Macbeth Blog - Santa Ynez Valley Real Estate

Enclosed is the update of activity for December 1, 2012 thru January 31, 2013  There were a total of  55 new listings.  There were 19 pending sales.  Of the residential sales there were 12 sales between $100,000 and $600,000, 4 sales between $601,000 and $999,999, 1 sale over $1,000,000, 1 comm. sale and 1 land sale.  There were 48 sale completes.  Their were 18 price decreases and 1 price increase.  The number of current active listings are down at 226 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 3.625% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 3.75% at no points and Super Jumbo Loans which are loans up to $1,000,000 are at 4.125% at no points for origination. The Jumbo 30/5 year ARM Interest Only is at 3.250% at no points.  The 11th District Cost of Funds index (COFI) is down at 0.962 for the month of March.  The 6 month LIBOR rate is at 0.46; last month it was at 0.47; 12 months ago it was at 0.74.

The real estate market is continuing its recovery with limited inventory in the under $700,000 range and decreasing inventory in the under $1,000,000 range.  I have included an article reprinted from RisMedia which provides outstanding articles to Real Estate Professionals.  This particular article really struck me as an accurate summary of today's market. Of course every article such as this needs to be viewed in the light of our own area. This article deals with the entire country and most of us are concerned with our own corner of the world. So this is my take on the differences.

I think our recovery in 2012 was closer to 20% over the bottom of the market which hit in the 4th quarter 2011.  That was the "rubberband effect" which increased values from 2002 levels to 4th quarter of 2003. Still a long way from the peak of 2005-2006 but it felt SO MUCH BETTER. My analysis of the rubberband effect is that prices dropped so low that anyone interested in becoming a purchaser said, "Yikes, we have to buy now; these prices are too good to be true." and they were.  So "before the bell could ring", prices were headed in an upward direction. The end result of that was most of the affordable inventory under $700,000 disappeared creating even more upward pressure on the lower end prices. However, there is a bright side for buyers in that more lower end properties are coming on the market but guess what....these are normal sales, not distressed. The homeowners waiting in the wings to do something with their properties are putting them on the market because both sales and prices are up.  I even anticipate the pace of  price increases will slow down from the double digit of the past year. We are anticipating a healthy 5-6% annually, especially as the housing inventory increases by the addition of the new homes coming on the Skytt Mesa.  For anyone interested we have a .pdf on designs and floorplans. As they get further into construction, we will let you know the information on prices. If any of you are thinking that one of thoses houses may be for you, please let me know so we can assist you in your purchase. It would be necessary to contact us before visiting the site and leaving your contact information.

Be sure and check out our Website and Property Search engines.  You can still find everything available throughout the County and as far North as Paso Robles at www.MacbethRealEstate.com. Looking for Short Sales, Auctions, REO's we have access to those too through RealtyTrac and Foreclosure Radar. Have a Short Sale, facing foreclosure, call us for information.  At the very least we can provide you with the knowledge to make an informed decision.   Just give us a call and let us know 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 hope your holiday was Merry and filled with family memories and good friends and 2013 is a Happy New Year for us all.  We thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2013  to get your information about the Santa Ynez Valley  and other areas on the beautiful Central Coast from.........

 

David and Marlene Macbeth, CDPE, CIAS, e-PRO, GRI