The price of this spacious property has been reduced from $835,000 to $799,000 and is easy to show. Call Emily @ 805.252.2773 for a showing.
Thursday, July 29, 2010
Price Reduced!
The price of this spacious property has been reduced from $835,000 to $799,000 and is easy to show. Call Emily @ 805.252.2773 for a showing.
Mortgage Update
Mortgage Update Through the First Half of 2010
By Adam Black of Coast Village Lending, a Division of Prospect Mortgage
While we are still as an industry working our way through the challenges of the “Credit Crunch”, so far 2010 has brought many of positives. First, rates have been at historic lows at a point when most industry analysts were expecting them to go higher. As part of the 2008 Stimulus Act, the Fed was buying mortgage backed securities from Fannie Mae and Freddie Mac to the tune of $1.25 trillion.
At the start of 2010 the Fed started to slowdown and ultimately stopped their mortgage backed security purchase program by the end of the 1st Quarter of 2010. Without the Fed buying mortgages from Fannie Mae and Freddie Mac, the unanimous expectation was that their rates at would start to inch up. In fact, the opposite happened and we are now seeing conforming rates at all time lows.
Second, FHA financing continues to provide opportunity for more buyers to get into the market with little money down with loan amounts up to $729,750. Although the upfront mortgage insurance premium (the charge FHA adds to their loans as an insurance against default) increased from 1.75% to 2.25% FHA it is still a great financing option for buyers that otherwise may not have one.
Also, we have seen more use of the FHA 203k renovation loans. These loans allow buyers to finance home improvements into the purchase loan. Now, fixer properties become more of an option to first time buyers as they can use the renovation loan for anything from a new roof to new appliances, kitchen or bath. This loan can also be used by existing homeowners that do not have much equity, but would like get additional funds to improve their home.
Last, Jumbo and Super Jumbo financing is really starting to open up. Over the last few years Jumbo financing has been very difficult to find, and when we did find it, it was very restrictive. In the last six months we have seen the Jumbo loan market start to heat up. There are new products available, more investors offering Jumbo programs and extremely low rates. We now have a broad offering of well priced 5, 7 and 10 year ARM’s as well as competitively priced 30 year fixed loan options.
Written by Adam Black, Senior Loan Officer
Coast Village Lending, a Division of Prospect Mortgage
Adam can be reached at: 805-452-8393
By Adam Black of Coast Village Lending, a Division of Prospect Mortgage
While we are still as an industry working our way through the challenges of the “Credit Crunch”, so far 2010 has brought many of positives. First, rates have been at historic lows at a point when most industry analysts were expecting them to go higher. As part of the 2008 Stimulus Act, the Fed was buying mortgage backed securities from Fannie Mae and Freddie Mac to the tune of $1.25 trillion.
At the start of 2010 the Fed started to slowdown and ultimately stopped their mortgage backed security purchase program by the end of the 1st Quarter of 2010. Without the Fed buying mortgages from Fannie Mae and Freddie Mac, the unanimous expectation was that their rates at would start to inch up. In fact, the opposite happened and we are now seeing conforming rates at all time lows.
Second, FHA financing continues to provide opportunity for more buyers to get into the market with little money down with loan amounts up to $729,750. Although the upfront mortgage insurance premium (the charge FHA adds to their loans as an insurance against default) increased from 1.75% to 2.25% FHA it is still a great financing option for buyers that otherwise may not have one.
Also, we have seen more use of the FHA 203k renovation loans. These loans allow buyers to finance home improvements into the purchase loan. Now, fixer properties become more of an option to first time buyers as they can use the renovation loan for anything from a new roof to new appliances, kitchen or bath. This loan can also be used by existing homeowners that do not have much equity, but would like get additional funds to improve their home.
Last, Jumbo and Super Jumbo financing is really starting to open up. Over the last few years Jumbo financing has been very difficult to find, and when we did find it, it was very restrictive. In the last six months we have seen the Jumbo loan market start to heat up. There are new products available, more investors offering Jumbo programs and extremely low rates. We now have a broad offering of well priced 5, 7 and 10 year ARM’s as well as competitively priced 30 year fixed loan options.
