 month LIBOR rate is at 0.39; last month it was at 0.39; 12 months ago it was at 1.81.

Real Estate activity continues to be slow but steady. There have even been some occasional instances of multiple offers which have resulted in overbids. Generally this occurs when the price of the property drops to the "this is a great deal" pricing. The interesting thing is the sales price generally ends up being the price that is fair for all parties. I guess that is classical economics at its best - supply creates its own demand.  There are some great tax benefits available right now for the 1st time buyer and the non-1st time buyer, so for those sitting on the fence - the time is now.  If you are among those still debating whether the tax credit applies to you, here are six things you need to know now in order to take advantage of the opportunity and maximize your benefit.

Timeline - Under the expanded tax credit extension, the date of purchase has been extended to July 1, 2010 as long as a binding agreement was executed (signed) by April 30, 2010.

Qualifying homes - Eligible homes include single-family homes, condos, town houses and co-ops priced at no more than $800,000 which will be used as the buyer's primary residence.

Eligibility - Eligible buyers now come in two categories: First-time buyers who have not owned a home in the past three years and current homeowners who have lived in their homes as a principal residence for five consecutive years out of the last eight years.

Income requirements - The Modified Adjusted Gross Income (MAGI) limit for both first-time buyers and current homeowners is $125,000 for singles or $225,000 for couples. Consult with your accountant or tax preparer if you are unsure of your MAGI.

Maximum credit amount -The maximum credit amount varies: First-time buyers will receive a maximum credit of $8,000 or $4,000 if married but filing separately. For current homeowners, the maximum tax credit is $6,500 or $3,250 if married but filing separately.

Receiving the credit -This is a true credit as opposed to a loan. You will receive the money in the form of a Federal Tax Refund. Repayment will only be required if you sell the home within 36 months of purchase.

Marlene and I have also been acknowledged by Top5inRealEstate as Top Agents. This will allow us to provide extensive real estate information by linking through our website as well as email.  If we do not have your current information on file, please send us an email with that information.  We will also be updating our contact list by phone so you may receive a call from us or our assistant who is helping with this task. 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 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

Published Saturday, April 10, 2010 3:34 PM by David & Marlene Macbeth
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