Macbeth Blog - Santa Ynez Valley Real Estate

Old-Fashioned Service Using Today's Technology
Welcome to Macbeth Blog - Santa Ynez Valley Real Estate Sign in | Help

David and Marlene Macbeth

February 1 - March 31, 2011 Market Update

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  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

Published Wednesday, April 13, 2011 3:54 PM by Marlene Macbeth
Filed under:

Comment Notification

Subscribe to this post's comments using RSS



Thomas said:

Perfect market update and pending sales always for current listings always,keep follow the macbethrealestate blog. The wildflowers site for more unusually windless spring features statistically associated features.

May 28, 2018 8:47 AM

Leave a Comment