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Will the Double Dip in Housing Spread to the General Economy?
Santa Barbara Real Estate Economic Update | Zia Group
Housing remains reclusive despite the lowest mortgage rates in 2011:
The most recent information on U.S. housing market is that prices for homes nationwide continue to decline, and are now at the lowest levels in 9 years. At the same time, fixed mortgage rates slid for the seventh consecutive week, but the lowest rates of the year have done little to lift the struggling housing market. Mortgage rates track in nearly lockstep fashion the yield on the 10-year Treasury note, which has decline over fears that the economic rebound is floundering (again) and the economy is slowing down.
Reasons abound but higher energy prices are the principal reason given by talking heads on TV. Other explanation involved Tsunamis, Libya, Tornados, and Charlie Sheen.
Despite the lowest mortgage rates for the calendar year, most people are unable to take advantage of them because they can’t meet tougher lending requirements. And those who could afford to refinance likely did so last year, when rates fell to the lowest levels since the 1950′s.
Sales of new and previously occupied homes rose in April. But sales are well below healthy levels for the nation as a whole, in California, and in Ventura and Santa Barbara Counties. Waves of foreclosures have pushed prices down. Furthermore, an increasing pool of would-be home buyers are postponing their purchase, worried that homes prices have yet to hit bottom.
That said, Don’t Worry About SANTA BARBARA Housing Prices
Though U.S. aggregate home prices still appear to be falling, real estate is a regional issue, not a national one. There is not much change in housing values locally though the median price for this year is slightly lower than last year.
Santa Barbara Real Estate Economic Update | Zia Group
In Ventura County, the median selling value is about 3.5 percent lower. In Southern Santa Barbara County, prices are off only about 1 percent.
Prices are expected to remain flat until the glut of foreclosures for sale is reduced, firms start hiring in greater force, banks ease lending rules and the sense of urgency pushes more people to buy a house. In some markets, that could take years. In California, the recovery in housing is scheduled for this year because the average household size is at record levels and job creation is ramping up now.
Don’t Worry About the Stock Market
Yes, I know the Dow Jones Industrial Average has declined 4.8 percent since May 1st. But don’t worry. The June swoon is on. It’s more a typical or even traditional Wall Street correction after a huge bull run than the beginning of another crisis.
Granted however, the May jobs report was disappointing, with the private sector creating just 83,000 jobs (following stellar reports in February, March, and April). The report follows several other weak economic reports over the last week, prompting newspapers and TV commentators to suggest the possibility of a double dip recession.
General economic growth may experience a respite now but that’s not uncommon. There are few fundamental reasons why the economy would stall. Faster growth is slated for the rest of the year, including the creation of jobs and improvement in the housing markets as a result.
Santa Barbara Real Estate Economic Update | Zia Group
Update on New Loan Limits (Susan Schniepp and Kelly Marsh)
Barring Congressional action, Federal Housing Administration (FHA) loan limits will revert back to loan limits determined under the Housing and Economic Recovery Act (HERA) for loans insured by FHA on or after October 1, 2011. As a result, FHA loan limits will likely decline in nearly all California counties. The potential new loan limits for local areas are as follows:
Santa Barbara would be reduced from $729,750 to $625,500 and Ventura would be reduced from $729,750 to $598,000.
(A big thank you to Kelly Marsh with Broad View Mortgage and local economist Mark Shneipp for this information).
Do you have specific questions about the Santa Barbara real estate market? Contact Daniel Zia and the Zia Group team by email (Daniel@ZiaGroup.com), phone (805-637-7148), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Santa Barbara MLS and set up a customized email-based home search for you to track Hope Ranch and other Santa Barbara properties at your leisure. Thank you for visiting the Santa Barbara Real Estate blog and we look forward to serving you and your real estate needs.
Homes Santa Barbara | April 2011 | Goleta, California
The city of Goleta is located directly north of Santa Barbara and is a popular alternative for purchasing homes Santa Barbara in downtown Santa Barbara. Good schools, larger homes, an excellent business community, and relatively close proximity to downtown Santa Barbara make Goleta a draw for a variety of home buyers. Goleta home buyers tend to receive more house (interior square footage, larger backyards, easier parking) for their dollar as compared to living downtown and are close to major shopping centers. Goleta was incorporated into city hood in 2002 and is growing. Find more information on the City of Goleta’s website here.
Homes Santa Barbara
The Goleta area continues to be an active market with a large inventory with a variety of homes Santa Barbara home buyers are currently viewing. If you’re interested in Goleta REOs, contact us for a bi-monthly update of all homes Santa Barbara and Goleta has classified as REO properties. For prospective Goleta buyers looking into the area, here is a summary and link to market activity for the area:
Goleta Homes Santa Barbara Sold: During the month of April, sixteen homes Santa Barbara mls shows in Goleta as closed, and they range in price from this lovely condo selling for $268,000 (33 Dearborn Place, Santa Barbara, California 93117) to this contemporary architecture masterpiece located off of Cathedral Oaks Road, selling for just under $2 million at $1,942,375.
Search all current homes Santa Barbara in Goleta with our free MLS search tool on our Santa Barbara website using our free MLS search tool.
