Refinancing your home was definetely at the center of the economic party a couple of years ago. Not any more, the number of refinances in the Santa Barbara area has slowed to a trickle. I am going to have to change the way I format my chart pretty soon, because in some areas the number of purchase loans is outnumbering the amount of refinance loans being done in a given month. The Santa Barbara, Goleta, Carpinteria, Montecito areas haven't quite seen the number drop that far yet, but it is the lowest it has been in years. A year ago, all I kept hearing was that this year could possibly end up being one of the biggest refinance markets we would ever see. The folks predicting this were seeing the huge number of loans that were going to be adjusting and determining that they would all refi... 08/28/2008

When looking at the Santa Maria California and Orcutt California market overall, currently there are approximately 700 homes on the market, and approximately 60% of single family homes and condos are either short sales (sometimes referred to as pre-foreclosures) or bank-owned properties (REOs).  And, in the past 30 days, approximately 130 single family homes have closed escrow, and about 60% of those were REOs, and around 15% were short sales. Contrast that with the luxury and executive home market where there are only about 50 homes priced above $500,000 or more in the Santa Maria California and Orcutt California market, and only 20% of them are short sales or REOs.  The executive and luxury home market consists mostly of homes in the Orcutt area and includes developments such as Elkho... 08/17/2008

I was so intrigued with what I found last week that I decided to take a tour of some of these Santa Maria homes to see just what condition they are in, where they are located, etc. I also spoke to our loan department for more information on what sort of credit and income is necessary to purchase one of these bargains.The good news is that if you find a $200,000 home you like, you need only a $30,000 annual income and a credit score of 720 or above to qualify for conventional financing (30-year fixed-rate loan). Rates vary depending on how much of a down payment you make, your credit score, etc. FHA financing is also available, with easier quaifying requirements and a lower down payment.Now for the homes. I cherry-picked six houses or condos in pleasant neighborhoods, that required less ... 08/09/2008

River Oaks is a community located northeast Santa Maria near Hwy 101 and north of Donovan Road.  The community boasts 400 plus homes built between 2000 and 2003.  This thriving community borders the Santa Maria River and offers a local park, elementary school, walking trails, a lake, close proximately to Marion Medical Center, Allan Hancock College, shopping and easy freeway access.  As of 8/7/08, list prices of active homes range from $265,000 to $589,000.   River Oaks has not been immune to the market slowdown and  the information gathered is gathered from the central coast MLS as of 8/7/08: As of 8/7/08, a look at active, canceled, pending, and sold properties in Riveroaks. Active listings (currently on the market) 22 homes.  Average price $329,373, Average days on the market 127, Av... 08/06/2008

  Riveroaks is a newer community located in northeast Santa Maria, CA built between 2000 and 2003.  The diverse community boast over 400 homes, made up of five models starting with plan one - one story, 3 bedrooms 2 baths and 1400 plus square feet, up to the largest model, plan four - two story, 4-5 bedrooms 2-3 bathrooms and 2500 plus square feet.    The community offers nice walking trails around the westerns and northern perimeter and an elevated walking trail bordering the Santa Maria River.  The community has a community park(Riveroaks Park) with a gazebo, large grass area, children play area, public restroom, and barbecue area located next to a beautiful lake.  Another community value is Taylor Elementary School hosting grades K to 6.   One of my favorite community conveniences i... 08/06/2008

There is nothing unusual about June's list of REO's. They are spread out throughout the county just as you would suspect. There were 11 properties between Carpinteria and Goleta. The Santa Maria area had the largest number with 106. Lompoc had 32. The rest of the the properties taken back by the banks were scattered among Santa Ynez, Solvang, Guadalupe, & Buellton. In reviewing the loan amounts you can see that most of the properties had loan amounts under $500,000. There were 2 properties whose loan amounts were over $1,000,000 and they were both in Santa Barbara. The list of lenders wouldn't surprise you either. All the major players are represented with multiple properties on the list. A couple of the lenders that have been in the news most recently like IndyMac and Countrywide are c... 07/25/2008

Looking for fresh, local products?  Look for a farmers market in your area. Sunday  Nipomo, 11:30AM to 2:30PM across from the post office on Tefft Street.  also potted herbs, home-baked breads and weekly barbecue. Tuesday  Old Town Santa Barbara, 4 to 7:30 PM, 500 to 600 blocks of State St, also small plants, specialty items and street musicians. Orcutt - Central City Farmers Market, 10AM to 1PM, Oak Knoll South, corner of Bradley Road and Clark Avenue; also fresh honey and eggs. Wednesday  Arroyo Grande, 8:30AM to 11:30AM, Spencer's Fresh Market, 1454 E. Grand Ave. Santa Barbara, 2PM to 6PM, 110 S. Hope(in La Cumbre Plaze). Santa Maria - Central City Farmers Market, 12PM to 4PM Town Center West(in the Mervyn's parking lot). Solvang - 4PM to 7PM, Copenhagen Dr. and 1st St, marketing wit... 07/09/2008

