David and Marlene Macbeth

December 1, 2011 - January 31, 2012, Local Market Updates

David & Marlene Macbeth — Tue, 14 Feb 2012 17:44:00 GMT

Enclosed is the update of activity for December, 2011 thru January 2012. There were a total of 52 new listings. There were 38 pending sales. Of the residential sales there were 29 sales between $250,000 and $600,000, 4 sales between $601,000 and $999,999, 1 sale over $1,000,000, 1 commercial sale and 3 land sales. There were 35 sale completes. Their were 48 price decreases and no price increases. The number of current listings are down; however they are still very high at 244 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 3.75% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 4.0% at no points and Super Jumbo Loans which are loans up to $1,000,000 are at 4.50% 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 up at 1.221 for the month of February. The 6 month LIBOR rate is at 0.79; last month it was at 0.80; 12 months ago it was at 0.46.

A few items of note as we end the year and start on 2012. The indices that determine adjustable rate mortgages are rising ever so slightly and slowly. Is there a reason for this? None that I can think of except the FED is slowly trying to raise the rates without causing a major panic. They tell us the economy is getting a little better which may be true in some parts of the country but I think California is still in for some more pain based on the governor's budget and the automatic cuts that are scheduled. All I continue to hope for is some stability and relative calm.. What's important for you is that you know and project on your adjustable rate loan is where it is going and how long is it going to take to get there. Need some help, we can help you figure it out.

There were a lot of Pending sales these past two months and that is good; the sales are dominated by distressed sales (Contingent Short Sales and Contingent REO) sales; that is both good and not so good. Not so good that the market continues to be dominated by distressed sales (50% of the pending sales in December and 69% of the sales in January). However, it is good that the market is clearing itself of distressed homeowners. Yes, it is horribly sad that so many people are losing or have lost their homes. But this is also the opportunity for distressed homeowners to get themselves on the road to recovery. The laws are in place both State and Federally for people to recover.The big boost at the State level for right now is Senate Bill 458. It basically waives deficiency judgements for purchase money and non-purchase money loans. It should also be noted that this law expires at the end of 2012. What it means is that if you are granted a short sale by the bank, they can not come after you for the difference in what is owed and what is paid. That doesn't absolve you of some of the income tax liabilities but it can be a tremendous relief. In any case, talking to your realtor and an accountant or lawyer well versed in short sale, foreclosure and bankruptcy is very important. Marlene and I are well versed and educated in these issues and if we don't know the answers at the very least we can point you in the right direction. Being proactive will put you and our economy on the right track.

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 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 thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2011 and for the future 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
Your Real Estate Professionals
Providing Old-Fashioned Service Using Today's Technology

August 1 - November 30, 2011 Market Updates

David & Marlene Macbeth — Thu, 12 Jan 2012 06:39:00 GMT

Enclosed is the update of 4 months of activity for August 1, 2011 through November 30, 2011. . There were a total of 109 new listings. There were 24 pending sales. Of the residential sales there were 20 sales between $250,000 and $600,000, 1 sales between $601,000 and $999,999, 3 sales over $1,000,000, and no land sale. There were 78 sale completes. Their were 91 price decreases and no price increases. The number of current listings are down; however they are still very high at 268 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 3.875% at no points and Jumbo Conforming Loans which are loans up to $626,500 are at 4.125% at no points and Super Jumbo Loans which are loans up to $1,000,000 are at 4.625% at no points for origination. The Jumbo 30/5 year ARM Interest Only is at 3.625% at no points. The 11th District Cost of Funds index (COFI) is down at 1.218 for the month of December. The 6 month LIBOR rate is at 0.80; last month it was at 0.71; 12 months ago it was at 0.48.

