I bought my house in 1995 for a little over $350,000. Being in the business, I thought that I had made a good deal, but within 6 months, I think my house was worth around $25,000 less and I felt pretty sick. Today, 13 years later, my home is worth over $1,100,000, three times what I paid for it and I now I know that I made the right decision. In fact, when looking back, even if I would have paid $400,000 ($50,000 more than what it was worth), it would have been a smart purchase. You see, many of my clients ask me, when is the best time to buy a home considering what the market is like right now.

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All real estate is local! “South County” real estate is doing very nicely thank you! With only 40 foreclosures total on the South Coast in the whole of 2007, there is no tipping point here to bring values down any further. (Those foreclosures have, for the most part, been purchased, not sitting unsold as is happening in other locales.) Indeed, only 2 local areas have had downturns in their median prices over the past 3-4 years: Carpinteria and Goleta, both down around 15%. Santa Barbara’s median price has remained steady for 3 years at $1,015,000-$1,050,000 and Montecito has enjoyed a “non-downturn” adding around10% to its median price each year for the past 4 years.
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In the past 30 days we have seen more activity in the market than in the past few months.  116 residential properties have gone into escrow leaving about a 6 month supply of homes for other buyers.  This is a significant reduction in inventory over the last few months.  What does this mean to buyers?  It means the time to act is now if you want to have negotiating power on your side.

Pertinent information from Speaker of the House, Nancy Pelosi, delivered by our Santa Barbara Multiple Listing Service: A bill likely to raise the conforming loan amount from $417,000 to $729,000 is due to be signed into law today!!!

This is even more good financial news for folks looking for an opportunity to buy a home in today’s market!!
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“CUTS LIKE A KNIFE, BUT IT FEELS SO RIGHT” Bryan Adams And financial pros will tell you it’s wise to never try and catch a falling knife. Seems like decent advice in general - but in the financial world, it means that when the price of a Stock or Bond is in the midst of a severe decline, be very cautious about stepping in to buy…even if it feels so right because the price starts to look cheap. That’s because when prices declines sharply, it often gets even worse, making it hard to call the bottom. That’s why many investors, who attempt to buy on the way down, say the feeling cuts like a knife. And over the past week - Bonds have been dropping much like a knife, and home loan rates have risen by about .25% across the board.

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Village Properties is the exclusive affiliate in the Santa Barbara area for Christie’s Great Estates. Recently Christie’s released a report that surveyed the real estate market in multiple regions of the United States. As Christie’s GE exclusive affiliate, we’ve reprinted that survey here for your benefit. It provides an interesting picture of the national market. Enjoy. (more…)

With so much confusion, fear & doubt in the media concerning the real estate market Warren Buffett brings us back to reality with his statement, “all real estate is local.”  The market from Carpinteria to Goleta is very good compared to the rest of the nation.  We are selling 2-3 homes a day with 1 buyer to 9 sellers.  Since interest rates are extremely low, inventory is plentiful are you beginning to see the opportunity like I do for you who are looking to own for the first time, downsize or get your next larger home? Let’s talk about all your options today.

“A GOOD CONSPIRACY IS UNPROVABLE. I MEAN, IF YOU CAN PROVE IT, IT MEANS THEY SCREWED UP SOMEWHERE ALONG THE LINE.” Mel Gibson as Jerry Fletcher in the movie, “Conspiracy Theory” And those who believe in the conspiracy theory that the Fed has access to economic data in advance of the official release dates sure felt their position was proven correct last week…let’s take a look.

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“COMMEND A FOOL FOR HIS WIT, OR A ROGUE FOR HIS HONESTY, AND HE WILL RECEIVE YOU INTO HIS FAVOUR.” Henry Fielding So honestly - was “rogue trader” Jerome Kerviel really solely responsible for costing French Bank Societe Generale $7.1 Billion Dollars…and for helping to trigger last week’s massive sell-off in global Stock markets? Or is the junior trader being played a fool, becoming the scapegoat to cover up financial mismanagement by the bank itself?

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REO stands for Real Estate Owned. It is a term banks use for property they have acquired through the foreclosure process. In California the foreclosure process takes about 4 months, and is usually initiated by the bank after a monthly payment or two is delinquent. When the foreclosure sale occurs, the opening bid is what is owed to the bank, which includes the original loan plus missed payments, late charges and penalties, foreclosure costs, taxes and more. The person who wants to buy the foreclosure property at this sale auction must have all cash (or cashier’s checks). The opening bid is often more than the current market value. Usually the property goes back to the bank and becomes an REO. Generally it is then listed on the open market and competes with other properties for sale.