Written by Adam Black, Senior Loan Officer
Coast Village Lending, a Division of Prospect Mortgage
Adam can be reached at: 805-452-8393
Weekly Snapshot Statistics - Santa Barbara Real Estate Market
For the week of 7/19/10-7/25/10:
73 new listings
64 price changes
34 sales pended (27 under $1M, six $1-2M, one $4-8M) *20% over $1 million
28 closed
31 off market (12 expired, 16 canceled, 3 withdrawn)
9 back on market
Have a great week!
73 new listings
64 price changes
34 sales pended (27 under $1M, six $1-2M, one $4-8M) *20% over $1 million
28 closed
31 off market (12 expired, 16 canceled, 3 withdrawn)
9 back on market
Have a great week!
Recent Newspress Article on the Economic Outlook Presented by Mark Schniepp
Santa Barbara News-Press
SOUTH COUNTY REAL ESTATE MARKET ON STRONG REBOUND
STEVE SINOVIC, NEWS-PRESS STAFF WRITER
July 9, 2010 5:44 AM
South Santa Barbara County's residential real estate market has managed to tread the troubled waters of the economic downturn and is now making a double digit rebound.
That was the message delivered Thursday by economist Mark Schniepp, who gave a decidedly more upbeat mid-year economic update to 200 members of the Santa Barbara Association of Realtors at the Cabrillo Arts Center. He said home sales are up 22 percent from the same six-month period (January-June) of a year ago: 428 transactions. The median price, less Hope Ranch and Montecito, was $855,000, up 17 percent from last year's rock-bottom median of $730,000.
Like many other regions in California, "We're doing better than we did last year at this time," said Mr. Schniepp, principal of the California Economic Forecast. "Last year was completely different because many people were concerned about their day-to-day business operations and wondering if they would have a job.
Consumer confidence was very low and people were scared to make large purchases.
According to a survey conducted by Mr. Schniepp's office, about 30 percent of the home and condo sales in the first six months on the South Coast were to investors. "Certainly, some of these are people of means who are coming in to purchase second homes or rentals," observed Mr. Schniepp. "But we've also seen a lot of first-time home buyers taking advantage of lower prices, interest rates and tax credits -- especially for condos in the 400s.
Of the 400-plus transactions, Mr. Schniepp said 38 percent were over $1 million; approximately 42 percent were under $800,000. "We haven't had that many (in this price point territory) since 2002," said Mr. Schniepp.
That's where the market's hot right now.
Statewide, California median home prices are up 32 percent from the trough.
For those who can afford to purchase homes in south Santa Barbara County, Mr. Schniepp calculates about 25 percent of the transactions are cash sales. Those who need to acquire mortgages are finding tighter lending requirements where jobs, good credit scores, down payments and co-signers are part of the equation, even at the lower end.
Mr. Schniepp said potential home buyers now can secure a 4.57 percent interest rate on a 30-year mortgage. "That's a historical low compared to what it was 10 or 20 years ago,” he said.
But all the news he presented wasn't good.
While some may be ready to take the home buying plunge, South Coast residents, including many of the real estate agents present, aren't convinced the recession is entirely over, thanks largely to chronically high unemployment.
"It's not surprising you feel that way, but the recession ended a year ago," declared Mr. Schniepp, who displayed a dozen charts showing growth in key areas of the economy. "Unlike previous recessions, there are just so many fits and starts, especially on the jobs front," said Mr. Schniepp, who said the economy has managed to register three consecutive quarters of growth to its gross domestic product.
"We're seeing consumers spend again, but not in the numbers following earlier downturns. They are just tiptoeing back into stores.”
"The stock market is up 70 percent over the low, but we've seen some weaknesses and corrections lately, thanks in part to the dubious news about the European debt phenomenon that is weighing on (some) investors.
Will that contagion affect us? Mr. Schniepp believes, barring an unforeseen event, that it won't derail the U.S. economic recovery and push us into a double-dip recession.
The dearth of significant job creation is causing all the gloom, especially concerns of how the private sector will absorb 8.3 million Americans who lost their jobs in a brutal two-year period back into the economy. Complicating the recovery are 70 million Gen Yers, the cohort born after 1990, and looking to enter the job market.
"We haven't had this demographic phenomenon" in past downturns, said Mr. Schniepp, adding Santa Barbara labor markets are weak, and he doesn't predict any significant uptick until the end of the year and into 2011.
"The current year is a bumpy one, a transitional one," said Mr. Schniepp, echoing a sentiment from previous presentations. Signs of "a more exuberant expansion" will be felt in 2011 and 2012, when higher employment figures, continuing home sales and increased construction will be significant contributors to economic growth, said Mr. Schniepp.
