Santa Barbara Real Estate

This is an analysis of the Santa Barbara Real Estate market including Carpinteria/Summerland, Montecito, Hope Ranch, downtown Santa Barbara and Goleta through the month of April 2012. For the Home Estate/PUD market April marked the second month in a row that sales were at or above 100. The median sales price fell however from $835,000 in March to about $760,000 in April. The reason for the decline in that median sales price is that 70 of the 100 sales were below $1,000,000 with 43 of those sales coming in between $450,000 and $800,000. There were about 20 sales between $1 and $2 million but of those sales 10 were below $1.4 million. The above $2 million range accounted for 10 of those 100 sales with 2 of those 10 coming in above $5 million. 

Escrows continued to surge in April with about 145 Home Estate/PUDs starting the buying process. But, just like with sales, the median list price on those escrows slid from $816,750 in March to $789,000 in April. With the inventory way down and a substantial number of sales drawing multiple offers I would expect prices to start rising but at this point that phenomenon has not occurred.

Comparing the first 4 months of 2011 with the same period in 2012, sales are still up about 35% with escrows up about 45%.  The median & average sales prices are down however, falling about 3% with the inventory down about 25%. Year over year the Sales Price to Original Price ratio is right at 87% for both years and the days on the market of sold properties continues right around 75. 

Looking at the Districts, Carpinteria/Summerland sales are up from 22 to 27 and the median sales price is up from $617,500 to $737,500. The numbers of escrows are also up going from 27 to 32 with the median list price on those escrows rising from $737,000 last year to $849,000 this year.  

For Montecito, sales are up going from 45 to 64 with the median sales price dropping from $2.25 million last year to $1.824 million. Escrows are also up going from 64 to 89 but the median list price on those escrows is down from $2.617 million to $2.19 million.  

East of State St sales are up going from 62 in ’11 to 95 in ‘12 but the median sales price is down from $950,000 to $849,500. The escrows are also up going from 84 to 115 with the median list price on those escrows dropping from $977,500 last year to $887,000 this year.  

West of State St sales are up from 57 to 61 and the median sales price is up from $682,000 to $749,000. The numbers of escrows are also up with 62 in ’11 compared to 91 in ‘12 but the median list price on those escrows is down from $739,000 last year to $699,900 this year.  

Hope Ranch sales are down from 7 to 6 but the median sales price is up from $1.787 million to $1.82 million. The numbers of escrows are also down with 11 last year compared to 6 this year. But, the median list price on those escrows is up from $1.947 million in ’11 to $2.295 million in ‘12.  

Goleta South sales are up with 16 last year and 35 this year but the median sales price is down from $605,000 to $540,000. The numbers of escrows are also up from 25 to 53 with the median list price on those escrows rising from $575,000 to $579,000.  

Goleta North sales are up with 52 in ’11 and 66 in ’12 with the median sales price dropping from $699,000 to $612,500. The numbers of escrows are also up from 50 to 82 with the median list price on those escrows falling from $679,000 to $614,900. 

For the Condo segment of the market, after the 41 sales in the month of March we came back to earth in April with 28 closed escrows. The median sales price also slid a bit dropping from $406,000 in March to $400,000 in April and the numbers of escrows fell from 52 to 44 for the month. The median list price on those escrows also dropped going from $409,990 in March to $389,000 in April. With the overall inventory remaining down at around 100 available condos from Carpinteria to Goleta and all the escrows and sales with multiple offers I would expect prices to start edging up but so far that is not the case.

Looking at the Year over Year numbers, condo sales are up about 45% and escrows are up 95%. The median sales price is up minutely by .2% with the average sales price down approximately 9%.  But, the median list price on condos in escrows is up 3%. The Sales Price to Original List Price ratio is down slightly however from 90% to 89% and the Days on the Market for sold properties has risen a bit from 80 to 82. 

Looking at the Districts, Carpinteria/Summerland sales are down from 19 to 11 with the median sales price falling from $350,000 to $330,000. The numbers of escrows are also down from 22 last year to 17 this year and the median list price on those escrows is down from $359,900 to $354,500.