I am going to do the End of the Year Update with this letter since we are still struggling to get this Update back on schedule. We have worked harder mostly due to the Short Sale Market which requires not only knowledge and professionalism but boundless energy, perseverance beyond question and unbelievable tenacity. I guess we are just hard headed and stubborn enough not to let the banks win and eventually we run into someone at the bank who does understand reality and we close the deal. It just takes an incredible amount of time. Marlene and I are thankful everyday for each other as it takes two to get it all done. The results of the year are a mixed bag. There are buyer's out their with loads of confidence in the market, many of them investors or buyers looking for 2nd homes. They think the prices are great; interest rates are phenomenal and we are close to if not at the bottom of the under the $800,000 range of homes. I would say in the under $400,000 range, homes are flying off the shelf with multiple offers. That does not mean they are selling at astronomical prices but market forces are preventing them from slipping further, at least for the 4th quarter of 2011. There was still about .5% erosion per month in values for at least the first 3 quarters of 2011 but I think stability in the 4th quarter. That is an improvement over 2010 where we saw declines from .75% to 1% per month. So I have high hopes for 2012. If you have not received an accurate analysis of where your house is valued in the 4th quarter of 2011 - now is the time to do that because...."God willing and the Creek doesn't rise" that will determine your property value in 2012 and the base for future years and maybe even some increase over the long term.. The hard reality is that number is somewhere between 40-60% off the peak value in 2005 and has driven us back to the property values of 2001. And there is no area of value that is untouched by this. It does not matter if your property was valued under 1 million or over 10+ million. We have all taken the hit. The reason for the variation from 40-60% is determine by the level of maintenance your house has received. If you are in pristine condition - you are down 40%; if you have deferred maintenance and your property is not staged for showing, you are down 60%.

That being said, it may be your time to do something or ask the question. 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 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 rpovide 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 thank you again for your loyalty and support in seeking us out when looking at properties in the Valley and for choosing in 2011 and for the future to get your information about the Santa Ynez Valley and other areas on the beautiful Central Coast from.........

Your Real Estate Professionals

David and Marlene Macbeth

April 1 - July 31 2011 Market Update

David & Marlene Macbeth — Tue, 01 Nov 2011 16:55:00 GMT

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

Single Story For Sale in Santa Ynez

David & Marlene Macbeth — Mon, 31 Oct 2011 16:04:00 GMT

VIEWS, VIEWS & MORE!!!

• 1,980 sq. ft., 2 bath, 3 bdrm single story - MLS® $799,000 - NEW PRICE

Santa Ynez, Santa Barbara County - VIEWS, VIEWS & MORE

Outstanding views of the surrounding mountains create the setting and ambiance of Rimfire Ranch on 2.5 acres in the Santa Ynez Valley. A beautifully maintained 3BR/2BA home with remodeled bathrooms, new tile floors in the kitchen, as well as newer appliances including Kenmore Elite stove and oven, is a one of a kind opportunity. A solar electric system runs the all electric ranch on approximately $50 per month. Spa, fencing and x-fencing with irrigated pastures, barn, kennels and paddock complete this perfect picture. And it’s very close to the town of Santa Ynez with great restaurants, coffee house and shopping.

Property information

Lot / Land For Sale in Amber Farms

David & Marlene Macbeth — Sat, 10 Sep 2011 20:51:00 GMT

"GREAT VIEWS-GREAT VALUE"

• lot / land - MLS® $199,500 - PRICE REDUCED

Amber Farms, Santa Ynez - 3185 E Hwy 246, Parcel B Santa Ynez

SANTA YNEZ DEVELOPMENT OPPORTUNITY

Located off Amber Farms Road this 1 acre property with views is level to gently sloping with all utilities available. Water Services is available through Santa Ynez River Water District.

Offered at $350,000

Property information

February 1 - March 31, 2011 Market Update

David & Marlene Macbeth — Wed, 13 Apr 2011 23:54:00 GMT

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

December 1 - January 31, 2011 Market Update

David & Marlene Macbeth — Wed, 09 Feb 2011 00:20:00 GMT

Enclosed is the update of 2months of activity for December 1, 2010 through January 31, 2011, click here to view the updates.. There were a total of 59 newlistings. There were 46 pendingsales. Of the residential sales therewere 35 sales between $199,000 and $600,000, 4 sales between $601,000 and$999,999, 5 sales over $1,000,000 and 2 land sale. There were 29 sale completes. Their were 72 price decreases and 1 priceincrease. The number of current listingsare down slightly; however they are still very high at 296 listings specific tothe Santa Ynez Valley.

