Don’t Fall Victim to this Most Common Remodeling Mistake

by Deidre Sullivan, HouseLogic.com

There’s a reason for the proverb “measure twice, cut once,” and these pictures prove it. If you double-check your measurements, you can avoid common, and sometimes costly to fix, clearance mistakes

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Taking accurate measurements is a must — especially when it comes to doors. Before you remodel, use plan drawings to check the arc of swinging doors and make sure they’ll clear nearby fixtures, walls, and cabinets. A smaller toilet or a shower curtain will fix this blunder, but retrofitting is an extra expense.

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Mortgage Update

by Kelly Marsh, Broadview Mortgage

Congress approved a deal on Wednesday to raise the debt ceiling and to fund the government for a few months. The news lifted both stocks and bonds. The S&P 500 index reached an all-time high. Mortgage rates also improved nicely after the deal was reported.

THIS WEEK'S RATE TREND IS DOWN

  

Loan Amounts under $417K

Conforming 30 year fixed: 4.250

FHA 30 year fixed: 3.750

Conforming 5/1 ARM: 2.875

Conforming 7/1 ARM: 3.375

Loan Amounts over $417K up to County Limits

High Balance Conf. 30 year fixed: 4.375

FHA High Balance 30 year fixed: 4.125

High Balance 5/1 ARM: 3.250

  

Loan Limit Snapshot

Conforming/FHA

All Counties: $417,000

High Balance Conforming

Santa Barbara: $625,500

Ventura: $598,000

High Balance FHA

Santa Barbara/Ventura: $729,750

High Balance VA

Santa Barbara: $598,000

Ventura: $518,650

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Rates Fall on Debt Ceiling Deal

By Polyana da Costa · Bankrate.comThursday, October 17, 2013

Congress finally got its act together and ended the shutdown and avoided default -- at least for now.

The agreement is a temporary measure that delays the issue rather than fixes it. It's more like a fiscal Band-Aid, but it's better than nothing.  Republicans and Democrats have agreed to fund the government through Jan. 15 and to raise the debt ceiling until Feb. 7.  If lawmakers had allowed the federal government to default on its financial obligations, the economy, the housing market and mortgage borrowers would have taken a big hit, economists and housing advocates say.

Which direction will mortgage rates move?

The deal seems to have pushed mortgage rates down this morning, which surprised some market observers.  Paul Edelstein, director of financial economics at IHS Global Insight, had expected a rally in the stock market and a slight increase in long-term U.S. Treasury yields after lawmakers reached an agreement. Normally, higher yields result in higher mortgage rates.  But investors don't seem convinced that the federal government has its finances under control yet. U.S. stocks dropped this morning, and yields on the 10-year Treasury note dropped to 2.6 percent. It was about 2.67 on Wednesday.

WTFY? (Why the falling yields?)

"I'm not entirely sure why the bond market is reacting this way," Edelstein says. "Markets may be reacting to initial claims, which fell less than expected. Possibly, relief over the debt ceiling is giving way to the realization that another fiscal showdown is coming in a few months."

Edeslstein is referring to the number of claims for unemployment benefits filed last week, which was released by the Labor Department this morning. Claims fell 15,000 to a seasonally adjusted 358,000, less than economists had expected. The report is the first economic indicator released since the government reopened this morning.

Apres le shutdown, le deluge

A series of other economic reports will soon be released, now that the government is functional again. Uncertainty about what these reports will say may be helping keep rates down for now, says Michael Becker, a mortgage banker for WCS Funding Group in Baltimore. Becker also had expected rates to rise after the deal.  "Rates are a lot better today," he says. "I didn't expect this."

This latest government agreement also puts pressure on the Federal Reserve to continue its bond-purchasing economic stimulus, which helps to keep a lid on mortgage rates.
"The Fed could be part of this," Edelstein says. "It's unlikely that they will taper later this year given yesterday's agreement."  But don't bet your money on rates staying low for too long.  "You should probably go ahead and lock now," Becker says.

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Santa Barbara Real Estate Through the End of September 2013

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 September 2013. For the Home Estate/PUD market the numbers of sales fell from the previous month to 107 in September dropping from 121 in August and 113 in July. The Median Sales Price also fell for the month down to $922,500 in September going from $1,065,000 in August and the $948,000 we saw in July.  The opened escrows also fell in September to 98 from 116 in August and 101 in July while the median list price on those escrows fell, going from $999,000 in August to $975,000 in September. There were about 130 new listings that came on the market in September with a median list price of approximately $1.1 million and an average list price of just about $2.13 million which left the overall inventory flat from 337 units for sale in August to 337 in September.

                Year over year sales are up about 5% with the median sales price up to $937,500 for an 18% rise. The average sales price is also up going from about $1.36 million in 2012 to approximately $1.43 million in 2013 for a 5% rise while the numbers of escrows are up with 1,004 in ’12 to 1,016 in ‘13 with the median list price on those escrows up about 15% to approximately $950,000.

Looking at the Districts, Carpinteria/Summerland sales are up from 65 to 80 and the median sales price is up from $732,000 to $849,000. The numbers of escrows are also up from 69 to 91 with the median list price on those escrows rising from $767,540 last year to $861,900 this year.

             For Montecito, sales are down going from 191 to 184 with the median sales price rising from $1.872 million to $2.438 million. Escrows are also down going from 214 to 192 but the median list price on those escrows is up from $1.995 million to $2.495 million.

