Carla Reeves

Analysis of the Santa Barbara Multiple Listing Real Estate Activity as of November 30, 2010

Single Family and Planned Unit Development Homes The first 11 months of 2010 indicate that sales are up about 9% over the same period of 2009, for a total of approximately 850 closed sales. Escrows (not closed yet) are also up about 8% for the year with a median list price on those escrows of $880,000...almost identical to 2009. New listings are up 8% for the year, but the median list price on new listings fell from approximately $11.2 million in 2009 to just under $1 million this year.

Condos After being ahead of the 2009 sales pace for most of the year, number of closed sales are ending up almost exactly where they were last year with 297 in 2010 as compared to 292 in 2009. The number of escrows fell about 6% from 2009, declining from 324 last year to 311 this year. New listings, sales price to original list price ratio and average sales price remain almost exactly as they were at this time last year.

Forecast The general consensus for the greater Santa Barbara area is that real estate activity will remain about the same as this past year. Homes with good bones, charm, great condition, unique amenities (such as views, walk to town and/or school district, depending on the buyer profile) AND aggressively priced will continue to attract buyers....yes even multiple offers! In 2010 850+/- single family/pud home listings have sold/closed and 942 are under contract. That's not a great year...but it it's evidence that there are buyers looking to find their dream home...and yes, they are picky. One of the remaining difficulties is the tight credit standards in lending practices. Great interest rates don't help if a buyer can't get a loan. Many self employed buyers continue to have a difficult time obtaining a loan. However, given a good job with a good outlook, good credit and desire....this is a FABULOUS TIME TO BUY YOUR DREAMHOME! If Congress tampers with the Mortgage Interest Deduction that will definitely affect housing prices. It is also important for FNMAE and FHA to remain healthy because loans are sold in the secondary market. There are currently few, if any Lenders holding loans in their portfolio. If you want to sell, prices today are back to around 2002 prices. If you've owned you home a long time, this is as good a time to sell as it was then, and may be as good as it is for the next five plus years. I've been an active Realtor for 30 years and have experienced the recent breath-taking explosion in housing prices only once in my career, whereas I have seen 4 recessions. It is likely that there will be another housing bubble, but it will take a lot longer than 5 years for that to arrive. If you'd like to have statistics for your particular neighborhood, please let me know. I'd be happy to send them to you by email, snail mail or bring then to you in person. I am always happy to provide you with a market evaluation for your trust.

(My personal thanks to Gary Woods and the SBMLS Statistical Committee for providing the above MLS Stats).

It's the time of year for reflection and a time for giving thanks. Our manager sent a terrific quote to us which I'd like to share with you here.

"Thanksgiving Day is a jewel, to set in the hearts of honst men; but becareful that you do not take the day, and leave out the gratitude." ~ E.P. Powell

Hope your Thanksgiving Day was warm and wonderful with family and friends. Even in troubled times we are blessed to live in the U.S.

Sounds like the title of a song.... Well this one isn't set to music!

So about the beginning of August I received an email inquiring about property. Buyer is working in China and coming back to the US to retire and wants to live in my community. Gives reasonable requirements and states that he will be in my town last week of September.

I reply that I'd be delighted to be of service to him and his family, and that I'll be sending him information through our MLS/IDX. To let me know which homes he is interested in. We do this several times and I now have him educated on price range and on the escrow process ask him to send the $$ into escrow by wire.

He puts me in touch with his Finacial Manager in Montreal, Canada and choses a property to make an offer on. Wants to have a home inspection completed and the usual contingencies, but not upon his physical viewing the property. His Manager is to send me a Cashier's check for $350,000, made out to the Title Company.

As a sidebar: I Googled his China employer and banker and found reasonable websites. My skepticism antennae was raised with the China thing and that someone who is retiring would be interested in a "good middle school". Buyer calls me (through an operator) from China to make sure I had heard from Banker.

I send him the contract by way of Zip Forms and wait for its return. I had kept the Listing Agent informed of a potential buyer. We have some glitches with the scanning, signing and sending... Waiting for some missing pages and I request that he spell his name under his signature and supply complete contact information.

Meantime I email the listing agent that I finally have the offer minus a couple of pages which are being resent, how and when do we present?

Listing Agent emails me that "Oh gosh...we accepted another offer last night! And it was also from a Buyer from China...who docu-signed." What a co-incidence.

Unraveling showed that same Mr. China had made an offer with another Broker (maybe I asked too many questions) for more $$ and had used docu-sign. I don't think Mr. China realized what a small community we are and how closely our MLS members work together!