For more information about Thursday's presentation, contact mark@californiaforecast.com
e-mail: ssinovic@newspress.com
SOUTH COUNTY REAL ESTATE MARKET ON STRONG REBOUND
STEVE SINOVIC, NEWS-PRESS STAFF WRITER
July 9, 2010 5:44 AM
South Santa Barbara County's residential real estate market has managed to tread the troubled waters of the economic downturn and is now making a double digit rebound.
That was the message delivered Thursday by economist Mark Schniepp, who gave a decidedly more upbeat mid-year economic update to 200 members of the Santa Barbara Association of Realtors at the Cabrillo Arts Center. He said home sales are up 22 percent from the same six-month period (January-June) of a year ago: 428 transactions. The median price, less Hope Ranch and Montecito, was $855,000, up 17 percent from last year's rock-bottom median of $730,000.
Like many other regions in California, "We're doing better than we did last year at this time," said Mr. Schniepp, principal of the California Economic Forecast. "Last year was completely different because many people were concerned about their day-to-day business operations and wondering if they would have a job.
Consumer confidence was very low and people were scared to make large purchases.
According to a survey conducted by Mr. Schniepp's office, about 30 percent of the home and condo sales in the first six months on the South Coast were to investors. "Certainly, some of these are people of means who are coming in to purchase second homes or rentals," observed Mr. Schniepp. "But we've also seen a lot of first-time home buyers taking advantage of lower prices, interest rates and tax credits -- especially for condos in the 400s.
Of the 400-plus transactions, Mr. Schniepp said 38 percent were over $1 million; approximately 42 percent were under $800,000. "We haven't had that many (in this price point territory) since 2002," said Mr. Schniepp.
That's where the market's hot right now.
Statewide, California median home prices are up 32 percent from the trough.
For those who can afford to purchase homes in south Santa Barbara County, Mr. Schniepp calculates about 25 percent of the transactions are cash sales. Those who need to acquire mortgages are finding tighter lending requirements where jobs, good credit scores, down payments and co-signers are part of the equation, even at the lower end.
Mr. Schniepp said potential home buyers now can secure a 4.57 percent interest rate on a 30-year mortgage. "That's a historical low compared to what it was 10 or 20 years ago,” he said.
But all the news he presented wasn't good.
While some may be ready to take the home buying plunge, South Coast residents, including many of the real estate agents present, aren't convinced the recession is entirely over, thanks largely to chronically high unemployment.
"It's not surprising you feel that way, but the recession ended a year ago," declared Mr. Schniepp, who displayed a dozen charts showing growth in key areas of the economy. "Unlike previous recessions, there are just so many fits and starts, especially on the jobs front," said Mr. Schniepp, who said the economy has managed to register three consecutive quarters of growth to its gross domestic product.
"We're seeing consumers spend again, but not in the numbers following earlier downturns. They are just tiptoeing back into stores.”
"The stock market is up 70 percent over the low, but we've seen some weaknesses and corrections lately, thanks in part to the dubious news about the European debt phenomenon that is weighing on (some) investors.
Will that contagion affect us? Mr. Schniepp believes, barring an unforeseen event, that it won't derail the U.S. economic recovery and push us into a double-dip recession.
The dearth of significant job creation is causing all the gloom, especially concerns of how the private sector will absorb 8.3 million Americans who lost their jobs in a brutal two-year period back into the economy. Complicating the recovery are 70 million Gen Yers, the cohort born after 1990, and looking to enter the job market.
"We haven't had this demographic phenomenon" in past downturns, said Mr. Schniepp, adding Santa Barbara labor markets are weak, and he doesn't predict any significant uptick until the end of the year and into 2011.
"The current year is a bumpy one, a transitional one," said Mr. Schniepp, echoing a sentiment from previous presentations. Signs of "a more exuberant expansion" will be felt in 2011 and 2012, when higher employment figures, continuing home sales and increased construction will be significant contributors to economic growth, said Mr. Schniepp.
For more information about Thursday's presentation, contact mark@californiaforecast.com
e-mail: ssinovic@newspress.com
Saturday, July 24, 2010
Thursday, July 22, 2010
Have San Roque Rental Available
This hilltop San Roque rental with breathtaking views is available now for $1175/month. Please call Emily at 805.252.2773 for more information or for a showing. We begin our showings next week.
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