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