Enclosed is the update of 2
months of activity for February 1, 2011 through March 31, 2011, click here to view the updates.. There were a total of 84 new
listings. There were 35 pending
sales. Of the residential sales there
were 23 sales between $199,000 and $600,000, 4 sales between $601,000 and
$999,999, 4 sales over $1,000,000, 3 commercial property sales and no land
sales. There were 44 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 284
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 5.0% at no points and Jumbo Conforming Loans
which are loans up to $729,750 are at 5.125% at no points and Super Jumbo Loans
are at 5.375% at .875 points for origination. The jumbo 5/1year ARM fully
amortized is at 3.75% at 1 points, the Jumbo 5/1 year ARM Interest Only is at
4.125% at .875 point. The 11th District
Cost of Funds index (COFI) is down at 1.469 for the month of April. The 6 month LIBOR rate is at 0.46; last month
it was at 0.46; 12 months ago it was at 0.45.
It's April and already I am thinking I have a great case
of Spring Fever. It still unusually
nippy out in the mornings but that doesn't seem to have affected the
wildflowers on Figueroa Mountain or the hills full of mustard. Now all we need
is some warm and windless spring days.
Now for the real estate
market. The very lower end of the market
is continuing to hold; the number of new short sales, foreclosures and
non-distress sales popping up on the market seem to find buyers, especially if
your price range is under $600,000. The
strongest swell of buyers is in the $250,000 to $499,000 range and those
properties move into the pending status quickly. However, there have also been a few big deals - some
not even reported in the MLS.
There are also a few new
wrinkles appearing on the Federal Level - whether they get anywhere with them
still remains to be seen.
"Qualified Residential Mortgage or QRM is a new term coined by
Congress; their intent was to devise a standard that would incorporate the key
features statistically associated with on-time payments of home loans.
Considering the mortgage mess of the past few years, this is probably a good
thing. The law suggested such features
as:
-
Full documentation of borrower income and assets.
-
Rigorous underwriting standards to ensure the borrower has the
capacity to repay the debt.
-
Avoidance of loan structures that increase the probability of
default, such as balloon payments and negative amortization.
-
Mortgage insurance and other credit enhancements.
The result by regulators is a
highly restrictive QRM with a mandatory 20 percent down payment for home
purchases, 30 percent minimum equity for refinancings, and mandatory
debt-to-income ceilings of 28 percent (housing expenses) and 36 percent (total
household monthly debt load). The
implementation of something this restrictive
would surely slow the housing recovery even more. What are they
thinking??? Fortunately, the QRM is
still a proposal open for public comment through June 10.
To end on a somewhat higher
note, it really is the time to buy. The slow down in construction has decreased
the number of available housing units that are vacant or under construction in
most metropolitan areas and we are soon going to find ourselves without
anything to sell; Even in our "small Santa Ynez Valley metropolis"
our investory is down under 290 - hasnt' been there for a long time. Investors are hitting the market in droves in
the North County and purchasing lots of real estate because the cash flow on
rental properties is starting to look very good. Is this a sign of spring or a
sign of the times??? Only time will
tell.
Be sure and check out our
Website and Property Search engines. We
have access to all three Santa Barbara County Multiple Listing Services and you
can find everything available throughout the County and as far North as Paso
Robles in www.MacbethRealEstate.com.
Looking for Short Sales, Auctions, REO's we have access to those too
through RealtyTrac and Foreclosure Radar.
Just give us a call and let us what you need. 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