In This Issue:
LATEST & GREATEST... SANTA BARBARA REAL ESTATE SNAPSHOT:
July 19 - August 15, 2010
New listings: 205
Price Improvements: 237
Pending: 117
(break down:) Sub $1million: 77
$1-2M: 25
$2-4M: 10
$4-8M: 4
$8M+: 0
Closed: 96
Off Market: 103
Back On market: 29
This is a look at statistics provided through the Santa Barbara Multiple Listing Service over the past month. They include single family residences and condos, from Carpinteria to Goleta.
Green is Alive and Well! Recently it has seemed that energy and environmental issues have taken a back seat to the noise and smoke of the foreclosure, REO, and Short Sale market. Inevitably, this major issue has sucked up a lot of attention with the public and within our real estate industry. In fact, there is a lot going on in the "green" area as well. Let's look at some good and a little to create caution.
Commercial real estate and business in general have been very active in adopting energy efficiency and a variety of environmental improvements. With financial challenges to commercial occupancy and investor returns, the ability to create immediate improvements to the rental bottom line have really caught the attention of building owners as well as major tenants. This activity creates discussions and "general interest" press coverage about things like Walmart and the Kroger grocery chains saving millions of dollars on utilities across the country. Homeowners see these stories and are more open to your messages that upgrades can produce measurable savings.
EcoBroker® Carson Matthews, tracks the sale of third-party certified homes in the Atlanta market on his website; and he reports that these homes are a larger percentage of the market than they have ever been, and they are selling with fewer days on the market. That's very good news. EcoBroker® Cheryl King's company, Hybrid Home Living, has been working with investors in the Phoenix market foreclosure properties to use green upgrades to make the homes more attractive and marketable. This innovative approach helps clear these properties from the market more quickly and upgrades the existing housing stock. These are two examples of green activity in what is still a troubled real estate market.
Government incentives at federal, state, and local levels are making it easier for homeowners to improve their homes at more reasonable cost. Some of the federal tax credit incentives will end this year, unless they are extended by Congress. This creates a good reason for homeowners to get these eligible upgrades done before December 31. Other incentives are in place until 2016, but the cost of these alternative energy projects is probably as low now as it will get with plenty of contractors available and the equipment companies competing for a smaller retrofit market. Lots of state and local incentives are showing up with incentive dollars approved in past years and just now getting actual funding at the local levels. Keep your eye on Database of State Incentives for Renewables and Efficiency and stay in touch with your state energy offices (find them through the National Association of State Energy Officials) for these benefits available to the sphere of homeowners you connect with regularly - and for yourself! In addition to all of these programs, the Home Star legislation is still working its way through Congress as part of the Jobs Bill. That program will add additional incentives for quality retrofit projects.
A note of caution: consumers are being bombarded with "green" claims. They are leery of things that sound too good to be true. As EcoBrokers we spend a lot of time and effort identifying and avoiding greenwash. With the current market sentiment, this becomes even more crucial. The comfort and health messages of good environmental choices do resonate with homeowners. Saving money is important as well, but they hear a lot of exaggerated claims, so go easy on that message. "Future proofing" - preparing now for the inevitable rising utility costs in the near future - is a personal security message that also gets good responses. Use the tools, use them professionally, and be prepared to back up all of your statements. You have the background to stand out with authentic professional service. So, Green is NOT dead. It has been hiding a bit and is really coming back to the attention of your clients at a time when the market need is great and the opportunities are numerous. Learn what is going on in your market and what your target clients need the most. There are good programs out there. The "free lunch" financing is gone and will not be back, at least in the foreseeable future. Use what is there, explain to your customers and clients how they will benefit and build your business on the solid footing of good advice. High End Sales Increase A surprising sign of our current market is the 92% increase in the number of home sales over 4 million as tracked by our local Multiple Listing Service . Total sales have increased by 30% in 2010 compared to the year before, due in part to the incentives given to first time home buyers. So to see such a dramatic increase in the upper end is a sign of increasing confidence in our area and in real estate as a safe place to invest.
