Macbeth Blog - Santa Ynez Valley Real Estate

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David and Marlene Macbeth

July 1 - July 31, 2010 Market Update

Enclosed is the update of activity for July 1, 2010 through July 31, 2010, click here to view the updates.  There were a total of  39  new listings.  There were 18 pending sales.  Of the residential sales there were 9 sales between $199,000 and $600,000, 4 sales between $601,000 and $999,999, 4 sales over $1,000,000, 1 commercial property and no land sales.  There were 13 sale completes.  Their were 48 price decreases and no price increases.  The number of current listings are down slightly; however they are still very high at 339 listings specific to the Santa Ynez Valley.

Rates continue to fluctuate on a daily basis.  Conforming 30 year fixed rates up to $417,000 are at 4.25% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points.  The 11th District Cost of Funds index (COFI) is up at 1.797 for the month of August.  The 6 month LIBOR rate is at 0.58; last month it was at 0.71; 12 months ago it was at 0.83

Market activity continues to escalate for the summer and we are pleased with the number of hits to our website and our partner websites. That also means that the number of inquiries and our sales are increasing. Prices continue to remain relatively stable in the under $800,000 range.The balance between new listings and sales continues to increase in the upper end price ranges but the upper end has gained a little momentum.  For example, 41% of the new listings were under $800,000; that means only 59% of the new listings were over $800,000.  61% of pending sales were under $800,000; correspondingly 39% were over $800,000. And finally 53% of the sold final sales for this month were under $800,000 and 47% were over $800,000.  This confirms, I think, that the shadow inventory that the news media is referring to is in specific price points in the  Santa Ynez Valley.  Our lower end market continues to stabilize as our inventory is diminishes but the market for upper end properties was a little stronger this month.

The other item of note is the number of Short Sale properties.  You can really see a trend in the banks trying to work out deals for distressed homeowners.  Our REO market, although steady, has never reached the proportions that were seen in other areas of California or even our own North County.  I think the stats to date were 25 REO's  in the MLS for the first half of both 2009 and 2010 to date.  Our inventory is flooded with Short Sale properties and you can see the number of pendings that are Short Sale Contingent.  Two important points on both the prices of REO and Short Sale properties.  It has become somewhat of a trend to offer  these properties at a "Fire Sale" price.  this is not because it is going to sell at that price but the bank or agent is trying to get the highest and best offer.  We have heard from a reliable source that an excellent property was offered in the MLS at $399,000 but it went Short Sale Contingent with multiple offers at $499,000.  Marlene and I feel its true value was the $499,000 price; that would be consistent with the sold comparables of that property.  However, many unsuspecting buyers trying to do it on their own without a knowledgable Realtor's assistance would never know about the bid-up because it may take 6 months for the bank to process the short sale.  By that time they would have wasted 6 months looking for another "really hot deal" that was never there in the first place, and the market passes them by. So it is time for a little "Buyer Beware."  No one ever rings the bell when the markets starts turning around and moving in the other direction.

Be sure and check out our Website and Property Search engines.  We have added Lompoc area properties to the Search through their MLS and you can find everything available throughout the County.  Looking for Short Sales and REO's. Just indicate that on the bottom field of the form and you will get the most up-to-date list available. 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 the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

Published Monday, August 30, 2010 9:04 AM by Marlene Macbeth
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