For Santa Barbara, Montecito, Hope Ranch, Carpinteria/Summerland and Goleta for the Home market for the month of March 2011 a significant number of those escrows that opened in the first two months of the year and those that continued opening in the third month completed the buying process. In March there were 83 sales up from 49 in February and 42 in January. But, the median sales price which came up from $819,500 in January to $845,000 in February fell back to $714,000 in March.

This drop in the median sales price was prompted by the 50+ sales below $1 million that occurred during the month up from the low 30s in February. Sales in the $1 to $2 million bracket also went up but only a little, while the over $2 million range almost tripled going from 5 in February to 13 in March with 5 of those sales selling for over $5 million.

Also going up in March was the numbers of escrows which went to 106 for the month up from 80 in February. What didn’t go up however was the median list price on those escrows which remained at right around $800,000. That median list price on the escrows is amplified by the approximately $787,500 median sold price for the year through March down from about $810,000 the previous year.

After starting out the year behind in the numbers of sales we’ve about reached parity with 2010 numbers. But, while the numbers of escrows are up by about 18% the median list price on those escrows is down about 6% while the median sales price for the year has dropped about 3% to $787,500.

For condos, the numbers of sales started to move up from the previous 2 months when there were 16 in both January and February but they only rose to 21 for March. The median sales price fell to just below $400,000 for the month down from $422,500 in February but up from $382,500 in January. For the year, the median sales price of condos stands at $399,000 5% below where it was in March ’10 when it was $420,000.

The numbers of escrows came up slightly in March to 30 from 24 the previous month but the median list price on those escrows fell rather dramatically from $415,750 in February to $359,450 in March. For the entire year sales are down from 66 to 53 for a 20% decline and escrows are down about 19% falling from 80 to 67. There was 1 sale above $1 million in March with 4 sales between $600,000 and $800,000.  But, 12 of the 21 sales were between $300,000 and $450,000 with 2 from $250,000 to $300,000. 

 The decline in sales in the condo market is primarily due to the increase in purchases in the $500,000 to $800,000 Single Family home market.  That price range of homes saw 45 sales in the month of March alone. When buyers look at a $500,000 to $600,000 condo and add in the substantial Home Owners fees which can be in the $300 to $500 a month range those $700,000 to $800,000 homes start to look attractive. This increase in sales of the lower priced homes is the reason the overall median sales price of homes is declining which also pushes the median sales price of condos down. 

 I’m encouraged by the numbers of Home escrows opened in the first quarter of the year but it looks like the substantial amount of activity is going to remain in that $500,000 to $800,000 bracket. The $1 to $2 million range seems to be stuck in neutral however registering roughly the same numbers of sales each month while the over $2 million market has taken off again at least in March.

It looks like interest rates are getting ready to start moving up and with the $729,000 maximum FHA loan maximum sun-setting in September prices below $1 million could continue to drift down. But, with the substantial amount of demand in that price range there could even be a slight upward pressure in prices.

Warm Regards,

~Nancy

Foreclosures and short sales are still flooding the market, which means many sellers are still up against big inventories and some big bargains that may pull away buyers.

As such, more real estate pros say it’s time to have tough conversations with sellers about slashing their sales price of their home, particularly if it hasn’t garnered any traffic in recent months or years. After all, spring usually brings out more buyers, as home shoppers look to buy and move before the next school year.

We have had a problem with sellers who are nostalgic for the way it was. What home owners could fetch for their home during the housing boom is not practical today. You have to be where the market is, not where it was. Sellers should visit open houses or view online virtual tours of similar homes for sale to see how the seller’s house compares in price and appearance.

You have to be very realistic about what is keeping your home from selling. Sometimes it may actually be the person in the mirror, if your expectations are not realistic. Ultimately, there is a price at which all things sell.

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 California home sales rose in December, posting their highest level since May, according to a report from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), as the inventory of unsold homes dwindled. 

• Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.  December’s sales were up 5.9 percent from November’s revised pace of 491,590 units, but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.  The statewide sales figure is adjusted to account for seasonal factors that typically influence home sales.
• Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.
• “December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce.  “Most of December’s sales opened escrow in October and November.  Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.
• …More to Follow

Warm Regards,

~Nancy 

Santa Barbara Real Estate for all of 2010 compared to 2009 for Montecito, Hope Ranch, Santa Barbara, Goleta, Carpinteria and Summerland

Sales of single family residences finished 2010 about 7.6% ahead of where they were in 2009 just nosing over the 900 units sold mark. The median sales price was barely ahead of the ’09 number finishing the year at about $850,000 only $5,000 up from ’09. The average sales price moved a little farther ahead however finishing the year at around $1.46 million up from $1.4 million in ’09. Escrows were also up for the year rising from 869 in ’09 to 922 for ’10 for a 6.1% rise and the median list price on those escrows, just like the sales price was within about $5,000 of the previous year finishing ’10 at $879,000.

