Kathleen Barnato, CRS

Mark Schneipp, Director of the California Economic Forecast, and located in Santa Barbara California, recently sent his email newsletter for our review and consideration. The discussion was around the quesiton of how one might plan for the next 12 months. Does he have a crystal ball?

No, but many of us who were reading this missive felt that he not only has good news to share, but news that we by and large agree with.

If you are a potential home buyer: Buy now! Don't wait! We know that the inventory in the low end is defintely smaller than it has been all year and the prices are at an all time low. In my market, the low end is under $900,000 and well-priced properties are involved in multiple offer situations. Additionally, interest rates are at the lowest they have been for many years and the time to take advantage of them is when they are low, i.e., NOW You can't time that market!

The front page of the Los Angeles Times, October 21, stated:

The slowdown in foreclosures observed over the last 6 months is reducing the inventory of REO homes, enabling selling values to reflect more conventional home buying rather than distressed home sales. Values are rising. This will help voth real estate developers and real estate flippers. Wannabe home buyers should not wait a second more to buy their home.

We all know that Real estate is LOCAL and I am happy to share that our median price in Santa Barbara is now back up to a healthy $950,000 for the month of October, after falling to around $740,000 in months previous. Our low end is in recovery, and is the fastest selling segment of our market. Our upper end has had some good sales progress as well. (That's a subject for another blog!)

The stats I review tell me that the South coast Santa Barbara market is improving and most likely hit bottom in March of 2009. Our sales board tells me that our market is improving. My manager posted the % of improvement, dollar-volume wise, for our 140 agents from 2008 to 2009 incomes, and over half are having a better year than in 2008 and some by over 100%. We have had to work harder and smarter to earn our commissions and those of us who are still around, are that much wiser and seasoned to help the customers who ask for our help.

Kathleen Barnato - Realtor since 1988 - Santa Barbara California resident since 1974!

Prudential CA Realty www.kathleenbarnato.com 805-570-3366

Mark Schneipp, Director of the California Economic Forecast, and located in Santa Barbara California, recently sent his email newsletter for our review and consideration. The discussion was around the quesiton of how one might plan for the next 12 months. Does he have a crystal ball?

No, but many of us who were reading this missive felt that he not only has good news to share, but news that we by and large agree with.

If you are a potential home buyer: Buy now! Don't wait! We know that the inventory in the low end is defintely smaller than it has been all year and the prices are at an all time low. In my market, the low end is under $900,000 and well-priced properties are involved in multiple offer situations. Additionally, interest rates are at the lowest they have been for many years and the time to take advantage of them is when they are low, i.e., NOW You can't time that market!

The front page of the Los Angeles Times, October 21, stated:

The slowdown in foreclosures observed over the last 6 months is reducing the inventory of REO homes, enabling selling values to reflect more conventional home buying rather than distressed home sales. Values are rising. This will help voth real estate developers and real estate flippers. Wannabe home buyers should not wait a second more to buy their home.

We all know that Real estate is LOCAL and I am happy to share that our median price in Santa Barbara is now back up to a healthy $950,000 for the month of October, after falling to around $740,000 in months previous. Our low end is in recovery, and is the fastest selling segment of our market. Our upper end has had some good sales progress as well. (That's a subject for another blog!)

The stats I review tell me that the South coast Santa Barbara market is improving and most likely hit bottom in March of 2009. Our sales board tells me that our market is improving. My manager posted the % of improvement, dollar-volume wise, for our 140 agents from 2008 to 2009 incomes, and over half are having a better year than in 2008 and some by over 100%. We have had to work harder and smarter to earn our commissions and those of us who are still around, are that much wiser and seasoned to help the customers who ask for our help.

Kathleen Barnato - Realtor since 1988 - Santa Barbara California resident since 1974!

Prudential CA Realty www.kathleenbarnato.com 805-570-3366

The tide has turned in parts of the South Coast of Santa Barbara County California: In the low end, the market has all the signs of changing from a buyer's market, where there is a lot of inventory and few sales, to a seller's market, where there is limited inventory and an increase in sales activity.

With less than a 1.6 month's supply of homes priced under $900,000 (this is our low end), this is the least inventory available for sale in this price range anywhere in California. The number of homes for sale has more than doubled from 98 in July to 244 in August 2009, as sellers take advantage of the market. Even with more listings, there were 431 closings. Homes are being absorbed faster than they enter the market.

And I will mention low interest rates, again. They are at an all-time low - zero point conforming loans, with interest rates that are below 5% (LTV under $417,000). I t's time to go shopping, especially if you are a first time buyer trying to get that possible $8,000 home buyer tax credit. http://www.federalhousingtaxcredit.com/2009/home.html. It's time to consider refinancing, if you wish to lower your monthly payments.

For professional and confidential real estate assistance, please contact me - I'm here to help. Kathleen Barnato www.kathleenbarnato.com k@kathleenbarnato.com cell/text 805-570-3366 Prudential CA Realty, Serving the South Santa Barbara County area - Santa Barbara, Hope Ranch, Montecito, Goleta

Real estate is local but public perception seems to always be less than so. Perception becomes reality with enough news coverage in one direction or another. In my market, less than 4% of our inventory is REO business and this is almost exclusively in our low end of inventory. The mortgage news affects, however, a big part of our business, no matter what, even for those who are buying $2M plus properties, with only the first $1M of mortgage interest being tax deductible. Our sales are increasing, our REO inventory has multiple offers (my last one had 20 offers!) and those buyers who have been fence sitting for a while area realizing that while this may not be the "bottom of the market" for real estate value, it most likely is for interest rates! This is the story we have to continue to tell - buy in a market that you "know" - today's market you know the value of the property, and you know your interest rate as well. Mortgage rate timing is the most critical aspect of any transaction.

While reviewing the Forbes.com web site, I found an interesting article about Santa Barbara.

Best Cities For A Housing Recovery Matthew Woolsey, 08.13.09, 04:00 PM EDT ]

Increased transactions and relatively low foreclosure resales spell good news for these markets. "...key measures indicate that some metros are more on their way to recovery than others...where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest." Santa Barbara ranked in the top 10 for being one of the Best Cities for a Housing Recovery, coming in at number 9.

http://www.forbes.com/2009/08/13/recovery-cities-homes-lifestyle-real-estate-housing-recovery-cities.html

If you are waiting for the bottom of the market, our local stats show that might have been in February, around the same time the stock market appears to have bottomed out. Prices have been relatively flat since early March, and sales are brisk on entry level inventory. Even our high end has rebounded, as I wrote in my recent activerain.com/kbarnato blog: "Since January 2009, for properties priced $5MM and up, there have been 17 sales in south Santa Barbara county with 6 pending sales reported as of this writing. " (August 19).

Interest rates are still very good, with money available to those that qualify with the new loan parameters (which seem to change daily). Cash is king, and terrific values are definitely available. The first time home buyer tax credit of $8000 expires at the end of November. (http://www.federalhousingtaxcredit.com/2009/faq.php). If you need a contact person to discuss loans or the tax credit, let me know; I have several sources.

As always, I am available to you by email, cell or text, and appreciate your referrals for any real estate need. My listings, all open this weekend, various times and hosts:

737 E. Alamar $719,000, 2 bed, 1.5 bath in the San Roque neighborhood MLS 09-1137 http://www.imagemaker360.com/94752

1607 Payeras $895,000, 4 bed, 2 bath on the Mesa MLS 09-2882 www.1607payeras.com

3035 Hermosa Road, $1,580,000, Green built, wholehouse remodel, 4 beds, 3 baths, Samarkand neighborhood MLS 09-2831 www.30335hermosa.com