Homes Santa Barbara
Active Goleta Homes Santa Barbara: With over 200 listings on the current real estate market in Goleta, California, choosing which welcoming and beautiful home to showcase to you was a challenge but to think of you missing the opportunity of viewing this Cathedral Oaks Estates home in the esteemed Foothill School District is unthinkable. With 2,551 square feet, this Ranch style, one owner home has custom finishes and remodeled kitchen and bath, cathedral ceilings and inviting and beautifully landscaped yard. Priced at $1,399,000 and located at 735 Poinsettia Way, Santa Barbara, California, 93111, this is one of those homes Santa Barbara has that you and your family won’t want to miss in your home search.
Search all current homes Santa Barbara currently has listed in Goleta with our free MLS search tool on our Santa Barbara website using our free MLS search tool.
Homes Santa Barbara
Do you have specific questions about the Goleta, California real estate market or any of these homes Santa Barbara is currently offering? Are you interested in learning how to buy a Goleta home? Contact Daniel Zia and the Zia Group team by email (Daniel@ZiaGroup.com), phone (805-637-7148), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Goleta MLS and set up a customized email-based home search for you to track Goleta real estate and other Santa Barbara properties at your leisure. Thank you for visiting the Santa Barbara Real Estate blog and we look forward to serving you and your real estate needs.
Santa Barbara & Goleta, CA REO Alert – Two Hot Bank-owned Property Deals
There are two REO’s (Bank-owned properties) that just recently came on the market which we wanted to make all of our clients aware of as they are sure to sell quickly.
569 Sweet Rain Place is a Storke Ranch townhome which just came back on the market yesterday, and currently is the lowest priced home in the development at $473,350. With 3 bedrooms, and 2.5 bathrooms, this home offers a great location, newer construction, and excellent square footage for the price. This property has great proximity to USCB, Costco, an the beach and they make great rentals as well to younger families, USCB faculty/staff or students. This townhome also offer a 2-car garages, a private yard, and great shared community amenities like tennis courts and pools in the development. You can find the full details here: 569 Sweet Rain,Goleta, CA 93117.
569 Sweet Rain Place, Goleta, CA
7769 Wagon Wheel Drive is a large 5 bedroom, 3 bathroom single family home in Winchester Canyon (North Goleta). This property sold for over $1.1 million in 2005 so the current asking price of $610,000 is an incredible value. This is a rare opportunity to buy a large home located in arguably the most desirable high school in the area: Dos Pueblos High School district. Full property details are located here: 7769 Wagon Wheel, Goleta, CA 93117
7769 Wagon Wheel Drive, Goleta, CA
If you are interested in either of these Goleta REO’s please contact Daniel Zia (805-637-7148, daniel@theziagroup.com). Daniel and the rest of the Zia Group team are ready to assist you in your Montecito home search. You may also visit our website www.theziagroup.com for detailed information on Santa Barbara Neighborhoods as well as many helpful resources such as Automatic Email Home Finder. Thanks for visiting the Santa Barbara Real Estate Blog.
Santa Barbara Home Sales Report for October 2010
Since 2005, recognized as the peak of the Santa Barbara market, the Santa Barbara home sales data for the month of October has seen significant variability each year. While generally sales and home prices have been dropping slightly, the last year-and-a-half by many indicators besides this month-over-month comparison has appeared to be very flat. While we like to provide these month-over-month comparisons, we highly recommend NOT drawing conclusions for them, as longer periods of comparison (i.e year over year) are better indicators of market shifts and changes. Given the smaller number of sales in a shorter time period (one month) the data is less consistent as a longer term analysis. Stay tuned for a more in-depth market analysis with conclusions on market trends, which will be posted at the end of the year.
The following Santa Barbara home sales charts below have been provided courtesy of First American Title which details the data by area.
If you have any additional questions about the Santa Barbara Real Estate market, please contact Santa Barbara Realtor Daniel Zia (805-637-7148, daniel@theziagroup.com). Daniel and the rest of the Zia Group team are ready to assist you in Santa Barbara home search. You may also visit our website www.theziagroup.com for detailed information on Santa Barbara Neighborhoods as well as many helpful resources such as Automatic Email Home Finder. Thanks for visiting the Santa Barbara Real Estate Blog.
South Santa Barbara County Sales Report – September 2010
Good news for homeowners in the Santa Barbara area: the September home sales data shows a rise in housing values and an increase in total sales of homes over $1 million compared to the same period in 2009. The average price of homes sold jumped up over $200k to $1.32 million since September 2009, and median price of homes sold also increased by over $100k to $795,000. It is important to note the significance of these price increases because they represent the first time since September 2007 that average and median home prices in September did not drop in South Santa Barbara County. The following charts display the September home sales data broken down by area for South Santa Barbara County.
If you are interested in more details about the Santa Barbara real estate market, please get in touch with the Zia Group by visiting our Santa Barbara real estate website or by emailing Daniel directly (daniel@theziagroup.com). The Zia Group team is ready to assist you in your Santa Barbara real estate search, and our website is our first step in serving you. Visit today to research Santa Barbara and Montecito neighborhoods, local real estate trends and more. And as always, thanks for visiting the Santa Barbara Real Estate Blog.
