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.

It goes without saying that the person with the ability to grant or deny access to massive amounts of cash is a critical player on your team. Here again is where your relationships can pay off.

If you have never bought anything more substantial than a winter coat, it is time to hit the pavement. To be a star flipper, you need a friendly lender in your back pocket. Local banks are your best bet, as sellers frequently frown on offers from an out-of-town institution. That is not to say that you’ll never close a deal if you choose your sister-in-law in Hawaii as your financier. However, if yours is one of multiple offers, you want to do everything you can to make it as attractive as possible.
A quick word about money: A lender will take several factors into account (primarily your income, credit score, and the price and value of the property in question) to determine how much money you are eligible to borrow.

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According to Chicago Title Company “Real Estate Market Watch” Grant Deed Recordings for Resale’s during 2007 were up 3% in the Santa Ynez Valley, but in the other North County areas  Lompoc was down 31% and Santa Maria was down 22%. It is interesting to note that on a month to month comparison from the previous year (2006) the SYV equaled or surpassed the previous year 6 times, whereas Lompoc only exceeded 1 month and Santa Maria did not exceed any.

“If you don’t like the weather, wait a minute”…That’s a saying heard often in places where the weather can turn on a dime, making it very difficult to forecast. And while the weather patterns can change direction quickly, the recent movement of stocks and bonds rivals the rides at an amusement park.

“Turbulent” and “volatile” best describe the action in the markets. Stocks and bonds have had wild swings of late as the possibility of a recession loom. The Federal Reserve is concerned about a recession, but doesn’t want to cut rates too deeply because it may stoke the flames of inflation. In a speech last Thursday, Fed Chairman Ben Bernanke signaled the Fed will step in with interest rate cuts as necessary in an effort to prevent a full-blown recession from taking place. It sure looks like the Fed will break off a 50 basis point (1/2%) interest rate cut in its battle to fight a potential recession when the Fed next meets to determine monetary policy on January 30th.

But remember that because Fed rate cuts may add to inflation pressures, home loan rates may actually increase after a cut by the Fed. We have seen this type of chilly response to Fed cuts many times before. Just back in September, the Fed cut by 50 basis points, but home loan rates worsened by 0.25% in just 3 days!

THE MARKET ACTION SURE IS HEATING UP, BUT IT MAY BE TIME TO PUT A FREEZE ON YOUR CREDIT PROFILE TO STOP IDENTITY THEFT. FIND OUT IN THIS WEEK’S MORTGAGE MARKET VIEW!

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In today’s Buyers Market – overflowing with 11 months of home inventory - you cannot afford to list your property with an agent who isn’t willing or able to invest the time and money necessary to make your home stand out above the rest. You need a competitive edge, and an agent that can provide it through an aggressive marketing campaign.

Here are 10 simple questions that will help you pick the right agent for the job: (more…)

“THE BEST WAY TO APPRECIATE YOUR JOB IS TO IMAGINE YOURSELF WITHOUT ONE.” Oscar Wilde And unfortunately, last Friday’s Jobs Report indicated that many more Americans than expected are not just imagining themselves without a job, they truly are without a job.

The Unemployment Rate jumped up to 5.0% from 4.7%, and new job growth in December was reported at a paltry 18,000 jobs…with private-sector job growth actually falling by 13,000, the largest private sector drop in more than four years. And here’s an interesting note - Hourly Earnings actually moved higher than expected. While this seems somewhat contradictory to a slowing jobs number, perhaps it means that employers are attempting to save money by paying more dollars to fewer workers, rather than hiring more staff.

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What’s the weather like? A good question, but it also depends on where you are at the time. In the past week, we have seen flooding in the Northwest, blizzards on the East Coast, a drought in Georgia and a portion of the South, hot weather in the Southwest and mixed weather right here in Santa Barbara. The real estate market is just like the weather. It depends on where you are, but listening to the news media, it seems as though real estate is on its last leg. I am convinced that instead of reporting the news, the news media creates the news and shapes what we are supposed to think. The perception out there is that the entire housing market is crumbling, but that is simply not true. Real estate is local and what is happening in the Santa Barbara and surrounding areas is completely different than in many areas of California.

When I hear about the real estate market, I think of real estate from Carpinteria to Santa Barbara to the Santa Ynez Valley, as this is where my expertise is. And yes, the market may be slower than we would like it to be, but as of this date, more homes and condos have sold in 2007 than in 2006. When you compare it to so many other places in California or other areas of the United States, we are doing okay. In fact, in both Montecito and Hope Ranch, property values have increased at least 10% since last year. Santa Barbara is an incredible place to live with our climate, location, schools, and cultural activities, and these are reasons why people seek this lifestyle.

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