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David and Marlene Macbeth

April 1 - July 31 2011 Market Update

Enclosed is the update of 4 months of activity for April 1, 2011 through July 31, 2011. Yes I know this is still late but we are working on October now and will send that with August and September  in a few days.  There were a total of  156  new listings.  There were 53 pending sales.  Of the residential sales there were 37 sales between $250,000 and $600,000, 11 sales between $601,000 and $999,999, 3 sales over $1,000,000, 1 commercial property sale and 1 land sale.  There were 76 sale completes.  Their were 161 price decreases and no price increases.  The number of current listings are down; however they are still very high at 304 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 4.5% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 4.875% at no points and Super Jumbo Loans which are loans up to $1,500,000 are at 5.125% at no points for origination. The Jumbo 30/5 year ARM Interest Only is at 3.25% at no points.  The 11th District Cost of Funds index (COFI) is down at 1.350 for the month of September.  The 6 month LIBOR rate is at 0.50; last month it was at 0.45; 12 months ago it was at 0.49.

It's the end of October, fall is definitely here and I have no clue as to where the past 6 months have gone.  Apologies are in order for the inexclusable lateness of our communication.  The only thing I can say is it is not from lack of working because this economy is making everyone work longer and harder., and we fall under that umbrella along with everyone else.  Every sale is an ordeal.  If it is not the applications and long negotiations for short sales and increasing demands of the REO lenders, it is the stringent lending standards which make even the "best" creditworthy employed buyers feel completely unworthy of a  loan.

Now for the real estate market today and its past six months. The first half of 2011 in hindsite seems to have taken a small dip from 2010. Prices seem to have fallen to 2002 levels or lower in some areas but I think it is a combination of short sale and foreclosure prices but also an issue of maintenance and upgrades.  When people are having trouble making their payments there is no extra money to keep properties maintained, upgraded, and "sparkling." Well maintained properties still command the best price and in some cases push the envelope of appraised value.  We have had a number of sales that have sold even when appraised value ends up being below purchase price.  Amazing isn't it ....even in this market. Of course, you have to have a buyer who has a strong downpayment (they are still out there), doesn't want to deal with the hassle of bank owned or short sale (they have tried...been there , done that) but still think the interest rates and the need to find housing make this their time to buy. The value of property is still inherent.  People still need a place to live and the number of new housing units being created is at an all time low. We have an increasing number of households being created but a finite number of place for them to live. At some point, and I think it is soon, we are going to notice the pressure to develop new housing.  Economic theory and reality will come into play and low supply, means increased demand and increased demand will exert an upward pressure on prices.  At the moment it is becoming apparent in the rental market, but soon, with a little help from increasing the number of jobs, the prices of properties will take a turn for the better. I think it will be a slow turn but anything is better than a downward spiral. 

That being said, it really is the time to buy. 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 2011 to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

David and Marlene Macbeth

April 1-30, 2011

May 1-31, 2011

June 1-30, 2011

July 1-31, 2011

Published Tuesday, November 01, 2011 8:55 AM by David & Marlene Macbeth
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September 18, 2014 7:27 AM

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