| Village Properties named "The Best Real Estate Company" by the Santa Barbara News Press Readers Poll Spring has sprung!
After a good rainy season that was almost exactly our average annual amount of rain, everything is green and growing. It is beautiful whether you are in the Santa Ynez Valley looking at the new growth on the grape vines, in Lompoc seeing the wildflowers, or on the South Coast looking at the Channel Islands. We have much to appreciate here in our little paradise.
Speaking of growth, we are so proud of our now 140 plus Realtors, a very talented and dedicated marketing department, and our administrative staff. Their combined efforts have not been lost on our loyal clients as we were once again named “The Best Real Estate Company” by the Santa Barbara News Press Readers Poll.
We also celebrated two milestones this Spring. First was the 14th anniversary of the formation of Village Properties in May of 1996. Second, we are excited to announce that the Village Properties Teachers Fund has passed over $750,000 in donations to local classrooms! Much of this money is due to the generosity of our wonderful agents, the Orfalea Foundation, and donations from members of the local community. We do accept tax deductible donations of any size (the Fund is a 501C3 corporation). In addition to receiving a tax deduction, you benefit from knowing that you have contributed to one of the most important aspects of our community, the education of our young people. Perhaps the best part is receiving a thank you note from 20 happy school children and one VERY appreciative teacher.
Happy Spring to all of our friends and Thank You once again for doing business with Village Properties. Written by Ed Edick and Renee Grubb, Owners of Village Properties Lending Update - Exciting News
There is some very exciting news for California buyers right now. The State of California has stepped in to fill the gap created by the expiration of the Federal First Time Buyer tax credit. The State bill has two provisions, one for newly constructed homes and one for first time buyers (anyone who hasn’t owned a primary residence within the past three years). The credit(s) are for the lesser of 5% of the purchase price up to a maximum of $10,000 which is allocated over three years. There are no income restrictions and, most importantly, buyers can reserve the credit in advance of their escrow closing. But, the funds are limited, so getting into an escrow sooner rather than later and making a reservation will be critical to securing the credit. Check out www.ftb.ca.gov for more details. As anticipated, FHA has become a bit more restrictive and costly with the up front mortgage insurance premium being raised from 1.75% to 2.25%. However, with the ability to purchase with only 3.5% down up to loan amounts of $729,750 and a historically low rate, this is still an unprecedented opportunity for many borrowers. FHA has hinted about more restrictions to come, so time is of the essence here as well. Recently, 30-year fixed mortgage rates entered an uncertain world. While some expect these rates to rise 0.5-1.0% by year’s end, others think that the rates will stabilize a bit over historic lows. However it turns out, there promises to be much more volatility in these rates. Locking in an interest rate early in a purchase transaction may save a lot of stress and heartache. Trying to determine the perfect day to do this, instead of being happy with a rate that would have been inconceivable a generation ago is not a wise idea. If you can lock in a good rate, do it. ARM and Jumbo rates and products continue to lessen. Coast Village Lending/Prospect Mortgage is perfectly situated to help you in these areas. As a direct mortgage lender we offer pricing and control to suit your transaction. Because we have the ability to broker loans we often have products that are unavailable elsewhere. Our latest offering is a 5-year ARM in the low fours with loan amounts up to $4,000,000 with some extremely attractive additional features. Contact one of our in-house lenders, Maddox Rees, Tim Taylor or Adam Black for more information.
Written by Maddox Rees of Coast Village Lending
Santa Barbara Market - Early Spring Update
Two things typically occur every March, the beginning of spring and March Madness in college basketball. Well, spring has sprung and the real estate market has its own version of March Madness this year. There has been a sense of the market changing – in a good way. Two of the most impressive figures regarding this month’s market are the overall months of inventory which came in at 4.7 (see below for explanation) and the number of listings that went into escrow during March (143 listings). Both of those figures are records that are not surpassed by any other month in at least the last 2 years.
One indicator that economists typically use for watching the real estate market is the median sales price. This is the price that marks the point that half of all sales are above and half are below. The median sales price of single family homes and PUDs (planned unit developments) for March was $890,000 which is 8.5% higher than last year’s March median. That number is also about 17% higher than the median for the month of January. The year-to-date median is $811,250 compared to a year ago at this time when the median was $825,000. The difference between the two medians is nominal.