Rates continue to fluctuate ona daily basis. Conforming 30 year fixedrates up to $417,000 are at 4.875% at .375 point and Jumbo Conforming Loanswhich are loans up to $729,750 are at 4.875% at 1 point and Super Jumbo Loansare at 5.125% at 1 points for origination. The conforming 5 /1year ARM InterestOnly is at 3.75% at 1 points, the Jumbo 5/1 year ARM Interest Only is at 3.875%at 1 point. The 11th District Cost ofFunds index (COFI) is down at 1508 for the month of January. The 6 month LIBOR rate is at 0.46; last monthit was at 0.46; 12 months ago it was at 0.38.

The chart to the left reflect Yearto Date Sales for the Santa Ynez Valley only.

2010 sales were upapproximately 16.5% from 2009 which is very good. It also reflects that theMedian Sales Price was up about 11.4% from 2009. An increase in the Median Sales Priceindicates that there were a greater proportion of more expensive homes sold in2010 than in 2009. Average Sales Pricedroppped about $25,000 or almost 3%which I think indicates that prices still came down in 2010 but the dropped wasprobably more reflective of lower prices in the upper price ranges. The lowerend property priced under $600,000 has bottomed out.

Average days on the marketagain is probably affected by the upper end price ranges as those propertieshave taken a longer time to sell. If ,as a seller, your property is priced in that range or, as a buyer, you arelooking in that range, the market is moving more quickly. The lower portion of the graphic indicatesthe number of properties sold in distress in comparison to the the totalproperties sold. The number of properties in distress in 2010 and 2010 wereapproximately the same percentage of the market.

Your Real Estate ProfessionalsProviding
Old-Fashioned Service UsingToday's Technology

David Macbeth and Marlene Macbeth

November 1 - November 30, 2010 Market Update

David & Marlene Macbeth — Thu, 30 Dec 2010 17:23:00 GMT

Enclosed is the update of activity for November 1, 2010 through November 30, 2010, click here to view the updates. There were a total of 32 new listings. There were 16 pending sales. Of the residential sales there were 10 sales between $199,000 and $600,000, 1 sales between $601,000 and $999,999, 4 sales over $1,000,000 and 1 land sale. There were 15 sale completes. Their were 30 price decreases and 1 price increase. The number of current listings remain the same; however they are still very high at 300 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 4.75% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.875% at 1 point and Super Jumbo Loans are at 5.125% at 1 points for origination. The conforming 5 year ARM Interest Only is at 2.875% at 1 points, the Jumbo 5 year ARM Interest Only is at 4.875% at 1 point. The 11th District Cost of Funds index (COFI) is down at 1.654 for the month of November. The 6 month LIBOR rate is at 0.46; last month it was at 0.45; 12 months ago it was at 0.47.

Rates continue to be amazing, even with the edging up. However, the lending landscape has changed quite drastically over the past several years and everyday I learn something new. FHA loans and Mortgage Insurance requirements have changed significantly. The previous annual premium a borrower paid was up to 2.25% of the loan amount; the monthly premium was .55%. The monthly premium is now reduced to 1% of the loan amount but .9% of the loan amount for monthly payments. The annual premium is usually added to the loan amount and is amortized but the monthly premiums are due every month included in the payment and determine a buyer's ability to qualify. On a $500,000 loan that adds $5000 to the loan amount instead of $11,250; that's a good thing. But on a monthly basis for each $100,000 loan amount, the buyer contributes $75.00 for mortgage insurance premium; that makes the monthly mortgage insurance payment $375.00 for a $500,000 loan and a hefty sum for any wallet.

The economic outlook for 2011 is looking better for the South Coast which should mean good things for us in the Santa Ynez Valley. My prediction and hope is that our real estate values hold a steady course and employment and new job starts will be better in 2011. My hope for us all is that we can recover, albeit slowly and move toward a stronger and healthier self, a happier and more peaceful world, and a little more personal time for us to reflect and appreciate all that we have. Better stop now before I get too mushy. To all of our friends and clients have a wonderful holiday with your families and a great New Year.