There's more to this story...but the $$$ never arrived for the offer with the other Broker. A check to me did...but on verifying with Citibank it was not "authorized for deposit". Unfortunately the Seller thought he had his property sold...to a cash buyer!

Why would someone go through this much trouble....what is there to gain. On checking it seems that often too much money is sent, and a rebate is requested. Accusations that the check was cashed and the money has not been returned...on and on.

We agents and Sellers are thrilled to have buyers...especially cash buyers these days. The legitimate Buyers are immediately identifiable...the scammers aren't always. We can't always tell...but it is good to follow our well-honed instincts and check and double check. I learned a long time ago: A buyer who buys, buys every step of the way...until close. If questions aren't answered...and things don't make sense...be aware!

For more information about real estate scams: http://homesteadtitle.wordpress.com/2010/06/15/real-estate-scam-warning/

And that's not the 'hit-parade" I'm talking about. Our local Newspaper's front page article, California has 6 out of ten homes in the top ten of most expensive cities to purchase a home in. Santa Barbara ranks 10th.

Following is the list of average list price for homes:

1. Newport Beach $1.83 million

2. Palo Alto $1.48 million

3. Rye, NY $1.33 million

4. San Francisco $1.33 million

5. La Jolla $1.21 million

6. Greenwich, Ct $1.20 million

7. Wellesley, MA $1.08 million

8. Pasadena $1.04 million

9. Honolulu $1.03 million

10. Santa Barbara $1.02 million

Amazing numbers! Local statistics show that our median price is basically been rolled back approximately six to seven years. The median sales price for the Santa Barbara area MLS was $777,000 for the month of August. Sales activity was up month over month for the first 7 months of 2010 over the first 7 months of 2009 with a slow down of pendings in August. The consensus seems to be that the end of the first time home buyer tax credit was the main reason for the slow down, even here in Paradise. It was a time when many of the locals were able to step into home ownership...often with the help of family finances, especially with historic low interest rates.

The Median Sales Price for Single Family Homes and PUD Homes (excluding all other property types) for the Santa Barbara MLS was $850,000 for year to date 2010 and the exact same $850,000 in the year 2003!

I love how our Broker/Management is always thinking of new innovative ways to create new opportunities for our agents.

Village Properties currently has a Real Estate Concierge Office in one of the best new upscale hotels in Santa Barbara...The Canary Hotel. Located in the heart of our beautiful downtown, with a great restaurant and bar, super meeting and wedding facilities and a rooftop deck with pool, bar, fireplace, entertainment area and KILLER views...this is the place to be! www.canaryhotel.com

Weekdays, this office, located right next to the registration area services the wedding and events sales office for the hotel; on Fridays and Saturdays it becomes the Village Real Estate Concierge Office. The wedding pictures on the wall are changed to photos of beautiful area homes, our laptop is turned on, real estate magazines, maps and information of local interest are placed in our office and the lobby along with an easel and a large professional Open and Welcome to Village Properties sign is placed at the entrance of our office...and we are in business.

We find ourselves making many dinner and activity reservations which is a fun way to connect with visitors to our beautiful community, and we have created some successful business connections both with visitors, and hotel personnel. One of the most fun ways to market this innovate idea to my local clients is to invite them one by one to have lunch with me at the hotel restaurant before my shift or dinner after my shift. I'm finding myself reconnecting with old clients in a fun and lighhearted social setting. Of course we talk business...but mostly I'm reconnecting personally which is what our business is all about.

Our Management felt that this program should be agent driven. We have about 12-15 agents rotating into our weekly schedule. I am one of the team leaders. My co-leader and I take turns monthly for all Concierge responsibilities such as floor schedules, making sure there is ink and paper for the printer and that the laptop is working properly and covering emergencies. I have created an Activities Book filled with information about Santa Barbara Activities and hand-outs. Each of us brings personal and invidual marketing material to give to our visitors, and of course our MLS is on-line.

Management pays a monthly lease fee for the space, provided us with the lap top and we share the cost of any print advertising with management. The team leaders share a small referral fee from any agent making a successful sale originating from the Concierge office. We recently placed a beautiful display ad in a local high end Magazine catering to locals and visitors alike. Currently in production is the creation of CD's featuring Villages' monthly Television Showcase of homes to hand out to visitors..with a lovely Canary Concierge Team cover!

What innovative ideas are you and your fellow associates working on to reach customers in creative ways?

Carla Reeves, CRS, Concierge Team Leader

Carla@SantaBarbaraDreams.com

http://SantaBarbaraTalk.blogspot.com

www.santabarbaradreams.com