Short sales dominate the Santa Maria and Orcutt CA market. Simply put, short sales are sales where the owner owes more than the house is currently worth. Currently, 50% of the active listings in Santa Maria and Orcutt are short sales. However, 60% of the homes sold in the past 30 days are bank owned homes (REOs), and only 10% of sold homes in the last month were short sales.* Many homeowners ask -- why the disparity? Or, is a short sale a real possibility for me? Now certainly, those figures have something to do with the inherent difficulty of a short sale. Short sales are a marathon, not a sprint. And one of the most important decisions you will make as a homeowner short selling in this environment is the agent you employ. However, I continue to believe that selling your house as a sho... 07/06/2008

I know this may sound funny to many of you but Santa Barbara County does have a low end, or affordable market. That market is in the northern part of our county and mainly consists of 2 communites, Santa Maria and Lompoc. Both of these communities are seeing increased activity. If you compare May of this year with May of last year, Lompoc was up 24% in the number of sales and Santa Maria was up 33%. What I'm wanting to know is are other people across the country experiencing the same types of increases in the number of sales in the affordable markets. What is happening in these markets to create this increase in sales? I am suspecting that some investors are getting back in to the market. I am also seeing that the bank owned properties that have driven down the prices are beginning to s... 06/20/2008

Is the cost of gasoline getting you down? Are you worried about rising food prices? If you find these things disturbing, then you're going to be real upset about the potential increase in home insurance cost due to the decertification of the Santa Maria River Levee. How much can flood insurance cost? Some Santa Maria residents face a potential increase of $5,481.00 per year!  HISTORY:  The city of Santa Maria has a history of flooding. To address this problem, the Feds had the US Army Corps of Engineers build the Santa Maria River Levee. The Levee was completed in 1963. The Levee was suppose to be able to control a flow of 150,000 cubic feet per second. That is almost double the anticipated flow from the predicted 100 year flood. In 1969, the levee almost breached.  In 1998 the levee su... 06/18/2008

From reality shows about flipping homes to infomercials that promise you’ll get rich quick, the message is the same: Buying a home that is facing foreclosure (also know as a "short sale") is a sure way to financial security. However, considering all the hype surrounding short sales, it’s important to separate the facts from the fairy tales. There are some important points to consider before you waste alot of time chasing after these deals. What Exactly is a "Short Sale"? It’s when the bank agrees to accept a discounted payoff when a property sells for less than what is owed on it. Here’s how a home usually ends up in this category: When a homeowner stops making the mortgage payment, he eventually receives a notice of default from the bank that threatens foreclosure proceedings if the de... 05/23/2008

The north part of Santa Barbara County has not seen any real improvement in the number of sales in a long time. Last month that all changed. Santa Maria absolutely exploded! There were 134 transactions reported by CORT. That is a 54% increase in the number of sales from March. It is almost a 60% increase from April of 2007. I can hardly contain myself when I see that number. To see a market have this much activity when it has had such hard times for so long is very exciting. I can only hope it is a trend and not some sort of strange aberration. The news about Lompoc isn't quite as exciting, but none the less it is hanging in there. There were 42 transactions reported compared to 45 in March. Not a big difference, but if you look at the chart Lompoc saw a nice sized increase in their tra... 05/16/2008

The Santa Maria Area sales map is up and viewable for March. This map will show all the property sales in that area reported by CORT. This includes Condos, Homes, Vacant Land, Commercial Property, and any other land transfer. The maps for Santa Maria, Santa Barbara, and the Lompoc area are always available on the right hand side of my Lawyers Title blog for future reference. There are 105 properties located on the map, with the highest sales price being 2.4 million on McCoy Lane in Santa Maria. That looks to be a sizable piece of land. The next 2 highest priced sales also appeared to be land. $2,150,000 The Sal Beach area in Guadalupe and $1,579,500 on La Brea in Santa Maria. The lowest price reported by CORT is 408 S. Smith St. for $5,665. You are going to have to figure out what that ... 04/14/2008

