Macbeth Blog - Santa Ynez Valley Real Estate

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

November 1 - November 30, 2010 Market Update

Enclosed is the update of activity for November 1, 2010 through November 30, 2010, click here to view the updates.  There were a total of  32  new listings.  There were 16 pending sales.  Of the residential sales there were 10 sales between $199,000 and $600,000, 1 sales between $601,000 and $999,999, 4 sales over $1,000,000 and 1 land sale.  There were 15 sale completes.  Their were 30 price decreases and 1 price increase.  The number of current listings remain the same; however they are still very high at 300 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 4.75% 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 5.125% at 1 points for origination. The conforming 5 year ARM Interest Only is at 2.875% at 1 points, the Jumbo 5 year ARM Interest Only is at 4.875% at 1 point.  The 11th District Cost of Funds index (COFI) is down at 1.654 for the month of November.  The 6 month LIBOR rate is at 0.46; last month it was at 0.45; 12 months ago it was at 0.47.

Rates continue to be amazing, even with the edging up. However, the lending landscape has changed quite drastically over the past several years and everyday I learn something new. FHA loans and Mortgage Insurance requirements have changed significantly.  The previous annual premium a borrower paid was up to 2.25% of the loan amount; the monthly premium was .55%.  The monthly premium is now reduced to 1% of the loan amount but .9% of the  loan amount for monthly payments. The annual premium is usually added to the loan amount and is amortized but the monthly premiums are due every month included in the payment and determine a buyer's ability to qualify. On a $500,000 loan that adds $5000 to the loan amount instead of $11,250; that's a good thing. But on a monthly basis for each $100,000 loan amount, the buyer contributes $75.00 for mortgage insurance premium; that makes the monthly mortgage insurance payment $375.00 for a $500,000 loan and a hefty sum for any wallet.

The economic outlook for 2011 is looking better for the South Coast which should mean good things for us in the Santa Ynez Valley.  My prediction and hope is that our real estate values hold a steady course and employment and new job starts will be better in 2011. My hope for us all is that we can recover, albeit slowly and move toward a stronger and healthier self,  a happier and more peaceful world, and a little more personal time for us to reflect and appreciate all that we have. Better stop now before I get too mushy. To all of our friends and clients have a wonderful holiday with your families and a great New Year.

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 Thursday, December 30, 2010 9:23 AM by Marlene Macbeth
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