Mortgage Update Through
First Half of 2010
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. All though 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
Fairview Garden's Harvest Festival Sun. Aug 22nd 12-5pm Save the Date:
Big Green Weekend Oct. 7 - 10th
Sauna Bathhouse Natural Building Workshop
with Sasha Rabin of Seven Generations Natural Builders & Vertical Clay www.verticalclay.com @ Quail Springs Permaculture Farm
October 9-16, 2010 REGISTER BY SEPTEMBER 1ST FOR EARLY BIRD DISCOUNT!
Experience the beauty, functionality, and ecological sense of natural building! For first-time as well as professional builders who want to delve into natural materials.
Gain guided hands-on experience building with cob, light straw clay, adobe block, wattle & daub, & integrating materials, prospecting & testing materials, mixing cob, installing windows, attaching doors & roof, sculpting niches, shelves & furniture.
Complemented by slide shows & discussions on theory of natural building, siting, design, passive solar, foundations, natural plasters, earthen floors, roofs, electric & plumbing for earthen buildings.
Cost $675 by Sept 1 / $800 thereafter Includes intensive hands-on workshop, farm fresh & locally grown meals, camping nearby, joyous work, discussions, and celebrations with community, nature walks & high desert star gazing in Quail Springs spring-fed canyon. Capacity 10 students.
Contact to register info@quailsprings.org or 805-886-7239
Designing and building features that effectively trap heat from the sun during the day and release that heat slowly throughout the nighttime. The effect is similar to living near a large body of water where the thermal mass of the water lessens temperature extremes. That means reduced heating and cooling load for a building, and that saves you money. COOL WEBSITE OF THE MONTH: Santa Barbara County's Green Resource Website: |  | Tonight! August 17, 2010 6-8pm The Marquee (at the Granada) 1212 State Street
Santa Barbara, CA 93101
(805) 560-0100 Save The Date For Next Month: Tuesday, September 21st 6-8pm Location TBD to join email:
SOLD: 921 Spring Street Santa Barbara, CA 93103
Listed at $649,000
Very clean 3 bedroom, 2 bath 1,316 sq. ft. home recently redone on SB’s eastside. Short distance to Milpas shopping and SB High. Recent upgrades include: new roof, new kitchen with new cabinets, stainless sink, granite counters, and tile floors, new carpet throughout, fireplace in living room, new fixtures, remodeled baths 2 car garage & more.
1230 Manitou Lane Santa Barbara, CA 93101 Listed at $995,000 (multiple offers)
Wonderful compound 1.4 acres! Home and artist’s studio offers many possibilities. Studio + oversized bedroomm and loft with 1/2 bath. Main house 2bed/ 2.5 bath, very large "L" shaped light filled living room. Surrounded by botanic garden like grounds with protruding boulders, winding paths, rock walls, decks and viewing sites. Canyon/mountain feeling by Hendry’s Beach, the Mesa and Elings Park!
IN ESCROW:
1010 Belmonte Drive
Santa Barbara, CA 93101
Listed at $1,599,000
Beautifully remodeled (2006) craftsman. Hickory hardwood floors throughout this 4000+/- sq. ft. home with 5 bedrooms & 5 full baths, bonus room could be media room or 6th bedroom. French doors open to pool with patio and lawn. In the New Harding University Partnership School District that is now associated with UCSB.
FOR SALE:
1509 Mountain Ave, Santa Barbara, CA 93101
Listed at $699,000
Double lot with updated and charming house on one of the best streets on the Westside! Gorgeous well maintained two bedroom, 1 bathroom home with fireplace, hardwood floors, and mountain views from the deck.
Light and bright with many French doors to the peaceful outdoors – great for indoor outdoor living. Fabulous yard filled with fruit trees, mature landscaping even a secret garden.
By appointment with Elizabeth
FOR SALE:
319 Consuelo Drive Duplex" 3 bed 2 bath + fireplace, rental income $2500 and 2 bed, 1 bath, rental income $2100
Price Adjusted $895,000 A very nicely updated duplex in San Roque with 3 bedrooms, 2 bathrooms and a fireplace on one side and 2 bedrooms, 1 bathroom on the other. Private patios and yards with fruit trees and raised beds, two car garage and interior laundry hook-ups. Central location to hikes, transportation, shopping and in the Hope School District. By appointment with Elizabeth. |