Santa Maria / Orcutt Area Market SurveySummary  3/29/08 ACTIVE REO PROPERTIES Listings as of 03/29/08 at 3:56pmProperty Type  Residential    Property Subtype  SFR Stick Built   City  Santa Maria-Orcutt Status  Active Listing Detail  REOActiveListing Price Range Quantity     Average DOM $140,000 thru $159,9992164 $160,000 thru $179,999253 $180,000 thru $199,999966 $200,000 thru $249,9993047 $250,000 thru $299,9993577 $300,000 thru $349,9992782 $350,000 thru $399,9991369 $400,000 thru $449,9992110 $550,000 thru $599,99914  12170  Summary Price InformationMinimum $159,900Maximum $566,900Average $283,518Median $279,900Equal Opportunity Housing * All information deemed reliable, but not guaranteed.Information has not been verified, is not guaranteed, and is subject to change. Copyright 2008 ... 03/29/2008

SANTA MARIA / ORCUTT MARKET SNAPSHOT SOLD REO PROPERTIES MARCH 29, 2008 Active: 0 Pending: 0 Sold: 98 Other: 0 Total: 98  Bedrooms Bathrooms Square Feet List Price Selling Price Days on Market Minimum 2  1.00  800  $179,900  $125,000  2  Average 3  2.24  1,618  $307,256  $656,173  53  Median 3  2.00  1,470  $303,750  $300,500   27  Maximum 5  4.00  3,400  $630,500  $35,500,000  353  Total Dollar Value      $64,304,927   Average DOM Breakdown and Average % of List Price received on Solds by Market time:  0-30 Days  31-60 Days  61-90 Days  91-120 Days  120+ Days  No. of Listings  51   16   11   9   11  Breakdown %  52.04   16.33   11.22   9.18   11.22  Avg % SP/LP 317.44   96.54   94.92   96.11   91.69  INTERPRETATION: The information above is gathered from central coast MLS statistic on ... 03/29/2008

With home prices trending downward and steep decrease in home prices I am certain many are at least considering purchasing a bank owned property (REO).  If you are new to purchasing REO properties there are important things to think about before you make a decision.  One important rule of negotiation is obtaining information to make a wise decision.  Assuming you are new in purchasing, allow me to offer some suggestions to make a wiser investment or purchase decision.First, find out your financial abilities by seeking a qualified, competent loan officer to help you get your financial matter in order.  In a buyer's market, those pre-approved command an advantage.  The ability of a buyer to prove purchasing clout and a fast escrow closing helps favors an accepted offer. Second, a qualifie... 03/28/2008

During these financially challenging times finding ways to stretch our income is imperative.  To help off set increase cost of living, I suggest the following 32 listed items to save money.  Ride your bike or take the bus to work instead of drivingPack a lunch to work instead of eating outDecrease or eliminate Starbuck's coffee.Inflate your car tires to proper tire pressure to maximize mileageLessen the weight of your car by taking unnecessary items improving mileageDriving slower and avoiding quick starts and stops will increase mileage performanceWear a sweater instead and bundle up instead of increasing your thermostatPurchase clothing at discount stores like Ross, Wal-Mart, and Marshall'sDine out sparingly and split a meal with someone, order water instead of coffee or soft drinkRec... 03/28/2008

With all the news surrounding the current market it is easy to speculate about timing a home purchase.  Assuming you are in a position to purchase a residence, understanding market trends is prudent.  In every market, there is a cycle, and at any given time, the market is either going up or down on this cycle.  In recent times, we have experienced a seller's market and prices appreciated in double digits placing an upward pressure on home price and sales.  Right now, the market favors buyers and prices continue to push downward.  This decline in price value is influence by a saturated housing inventory, stricter credit standards, increase in default loans and increases in REO(Bank Owned Properties) and short sales.  So one ask.  Is this a good time to buy?  The window of opportunity is ... 03/28/2008

Like much of the county, including California, foreclosed(REO) properties continues to affect the housing market,  Market dynamics continues as more REO's enter the market and affect both home prices and sales.   Based on numbers from sorted by Assessor's Parcel Numbers shows a sharp increase in sold REO properties from the same time last year.  For example, in January 2007, sales produced 2 REO sales; in January 2008 REO sales increased 37.  February 2007 sales produced 2 REO sales; February 2008 sales were 53.  The percentage from January 2008 to February 2008 REO sales, a 43% increase in REO sales in one month.  Sales trends of REO sales will most likely grow as adjustable loans adjust this year and high inventories continue to place downward pressure on home prices.     REO sales co... 03/28/2008

A little while back I promised to write an entry on buying short sales. I have many clients who have the notion that they want to buy their next or first home this way, and these days my first conversation with potential buyers always includes a discussion of these types of sales. Last time I took a peek, there were approximate 800 single family home listings in the Santa Maria area, and about 40% of them were short sales or at least potential short sales. So, the current market for homes in Santa Maria and Orcutt is inundated with these listings.First things first. What is a short sale? A short sale listing is one in which the owner owes more on their loan than their house is currently worth. And, due to any number of factors, they are trying to sell their home. Many of the current sho... 03/09/2008