After sales declined 6 out of the 7 months from April through October they started back up in November with 69 and December with 88. But, while the numbers of sales went up in December the median sales price went down, dropping from $865,000 in November to $778,500 in December. The numbers of escrows declined in December from 76 in November to 63 in December. This slowing of sales activities usually occurs because the focus in the last month of the year turns to getting the open escrows closed rather trying to put new escrows together.

Looking at the Districts, Carpinteria/Summerland finished the year 9% ahead of the ’09 rate of sales rising from 73 in that year to 80 in ’10. But, the median sales price declined slightly dropping from $687,500 in ’09 to $675,000 in ’10 for a 2% dip. Montecito also had sales go up in ’10 rising from 143 in ’09 to 153 in ’10 for a 6% gain.  The median sales price for the area remained basically at the previous year’s level rising slightly from $2.35 million to $2.375 million.

For Santa Barbara’s East Side, sales went up from 236 in ’09 to 244 in ’10 for a 3% rise and the median sales price rose from $885,000 in ’09 to $925,000 in ’10 for a 4.5% rise. After moving ahead of the previous year’s pace for most of the year, activity on the East Side looks like it’s slowing with escrows almost at exactly the same level they were at in ’09 and the median list price on those escrows dropping below the $900,000 mark coming in at the same price level as ’09.

Over on the West Side sales finished the year substantially ahead of where they were in ’09 rising from 152 to 196 for a 29% boost. The median sales price for the area is also up going from $743,000 in ’09 to $785,000 in ’10 for a 5.7% gain. The numbers of escrows is even farther ahead than the sales finishing the year with 217 up from 166 in ’09 for a 30% gain.

Hope Ranch finished the year almost exactly where it left ’09. There were 19 sales in ’09 and 21 in ‘10 but the median sales price dipped slightly from $2.335 million to $2,212,500 in ’10. The average sales price was way up however going from $3,276,575 in ’09 to $3,888,212 in ’10. This rise was due to some very high-priced sales in the area.

Goleta South ended the year with 9.2% more sales activity than the previous year going from 87 sales in ’09 to 95 sales in ’10. The median sales price fell dipping from $700,000 to $670,000 in ’10 for a 4.3% drop. But, sales in Goleta North dipped from the previous year going from 162 in ’09 to 157 in ’10 for a 3% decline while the median sales price remained exactly where it ended in ’09 at $705,000.

For condos in the greater Santa Barbara area the picture is not as rosy as the single family dwelling market.  For the last 3 months of 2010 sales declined from 33 in October to 27 in November and down to 25 in December.  The median sales price also dropped for those 3 months from $475,000 in October to $425,000 in November and down to $415,000 in December. The numbers of escrows also dropped substantially from November when there were 31 to 19 in December but the median list price on those escrows did come up from just under $400,000 in November to about $459,000 in December

The numbers of condo sales for 2010 were about the same as we experienced in 2009 rising ever so slightly from 319 to 324. The median sales price continued to decline dropping from $465,000 in ’09 to $434,000 in ’10 for a 6.7% drop. As the median sales price continues to decline it is getting closer to the ’02 level than it is to the ’03 level unlike single family home median sales price which have remained at almost exactly the same median sales price level we experienced in 2003.

Sales of condos have been slowing through the last quarter of ’10 and at this point it looks like they’re going to continue in that direction. There has been real activity in the luxury condo market however with 4 sales over $1 million in December and several more in both October and November. The single family home market has also experienced a surge at the upper level with 5 sales over $5 million in December and 12 sales over $2 million.

The real boost in sales was in the below $1 million market where there were 56 sales up from 38 in the previous month. This rise in that sector is the reason the median sales price for the month tumbled to $778,500. Going into 2011 it looks like the single family home market should remain strong with some upward pressure on prices below $1 million. The $1 to $2 million looks unsteady however while the over $2 million market has remained stable…

For a more in depth discussion of what these #’s might mean to you, give me a call at: 805-452-3052.

Warm Regards,

~Nancy

Image via Wikipedia

Happy New Year my Friends and Clients, I Hope My Wish Finds You and Your Families in the Best of Health. Now that Most of Us Have Put the Tree Away and Cleaned up the Confetti it’s Time to Take a Look at the Current Market. Here’s a snapshot from Lawrence Yun, Chief Economist of the NAR:

“The relationship recently between Mortgage Interest Rates, Home Prices and Family Income has Been the Most Favorable on Record for Buying a Home Since we Started Measuring in 1970.”