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

September 1 - October 31, 2010 Market Update

David & Marlene Macbeth — Mon, 15 Nov 2010 21:33:00 GMT

Enclosed is the update of activity for September 1, 2010 through October 31, 2010, click here to view the updates. There were a total of 58 new listings. There were 38 pending sales. Of the residential sales there were 25 sales between $199,000 and $600,000, 6 sales between $601,000 and $999,999, 6 sales over $1,000,000 and no land sales. There were 32 sale completes. Their were 86 price decreases and no price increases. The number of current listings are down slightly; however they are still very high at 300 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 4.125% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.25% at .875 point and Super Jumbo Loans are at 4.875% at .5 points for origination. The conforming 5 year ARM Interest Only is at 2.75% at .75 points, the Jumbo 5 year ARM Interest Only is at 4.125% at 1 point. The 11th District Cost of Funds index (COFI) is down at 1.663 for the month of October. The 6 month LIBOR rate is at 0.45; last month it was at 0.46; 12 months ago it was at 0.46.

Rates are amazing, aren't they. At least for the time being but as we all know nothing terrific lasts forever. But when is it going to change. That's the million dollar question. The lending landscape has changed quite drastically over the past several years. Practices, approvals and standards that were once widely accepted have either vanished or transformed beyond the point of recognition. Many banks, which were once extremely careless with their loan underwriting techniques and approvals, have dug themselves into a significant hole that will take many years to climb out of. Promotions such as "'100% Financing"and "No Doc Loans"' were both major contributors to the financial crisis banks and consumers are facing today. Today, banks are making sure they don't make the same mistakes again, so loan underwriting standards have become more stringent than ever before. According to a recent Federal Reserve survey, it was found that about 75% of the banks surveyed indicated they had tightened their lending standards for prime, subprime and commercial mortgages. That was up from about 60% in the previous survey. With this sharp increase in lending standards, borrowers are being turned down for real estate loans at an alarming rate.

Here are the top seven reasons banks are denying home loan requests:

1. Poor credit: The borrower may have a heavy down payment or excellent equity built-up in their house, but if their credit score is under a certain threshold, obtaining a new loan or refinance from a traditional bank is challenging. Even FHA (Federal Housing Administration) loans, which have traditionally catered to borrowers with lower FICO scores, have an average borrower credit score of 693, according to CNN Money, which is above the national average.

2. Insufficient liquidity: If the borrower doesn't have a heavy down payment (20%-30% for most banks) and strong excess liquidity, banks don't want to take the risk on funding their loan.

3. Lack of income: The borrower doesn''t have consistent proof of income for the last two to five years. Regardless of how good their credit score is or how much equity they have in their home, if they can't show the bank proof of income, loan approval will be tough. This can be a big hurdle in the loan process, particularly for retired borrowers.

4. Lying on the application: Banks have learned their lesson and are no longer putting up with borrowers stretching the truth on their applications.

5. Debt: Borrower has excessive debt and their debt-to-income ratio exceeds the bank's guidelines.

6. Unemployment: Most lenders will like to see at least two years of stable work to issue loan approval.

7. Self employment: Lenders are looking at self-employed applicants with a lot more scrutiny these days, making it very tough for these borrowers to get approved.

Obviously some of these newly structured standards are for the betterment of the industry, and our overall economy, but at the same time, home buyers across the country are realizing quickly that reputable credit and stable income aren''92t always enough in qualifying for a loan through a traditional bank.

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

August 1 - August 31, 2010 Market Update

David & Marlene Macbeth — Wed, 29 Sep 2010 22:57:00 GMT

Enclosed is the update ofactivity for August 1, 2010 through August 31, 2010, click here to view the updates. There were a total of 37 new listings. There were 16 pending sales. Of the residential sales there were 13sales between $199,000 and $600,000, 2 sales between $601,000 and $999,999, nosales over $1,000,000 and 1 land sale. There were 24 sale completes. Their were 54 price decreases and no price increases. The number of current listings are upslightly; however they are still very high at 341 listings specific to the SantaYnez Valley.

Rates continue to fluctuateon a daily basis. Conforming 30year fixed rates up to $417,000 are at 4.125% at 1 point and Jumbo ConformingLoans which are loans up to $729,750 are at 4.25% at .875 point and Super JumboLoans are at 4.875% at .5 points for origination. The conforming 5 year ARMInterest Only is at 2.75% at .75 points, the Jumbo 5 year ARM Interest Only isat 4.125% at 1 point. The 11thDistrict Cost of Funds index (COFI) is down at 1.753 for the month ofSeptember. The 6 month LIBOR rateis at 0.47; last month it was at 0.52; 12 months ago it was at 0.67.

