Window of Opportunity
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Summer Real Estate Experts seem to agree that home prices have become more attractive than they have been in recent history. Thanks to historically low interest rates, new accessibility to home loans, and stabilizing home prices, buyers and sellers have good reason to look forward to the summer 2009 market. Lending Snapshot-
Plenty of Good Options Although lending standards are much more rigid of late, there are still a number of great lending options available to homebuyers. Conventional 30-year fixed rate mortgages are solidly in the Five percent range and the 2009 Stimulus package now allows loans for up to $729,750 which is welcome news for Santa Barbara. We have low prices and low rates for the first time ever. For those without the 20-25% percent down normally required, FHA has comparable rates and loan sizes also to $729,750. These loans require only 3.5% down and have more lenient standards making home ownership possible for a much broader spectrum of the population. Despite media reports, people looking at properties in the one million plus range, or who want greater flexibility in their financing, still have very attractive rates for adjustable rate loans in the low Five percent to the low Six percent range – even for loan amounts up to Five Million! One of the most popular products is a 40-year loan that is fixed for the first 15 years and offers an interest-only feature. After 15 years, the rate adjusts one time only and then takes whatever remaining loan balance, fixes it and amortizes it over the next 25 years! Even more options are available to high net worth borrowers with great rates and loan sizes up to Forty-Five Million. More than ever, you should talk with a qualified professional to investigate what scenarios might suit you best and to see exactly where you stand with current underwriting guidelines.
written by Maddox Rees of Coast Village Lending Real Estate Snapshot-
Santa Barbara Statistics can often be useful to help understand What the real estate market is doing. Among the many figures that show the direction of home sales, one in particular provides us with the pulse of the market, the number of “sales pending.” A “sale pending” occurs when a buyer and seller negotiate a contract for the purchase of a home. These sales provide us with a barometer of how the market is performing. Is it improving, declining, or holding steady? The good news is that the current number of sales pending show the market is improving. The information below compares the number of pending sales from January 1, 2008 through June 19, 2008 with the same timeframe in 2009. All numbers were compiled by the Santa Barbara Multiple Listing Service and are for homes/estates only.
Sales Pending Chart
2008 Compared to 2009
Last Year: 1/1/2008 to 6/19/2008
This Year: 1/1/2009 to 6/19/2009
Please note that all areas except Montecito and Goleta North show a significant improvement over last year. Goleta North shows more of a steady market, while Montecito, with its higher price point, seems slower to rebound.
written by Sylvia Stallings and Patty Tunnicliffe of Village Properties |