 Montecito condo sales are up with 5 in ’11 and 6 in ‘12 with the median sales price also up from $645,000 to $1,027,500.The numbers of escrows are up with 5 in ’11 and 10 in ‘12 while the median list price on those escrows is up from $1,195,000 in ’11 to $1,222,500 in ‘12.

East of State St sales are up from 11 to 30 with the median sales price rising from $420,000 to $465,040. The numbers of escrows are also up going from 12 to 61 with the median list price on those escrows falling from $601,000 last year to $599,000 this year.

West of State St sales are up from 13 to 25 with the median sales price falling from $425,000 to $400,000. The escrows are up from 22 to 35 with the median list price on those escrows falling from $424,500 to $350,050.

Goleta South sales are down from 18 to 17 with the median sales price also down from $369,000 to $258,000. The numbers of escrows are up however with 19 in ’11 and 25 in ‘12 but the median list price on those escrows is down from $375,950 last year to $264,900 this year.

Goleta North sales are up from 9 to 14 with the median sales price down from $375,000 to $333,750. The escrows are also up from 12 to 25 with the median list price on those escrows falling from $379,000 to $365,500.

 Starting quarter two, sales and escrows remain strong for both Single Family Dwellings and Condos and inventories remain low with about 400 Homes and 100 Condos currently on the market. Despite a substantial number of multiple offers occurring for both condos and homes very few of those offers have been for over the asking price. In fact, the median sales price for both segments continues to increment down.  At some point, if the inventories remain low and demand continues high I would think the basic law of supply and demand would kick in but at this point that is not the case.

Although they can be stated in different ways there are only six factors that affect the sale of a home.

It is important for you, as the seller, to understand who or what has control over them and how they impact on each other.

• You control 3 of the 6
• The Market controls 2 of the 6
• Your REALTOR® controls 1 of the 6

2. Terms – Buyers have requirements just as sellers do. Your willingness to respect them and be willing to negotiate which terms will be acceptable to both parties can have a very positive impact. Price and Terms will usually be negotiated at the same time.

3. Condition – How well you have maintained the home will influence both your price and length of time to sell. The pool of buyers who are willing to make major repairs is much

* Stop reading now if you are even remotely humor impaired or comedically challenged!

Yesterday’s man or woman used to think, “if I need to find someone this way, I’m already lost!” But today, someone might say, ” I don’t have enough time to drive around and look at all the open houses/a potential homebuyer’s version of “speed dating”, so maybe I can use this service!”

We’ve all seen those ads for E-Harmony – where this scary looking guy comes out and tells us how great his dating service is, and then tries to convince us that it’s all scientific, and that people are matched on 92 points of compatibility! Yeah, right … E-Harmony people are just regular folks like yourself, not circus freaks, drooling sexual perverts, or couch humping Scientologists. (Perish the thought) The product of your union wil be an “Everlasting Love!”, not some head revolving, vomit spewing, bed wetting, priest cursing, ungrateful devil child, that you’ll have to support till you’re 18. (okay, maybe I have some issues) But … if you’re still a hopeless romantic, a word of advice … look beyond the curb appeal! Speaking of which … matchmaking and the promise of finding that perfect property is also here today!

No doubt every prospective buyer, seller, and real estate agent has heard of the Multiple Listing Service. The real estate agent’s “on the make” equivalent of a dating service. Real estate agents even have their own codes to help inform potential suitors. Possibly E-Harmony might want to implement this kind of methodology, as you’ll soon see, into their 92 reasons to run for the hills! (The following is gender specific … feel free to substitute whatever gender makes this PC for you … or not!)

*New: A new listing! The competition will be lining up for the first dance! A new listing has that “special glow!” … for now.

*Active: Active listing. This gals has been danced around, but so far, no one wants to marry her.

*DOM: Days on the Market. Everyone watches this number, like the date on a milk carton. It is an indication of freshness. The longer she sits on the shelf, the less desirable she becomes.

*CC: Contingent, but continue to show. She says she’s engaged, but there’s no ring on her finger – the “due diligence period.” The wedding may still be called off, especially if the finances don’t measure up!

*BOM: Back on the market. ewww…something could be wrong here. Definitely not a first choice. But if it’s 2a.m., and you’re drunk out of your skull and getting desperate, she might look pretty good. Of course, you may have to overlook that little hump, the lazy eye, and her spooky resemblence to Karl Malden.