The market is hot - lots ofbuyers out there but the weather is hotter. This past Sunday at 107 degrees and counting there werebuyers looking at open houses. That really says something. Dave and I were only prepared forair-conditioned open houses or at least great window coverings to keep out theblazing sun. Our summer was a little on the cool side this year by the accountsof us "Old Timers" and by that I mean long-time residents. However,the last week has been amazing---the entire county is breaking hot temperaturerecords. It should make the grape harvest--all that much sweeter. We have also had our gardener friendsreporting the tomato crop has not been as sweet. Fortunately I am still bringing in my harvest...I am up to 1tomato and 3 green peppers whichon a cost basis has not been the most profitable thing I have done recently. Mycareer as a farmer is definitely not as successful as I had hoped. I think I betterstick to real estate sales---at least there I know what I am doing.

Credit Scores.... a subjectof great concern of late. A fewpoints here or there makes a difference so we need to all keep tabs on whereour individual scores are situated. For potential these were some of the options:

For scores between 620 and 639 the best average annual percentagerate offered was 4.9 percent.
For scores between 640 and 659, the rate was 4.73 percent.
For scores between 660 and 679, the rate was 4.6 percent.
For scores between 680 and 699, the rate was 4.56 percent.
For scores between 700 and 719, the rate was 4.44 percent.
For scores of 720 and above, the rate was 4.3 percent.

That means that for each20-point score increase, the average rate dropped 0.12 percent. On a $300,000home with a 20-percent down payment, a 0.12 percent decline equals about $6,400saved over the course of a 30-year mortgage. If you are trying to buy a house,here is another way to evaluate your options.

Your Real EstateProfessionals Providing
Old-Fashioned Service UsingToday's Technology

David Macbeth and Marlene Macbeth

July 1 - July 31, 2010 Market Update

David & Marlene Macbeth — Mon, 30 Aug 2010 17:04:00 GMT

Enclosed is the update of activity for July 1, 2010 through July 31, 2010, click here to view the updates. There were a total of 39 new listings. There were 18 pending sales. Of the residential sales there were 9 sales between $199,000 and $600,000, 4 sales between $601,000 and $999,999, 4 sales over $1,000,000, 1 commercial property and no land sales. There were 13 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 339 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 4.25% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points. The 11th District Cost of Funds index (COFI) is up at 1.797 for the month of August. The 6 month LIBOR rate is at 0.58; last month it was at 0.71; 12 months ago it was at 0.83

Market activity continues to escalate for the summer and we are pleased with the number of hits to our website and our partner websites. That also means that the number of inquiries and our sales are increasing. Prices continue to remain relatively stable in the under $800,000 range.The balance between new listings and sales continues to increase in the upper end price ranges but the upper end has gained a little momentum. For example, 41% of the new listings were under $800,000; that means only 59% of the new listings were over $800,000. 61% of pending sales were under $800,000; correspondingly 39% were over $800,000. And finally 53% of the sold final sales for this month were under $800,000 and 47% were over $800,000. This confirms, I think, that the shadow inventory that the news media is referring to is in specific price points in the Santa Ynez Valley. Our lower end market continues to stabilize as our inventory is diminishes but the market for upper end properties was a little stronger this month.

The other item of note is the number of Short Sale properties. You can really see a trend in the banks trying to work out deals for distressed homeowners. Our REO market, although steady, has never reached the proportions that were seen in other areas of California or even our own North County. I think the stats to date were 25 REO's in the MLS for the first half of both 2009 and 2010 to date. Our inventory is flooded with Short Sale properties and you can see the number of pendings that are Short Sale Contingent. Two important points on both the prices of REO and Short Sale properties. It has become somewhat of a trend to offer these properties at a "Fire Sale" price. this is not because it is going to sell at that price but the bank or agent is trying to get the highest and best offer. We have heard from a reliable source that an excellent property was offered in the MLS at $399,000 but it went Short Sale Contingent with multiple offers at $499,000. Marlene and I feel its true value was the $499,000 price; that would be consistent with the sold comparables of that property. However, many unsuspecting buyers trying to do it on their own without a knowledgable Realtor's assistance would never know about the bid-up because it may take 6 months for the bank to process the short sale. By that time they would have wasted 6 months looking for another "really hot deal" that was never there in the first place, and the market passes them by. So it is time for a little "Buyer Beware." No one ever rings the bell when the markets starts turning around and moving in the other direction.