Next Week the Stats will be in for the Last Quarter in the Santa Barbara Area. You’ll be the First to Hear how this Relates to Mr. Yun’s Comments. Stay Tuned.

~Nancy

Through 3rd Quarter 2010, the Santa Barbara real estate statistics show that the number of Santa Barbara homes sold is up 11% over the same time last year.

The dollar volume of Santa Barbara homes sold through 3rd Quarter is up 13% over the same time last year. 

The median selling price of homes sold in Santa Barbara is flat year over year. 

There is a good supply of Santa Barbara homes for sale, and there are many sellers ready to make a deal.  Search Santa Barbara Area homes for sale, by clicking on the Search for Properties tab on the left column, than click on the neighborhoods you like!

Weather’s been out of sight, as we head into Thanksgiving. Call me if you’d like to preview some Properties.

~Nancy

Image via Wikipedia

 

Buying a house in Montecito or its neighboring areas is only part of the picture… Where you go for a morning paper and cup of coffee and who you bump into along the way. Is there a buzz, energy, smile in the people around you? It’s been said you are who you surround yourself with. When it’s time for lunch, do you have a wide selection, for Fresh Fish, Ocean views and Blue skies? Is it easy to step into a World class Art or Natural History Museum? Can you look a well cared for African Lion, Monkey or Elephant up close and in the eye. When you can’t make up your mind which of your favorite restaurants to go to (because you have so many)… than start thinking of whether tonight it will be the Opera, the Symphony, a Jazz club, a Broadway play or First run Foreign Film or perhaps a Lecture by a Visting Professor from China that will cap off another perfect day in your NEW home.  The following day as one steps out of their new Santa Barbara home, and greeted by smiling neighbors or strangers that stop for people in crosswalks… that’s when one realizes there’s a little premium for living in Heaven… worth paying.

Look for the latest Santa Barbara Real Estate Statistics in about two weeks. You’ll be pleased to know… the market is moving again!

Warmest Wishes, Nancy

Got some questions, Call me at 805-452-3052  Let me help you answer them.

But, while this is considered a “Buyers Market” people looking to get into a new home without cash, are running into some serious obstacles as lenders come up with new restrictions making it difficult for buyers to get financing. Documentation is checked than checked again. Lenders want to know how much you have and where it’s been. Income to debt ratio is critical and checked and rechecked. I have a great local Mortgage broker who underwrites and funds in-house. Many times this can make a big difference. There are conflicting signs that we are slowly moving up with lower priced homes flying off the shelf, while other indicators say we are still bumping along the bottom… stay tuned.

2. Timeline
The IRS provides a maximum of 180 days to complete an exchange. The timeline begins upon the close of escrow (COE) of the relinquished property. The new property (or properties) must be acquired on or before midnight of the 180th day. No Exceptions!

3. Identification
Identification of all potential replacement properties is required on, or before, day 45 of the exchange. Identification must be in writing and the description of the properties must be unambiguous. The IRS provides two rules for identifying replacement property:
The 3 Property Rule – The 3 Property Rule allows for identification of any three properties, of any value, anywhere in the United States.

The 200% Rule – The 200% Rule is an option for identifying more than three properties. With the 200% Rule, four or more properties can be identified. However, the combined value of all properties identified cannot exceed 200% of the property sold.

4. Tax Deferral
To defer 100% of the capital gains tax liability, two requirements must be met
Reinvest all the Cash – all the cash that was generated from the sale of the relinquished property must be reinvested into the replacement property (or properties).

Purchase Equal or Greater in Value – the value of the replacement property (or properties) must be equal or greater in value to the property sold.
If you would like to discuss the 1031 Exchange process in more detail, please don’t hesitate to call me at (805)452-3052.

Different Ways to Conduct a 1031 Exchange
Investors have the ability to structure 1031 exchanges in several ways. Depending on the investor’s situation any of the four exchange types listed below could be a viable option:

Simultaneous Exchange
In a simultaneous exchange the relinquished property is sold and the replacement property acquired on the same day, with concurrent closings. The simultaneous exchange is rare and investors should still use an Exchange Accommodator when doing a simultaneous exchange.

Delayed Exchange
The most common method of exchanging, the delayed exchange, allows investors to sell a property and then acquire replacement property within 180 days.

Reverse Exchange
The reverse exchange allows investors to acquire replacement property prior to selling. The reverse exchange can be more complicated however, as investors cannot own both the new replacement property and (soon to be) relinquished property at the same time.