*TW: Temporarily withdrawn. She’s not pretty, and she knows it. She realizes that if she wants more interest, she’s gonna have to get a face lift, fix herself up, start going to the gym, and maybe buy a wonder bra.

*EXPIRED: Listed, but never sells. She thinks she’s Paris Hilton, but she looks more like Yoda after a night of heavy drinking.

*PENDING: Okay, she’s bought the dress, had the rehearsal dinner, picked out the china pattern, and the wedding march has started. Potentially the groom can still back out and run screaming up the aisle. (Of course, such things usually only happen in the movies … still, there’s always the chance.)

*SOLD: They’re married! Happily? Who cares!? It’s re-harmony! (Cue music) ” This will be an everlasting love …”That is, till he discovers that she has a raging case of dry rot in her basement, terminal fung sway, and a sagging back porch.

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal: Why It’s Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy. Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home. Here is some information to consider.

Interest Rates

Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards

The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

1. The qualification process for loans will become more difficult
2. The cost of a loan will increase

Bottom Line

There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

If you’re thinking of buying or selling a home here in Santa Barbara contact Mark Lomas at 805.845.2888 cell or email Mark at HomesOfSantaBarbara@gmail.com

For the comedically challenged and humor impaired this post is not recommended. But for those of you a little more daring… here we go with a little real estate humor:
* Sign next to FSBO (For Sale By Owner): We shoot every third agent, and the 2nd one just left!
* This house has every new convienence, except low payments!
* By the time you pay for a house in the suburbs, it isn’t.
* If you think no one cares that you’re alive, try missing a couple of mortgage payments!
* I just listed a maintenence free house, in the last 25 years there hasn’t been any maintenence!
* I never understood why my Realtor was always smiling? I didn’t think anybody could have that many teeth without being a barracuda!
(No offense to any professionals out there on the front lines)

What do Real Estate agents do to earn their commission ? Ever heard that question? Here’s a comprehensive and humorous take on that very question from a Home Inspector who’s worked closely with Real Estate practitioners. “They don’t do @*!?&% thing! Why they just stick a sign in the yard and make easy money. I could do their job any day of the week.” Well, maybe you could do their job. But it just won’t be any day of the week. And if you intend to be successful at it (which means satisfying a bunch of clients, mortgage lenders, appraisers, and countless other associates), it will probably be EVERY DAY of the week as well as most nights, weekends, holidays, anniversaries, special occasions, sick days, snow days, and unpaid vacation days. Understood, there are Real Estate agents, and then there are good Real Estate agents. Just like Doctors, Lawyers, and Indian Chiefs. This article is about the good ones. The ones who go to work before,during, and after the times mentioned above. To serve their clients and stay competitive in their profession, today’s Real Estate agent are expected, assumed, requested, required, and or demanded to perform, be knowledgeable of or have access to the following: Information Brokerage Services, Multiple Listing Services, tax rate adviser, appraiser, mortgage lender,financial planner, legal expert, credit counselor, city planner (fortune teller),building inspector, chauffeur, shuttle service, travel agent, tour guide, delivery boy, order taker, public relations expert, therapist,marriage counselor, family doctor, nurse, baby sitter, advertising executive, general contractor, construction estimator and superintendent, and multi-talented subcontractor (not excluding locksmith, yard man, maintenance man, garbage man, plumber, electrician, decoder scientist for alarm systems and programmable thermostats). They’re often perceived as the bad guy when interest rates go up and the bad guy when your house doesn’t sell by 10am the next day. It’s helpful if their talents include being a diplomat, a negotiator, a referee (similar to those used in Roller Derby and Monday Night Wrestling) and, in general, a walking bureau of information for everything about anything – including whose check is good and whose wife or husband isn’t. They must know about schools, churches, governments, public utilities, crime rates, world affairs, this weeks jail term for this weeks Environmental Protection Agency violations, future developments that no one has ever dreamed up yet, transportation, shopping, day care, soccer, T-ball,how many termites it takes to eat a house, every homeowners association formed since 12 BC and what kind of fences they don’t allow, should you water and fertilize the Bermuda grass before, during, or after mowing, the best place in town to buy pizza, if you can buy beer on Sundays, and at least two dozen other skills and talents that I don’t have room to mention. So, be nice to your broker/agent. Next time you start thinking. “They have it so easy”, go spend a day with them. You’ll soon realize that, like most of us, they work hard for their money, and your satisfaction really is important to them.Mark Lomas