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology

David Macbeth and Marlene Macbeth

June 1 - June 30, 2010 Market Update

David & Marlene Macbeth — Mon, 26 Jul 2010 17:33:00 GMT

Enclosed is the update of activity for June 1, 2010 through June 30, 2010, click here to view the updates. There were a total of 45 new listings. There were 16 pending sales. Of the residential sales there were 10 sales between $199,000 and $600,000, 2 sales between $601,000 and $999,999, no sales over $1,000,000 and 2 land sales. There were 25 sale completes. Their were 44 price decreases and no price increases. The number of current listings are up slightly; however they are still very high at 341 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 4.75% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points. The 11th District Cost of Funds index (COFI) is down at 1.791 for the month of July. The 6 month LIBOR rate is at 0.71; last month it was at 0.75; 12 months ago it was at 0.96

Market activity continues to escalate for the summer and we are pleased with the number of hits to our website and our partner websites. That also means that the number of inquiries and our sales are increasing. Prices are remaining relatively stable in the under $800,000 range but the amount of inventory over that number is staggering. As you can see by the balance between new listings and sales, our inventory is still increasing but increasing in the upper end price ranges. For example, 20% of the new listings were under $800,000; that means 80% of the new listings were over $800,000. 68.8% of pending sales were under $800,000; correspondingly 31.2% were over $800,000. And finally 60% of the sold final sales for this month were under $800,000 and 40% were over $800,000. This confirms, I think, that the shadow inventory that the news media is referring to is in specific price points in the Santa Ynez Valley. Our lower end market is stabilizing because our inventory is diminishing at that price point, absorbed by a higher percentage of sales. It will be interesting to run this analysis next time and see if it remains in a holding pattern or changes, just to keep us on our toes. In the meantime, it is just another great day here in Paradise.

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth

May 1 - May 31, 2010 Market Update

David & Marlene Macbeth — Tue, 13 Jul 2010 22:33:00 GMT

Enclosed is the update of activity for May 1, 2010 through May 31, 2010, click here to view the updates. There were a total of 55 new listings. There were 5 pending sales. Of the residential sales there were 2 sales between $199,000 and $600,000, 2 sales between $601,000 and $999,999, 1 sale over $1,000,000. There were 21 sale completes. Their were 26 price decreases and 2 price increases. The number of current listings are down slightly; however they are still very high at 335 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis. Conforming 30 year fixed rates up to $417,000 are at 4.75% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points. The 11th District Cost of Funds index (COFI) is down at 1.791 for the month of July. The 6 month LIBOR rate is at 0.75; last month it was at 0.66; 12 months ago it was at 1.11

Market activity is escalating for the summer. That means that the number of inquiries and sales are increasing. Prices are remaining relatively stable in the under $1,000,000 range but the amount of inventory over that number is staggering. Price adjustments for very special properties in the over 1,000,000 range could be viewed as much as 30% and sometimes up to 40%. A very special property would be described as immaculate with amazing amenities including spectacular views. The good news is that it allows more buyers to enter the market and the Santa Ynez Valley remains a wonderful place to live. We hope you all enjoyed another phenomenal 4th of July celebration and found connecting with your neighbors makes this place all the more special. After all, who would not to spend just another day in Paradise.

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth

April 1 - April 30, 2010 Market Update

David & Marlene Macbeth — Tue, 01 Jun 2010 17:38:00 GMT

Enclosed is the update of activity for April 1, 2010 through April 30, 2010, click here to view the updates. There were a total of 36 new listings. There were 21 pending sales. Of the residential sales there were 11 sales between $199,000 and $600,000, 3 sales between $601,000 and $999,999, 7 sale over $1,000,000. There were 16 sale completes. Their were 40 price decreases and no price increases. The number of current listings are up slightly; however they are still very high at 355 listings specific to the Santa Ynez Valley.

Rates continue to go up and down on a daily basis. Conforming 30 year fixed rates up to $417,000 are at 4.75% at 1 point and Jumbo Conforming Loans which are loans up to $729,750 are at 4.75% at 1 point and Super Jumbo Loans are at 5.625% at zero points for origination. The conforming 5 year ARM Interest Only is at 3.5% at 1 point, the Jumbo 5 year ARM Interest Only is at 5.125% at zero points. The 11th District Cost of Funds index (COFI) is up at 1.859 for the month of May. The 6 month LIBOR rate is at 0.66; last month it was at 0.47; 12 months ago it was at 1.28.