In the graph provided, it indicates the quarterly median prices over the last three years for single family homes and PUDs. Even though this past quarter appears slightly less than the previous two quarters, note the Trend Line is an “upward” projectery.
Another interesting fact is that year-to-date there were 13 less new listings than last year but 30 more homes sold than the same time last year.
As mentioned above, our overall market is averaging a 4.7 months of inventory. “Months of inventory” refers to the number of months it would take to sell all available listings. The figure of 4.7 represents a very stable market, and includes single family homes, PUDs and condos. The figure for just single family homes and PUDs is 5.2 months of inventory while condos come in at 3.5 months of inventory. The Goleta area is the most active area at 2.9 months. Montecito is the least active at 13.5 months. Keep in mind that the numbers utilized to calculate these figures are relatively small. Large percentage swings can occur with just a few additional transactions. According to data that goes back to March 2008, this is the lowest months of inventory in the last two years, a sign that the market is gaining strength.
Another encouraging figure is the number of listings that went into escrow (referred to as “pending sales”). A total of 143 single family homes, PUDs and condos went pending during March. This is the highest in the last two years for a single month. The median for the pending sales of single family homes, is in the $900,000 range.
Condos are a different picture. The median sales price for condos in March was $417,500 which is almost 18% less than a year ago. Because many of these properties are considered affordable, 29 more units sold this year than last year in the same time period. There are 32 fewer new condo listings this year than last year. As mentioned above, there are currently only 3.5 months of inventory for condos. Perhaps with the dwindling supply, we may begin to see prices on these units begin to rise.
Economists say that a healthy housing market enforces a healthy economy. Let’s see if the beginning of our rosy spring continues on through the year!
Written by Carol Kruckenberg of Village Properties Santa Ynez Valley Market Update
They say if you want three different opinions about the economy ask three economists. However, two of the most respected economists in the Santa Ynez Valley area both projected the real estate market to start getting back on tract in 2010. Based on the sales figures for the first quarter 2010 compared to 2009 they were both right. A surprise to many, the number of residential sales increased by 68%, average priced home increased by 9%, median priced increased by 3% and dollar volume increased by a whopping 84%.
The latter is a hopeful indicator the high end of the market is also picking up. In both quarters the over one million dollars grew proportionately (12% of sales), but with 2009’s highest sale at $2,255,000 and 2010’s at $4,000,000. It is anticipated with the combination of bargain prices, low interest rates and most likely an increase in capital gains tax in 2011 there will be additional interest and activity in the above one million dollar range for the balance of 2010. In the under one million dollar homes we expect the market to be status quo as prices are starting to increase due to very obvious limited inventory.
Written by Wayne Natale of Village Properties
Newsletter coordinated by Sylvia Stallings & edited by Patty Tunnicliffe of Village Properties
| Village Properties and Christie’s Fine Art Auction House Present…
An Opportunity for Our Clients, to Auction
Fine Paintings, Furnishings, and other Decorative Arts.
Christie’s, the world’s leading art business, established in London in 1766 by James Christie, conducts some of the most important auctions in the world, selling paintings, furnishings, and other decorative arts. They offer their clients the opportunity to place items to be considered for auction in over 80 categories, including fine paintings, sculpture, silver, jewelry, photography, wine, furniture, ceramics, porcelain, watches, musical instruments, memorabilia, and collectibles.
If you have a desire to submit any items as described above, or if you have general questions about placing items for auction, please feel free to contact your Village Agent.
Village Properties is an affiliate of Christie’s Great Estates, a wholly owned subsidiary of Christie’s that was established in 1995. Christie’s Great Estates is the leading network of real estate brokers dedicated to the marketing and sale of important properties. The network comprises more than 800 real estate offices and nearly 35,000 sales associates in more than 40 countries.
With offices in Village is here to offer you our Real Estate expertise for all of the Central Coast. and speak with an Agent in any of our offices. for up-to-date
real estate offerings. |