What could be more innocent then going on-line and looking at homes for sale? The San Francisco Chronicle calls it the new pornography (Pornography leads in most web site hits followed by Real Estate) , a delicious way to waste away in Computerville! All these intimate photos of multi-million dollar homes and virtual tours. How fun is this? It’s all so simple and easy! Maybe not. You saw an ad on television or received a harmless looking email offering you property information by going to their web site. Which is a reasonable offering, unless of course, you have to provide any personal information. Once you’ve provided your address, phone number, or email your in the “system”. Don’t be surprised if your inundated with emails, snail mail, and phone calls while your having dinner. What happened? The back side of this is that your information is being sold to realtors, mortgage brokers, moving companies and anyone else remotely related to Read Estate that can use your personal information towards their own ends. Without subscribing to any of these web sites ,I receive no less than 10 emails a day that one of these web sites has “bona fide” leads for prospective buyer and sellers … for a price.

Journalist Carol Lloyd of the San Francisco Chronicle (Surreal Estate column in the Chronicle/Examiners Sunday Real Estate section) addressed this in an article titled “An Innocent E-mail is Bait in the Trap”. ” A lot of controversy has swirled around these models. For instance, real estate agents aren’t particularly happy with the notion that the MLS, arguably the industry’s most valuable asset, is being given away by a third party like Homegain.com, Zillow, and Trulia only to make money off the real estate agents who created the MLS in the first place. Among local real estate agents I spoke to, the whole lead generation industry has a less than stellar reputation. After going public on the Nasdaq, Housevalues.com was valued at more than $300 million dollars.” How did the National Association of Realtors and the California Association of Realtors allow this to happen and continue to? The model agreed to with NAR has not been honored by these 3rd party data vultures.

Care to bypass these web sites?

Realtor.com is the number one property search web site in the country. In the greater California GreatHomes.org is also a very popular web site for property searches without having to provide any personal information. And, if you already have a relationship with an agent, they can provide you with this information from their personal or company’s web site ,which I feel, is far superior to Realtor.com or GreatHomes.org.

Homevalues.com, Zillow, Trulia, LendingTree.com, RealEstate.com, JustListed.com, Homegain.com, ValueMyHouse.com, Reply.com, and SubmitSolution.com are just a few of the companies that offer to provide property information ,but there is a caveat, your personal information will be sold.

Consumer Beware! Your name, address, credit score, and even 7 digits of your social security number can be sold to a credit bureau immediately upon receiving an inquiry. Under the Fair Credit Reporting Act, Equifax, Experian,Innovis and Transunion are permitted to include an enormous amount of your consumer information on databases they sell. This information can be sold immediately to any business willing to pay for it. Are you comfortable with that? As identity theft is quickly becoming one of the most common crimes in our country, we should all be concerned. Here is information that can help you avoid having your private consumer information sold: The only way to avoid the sale of your personal information is to officially OPT-OUT by visiting www.optoutprescreen.com and following the instructions to do so. When you get to the web site you will have 3 choices. 1.opt-in to the program (if you previously opted out, you can opt in), 2.opt-out for a period of 5 years, or 3. opt-out permanently. The website is maintained by the credit bureaus and has a “sales pitch” giving you all the reasons why you shouldn’t opt-out, but you can and should, if you do not want to have your consumer information sold.

And, if you’d like, this web site offers you the ability to search property listings WITHOUT having to register. If you’d like email updates on properties ,then you will have to register. But, your information will not be sold to anyone.

Mark Lomas

This web site is in construction mode, and should be fully up and running by June 1, 2012

Here you’ll find:

1.Access to the MLS for Santa Barbara and surrounding neighborhoods . No registration required.

2.”Live Statistics”  (In Real Time!)  Bringing new real estate technologies to Santa Barbara Real Estate

3. A place where you will always get the latest news as to what’s going on with “Todays Santa Barbara Real Estate Market”

4. Static statistics that will demonstrate what the current ”Pulse” of this market is

5. Opinion pieces and Humorous article