The Economic Forecast..... we went to yet another one several weeks ago. We loved the speaker from Beacon Economics in Orange County. He had an interesting view..... Trends and Fundamentals... and it made sense considering all the conflicting information that we hear on a daily basis. He indicated that the trend we are on right now is good. With all the government programs, low interest rates, reduction in inventories and pent up demand, the economy and the real estate market looked to be stabilizing and the number of sales was increasing as buyers started to buy the properties that sellers are now willing to sell at the price that buyers are willing to buy. The problem he was concerned with was the the underlying problems that caused the Recession in the first place do not appear to have changed. We still have a huge deficit, we still have major unemployment, we are still not saving enough money as individuals (it's better but still not enough). He felt we were walking a narrow tightrope out of the recovery but everyone must be careful of any missteps. Items specific to the Santa Ynez Valley were unfortunately not as prominent in this presentation because funding for this forecast has been impacted. So I am going to make a few of my own prognostications. I really do feel we are coming out of recession. There are lots of buyers out there looking. Some of them are reluctant to pull the trigger and write an offer but that trend is changing. I do not feel that home prices are going to escalate rapidly as they did in 1998-2006 and it may be 5 years, even 10 years before we see a return to what we lost. I do believe it will come back. The Santa Ynez Valley remains a great place to live; we have perfect weather, low crime, and nice neighbors, we are relatively uncongested and great schools, one of which is our high school which posted the highest API scores in the County. Way to go PIRATES!!!!

Be sure and check out our Website and Property Search engines. We have added Lompoc area properties to the Search through their MLS and you can find everything available throughout the County. Looking for Short Sales and REO's. Just indicate that on the bottom field of the form and you will get the most up-to-date list available. We are still working on updating the email and contact information but we are almost finished and some of you as requested will be receiving your updates via email. We decided to mail it again this time as we have a new promotional item - a bookmark. We are not at the "Kindle-stage" yet... not everything should be electronic but who knows. I think we did it because we both like to read and we LOVE the poem. It sums up how we feel about living in Santa Ynez. Valley...truly blessed. If we do not have your current information on file, please send us an email with that information. We will be continuing to update our contact list by phone so you may receive a call from us or our assistant who is helping with this task. 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 Santa Ynez Valley real estate from................

Your Real Estate Professionals Providing
Old-Fashioned Service Using Today's Technology
David Macbeth and Marlene Macbeth

Top 5: Expand Outdoors, Increase Your Home's Value

David & Marlene Macbeth — Thu, 06 May 2010 20:30:00 GMT

Expand Outdoors, Increase Your Home's Value

With many Americans experiencing a financial pinch these days, there is a growing trend among homeowners nationwide to look to the outdoor areas of their own property for not only relaxation and entertainment value, but to also expand their living space and thereby, increase their home’s value.

Through my national network of leading real estate professionals, the Top 5 in Real Estate Network®, I have learned that homeowners across the country are spending more time at home and showing an increased interest in outdoor living areas. By sprucing up your patios, porches and decks, you are making your home more livable now and more attractive to future buyers.

Stylish patios and outdoor rooms with comfortable furnishings and convenient cooking and eating areas provide new opportunities for recreation and relaxing family times. A recent survey by the Propane Education & Research Council, found that 35% of homeowners have a finished outdoor room and 34% say they are planning to design one in the next year or two.

Some of my clients are even foregoing expensive vacations in favor of putting in a swimming pool. The reality is, however, that you do not need to make a major investment to improve your outdoor living areas. Here are five quick additions that will make an immediate difference:

1. Outdoor lighting units
2. Gas grills with cooking and food preparation surfaces
3. Outdoor fire pits or fireplaces
4. Patio heaters
5. Mosquito/bug eliminators

In any market, financial planners all agree, real estate is the best investment one can make. Increasing the value of that investment with features that extend and enhance the family living area is always a wise decision. For more information and ideas, feel free to e-mail me…and be sure to pass this on to family and friends who are ready to explore the “great outdoors.”