                East of State St sales are down going from 248 in ’12 to 246 in ‘13 but the median sales price is up from $870,000 to $970,000. The escrows went from 256 to 253 with the median list price on those escrows rising from $897,500 last year to $999,000 this year.

                West of State St sales are up from 199 to 215 and the median sales price is up from $700,000 to $875,000. The numbers of escrows are up with 226 in ’12 compared to 233 in ‘13 and the median list price on those escrows is up from $699,000 last year to $895,000 this year.

                Hope Ranch sales are up from 22 to 26 but the median sales price is down from just over $2 million to $1.983 million. The numbers of escrows are down with 26 last year compared to 23 this year and the median list price on those escrows is down from $2.3 million in ’12 to $2.195 million in ‘13.

                Goleta South sales are up with 93 last year and 95 this year and the median sales price is up from $632,200 to $711,350. The numbers of escrows are down from 108 to 85 with the median list price on those escrows rising from $659,000 to $704,950.

                Goleta North sales are up with 163 in ’12 and 167 in ’13 with the median sales price rising from $623,500 to $775,000. The numbers of escrows are also up from 169 to 170 with the median list price on those escrows going from $615,000 to $779,000.

For the Condo segment of the market sales fell to 34 in September down from 49 in August and 42 in July. The median sales price went back up however from $508,000 in August to approximately $545,000 in September while the numbers of escrows went down from 40 in August to about 30 in September with the median list price on those escrows remaining stable from $532,000 in August to about $530,000 in September.

There were about 50 new condo listings that came on the market for the month with a median list price of about $515,000 and an average list price of approximately $615,000. The overall inventory rose in September from about 80 units for sale in August to approximately 100 in September with the median list price on those new listings going down to about $515,000 in September from $645,000 in August.

Looking at the Districts, Carpinteria/Summerland sales are up from 44 to 71 with the median sales price rising from $364,500 to $443,000. The numbers of escrows are also up from 48 last year to 68 this year and the median list price on those escrows is up from $395,000 to $448,500.

Montecito condo sales are up with 20 in ’12 and 25 in ‘13 but the median sales price is down from $1,105,000 to $995,000.The numbers of escrows are up with 23 in ’12 and 25 in ‘13 while the median list price on those escrows is down from $1,195,000 in ’12 to $995,000 in ‘13.

East of State St sales are down from 98 to 79 with the median sales price rising from $497,495 to $559,000. The numbers of escrows are also down going from 137 to 82 with the median list price on those escrows also down from $587,000 last year to $585,000 this year.

West of State St sales are up from 66 to 87 with the median sales price rising from $375,000 to $550,000. The escrows went from 73 to 87 with the median list price on those escrows going from $399,000 to $558,000.

  Goleta South sales are even from 52 to 52 with the median sales price up from $288,950 to $439,500. The numbers of escrows are up with 55 in ’12 and 61 in ‘13 with the median list price on those escrows up from $310,000 last year to $444,500 this year.

Goleta North sales are down from 46 to 44 with the median sales price up from $349,000 to $422,500. The escrows are down however from 54 to 40 with the median list price on those escrows going up from $369,000 to $425,000.

Through the end of September sales of single family homes is up about 5% from ’12 while the median sales price for those homes is up about 18%. For condos, sales are up approximately 10% with the median sales price up over 27%. Of the single family homes that sold for the month roughly 34% of those sales were over the asking price and for condos that number was about 26%.  The average over asking price for homes that sold fell to about 4.3% and for condos that number was about 5.3%. Sales went down in September as well as escrows and the median sales price also went down under $1 million to about $920,000. Despite the decline of sales and escrows in September the rest of 2013 should remain strong. 

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New Westport at Mandalay Bay Listing

Walk to fabulous beaches or stroll along peaceful nature trails from this elegant townhouse in Westport at Mandalay Bay. Gated complex of 88 units features lush landscaping and large pool with spa. Coveted Cape Spencer model is a light-filled corner unit boasting formal living room with 12' ceilings and French doors to patio, flowing kitchen/family room with balcony, three spacious bedrooms and two and a half baths. Master bedroom has large balcony, two walk-in closets, double sinks, soaking tub and separate walk-in shower. Lots of closet space in roomy second and third bedrooms. Windows and doors galore, all with screens and high-end plantation shutters. Hardwood flooring, plenty of storage space in oversized attached two-car garage, and laundry room with full sized washer and dryer. Ideal home or vacation getaway. Pet friendly!

Offered at $549,000.

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Manhattan 3rd Quarter Market Report

Supply shortages combined with increasing demand pushed Manhattan apartment prices higher over the past year.  Our preliminary data shows prices averaged $1,451,621 in the third quarter, 8% more than a year ago.  The median price reached its highest level in over four years, rising 3% to $870,000.  A 75% increase in the number of closings over $10 million played a large role in these increases.

Buyers, concerned about low inventory and rising mortgage rates, moved quickly during the quarter.  Average time on the market was just 77 days, 29% less time than a year ago.  Buyers paid 98.6% of the seller’s last asking price in the third quarter, up from 96.3% in 2012’s third quarter.  Buyer urgency was also evident in the fact that 16% more closings were reported than the same time last year, despite inventory levels that were 25% lower.

Co-op prices averaged $1,175,163, 11% more than in 2012’s third quarter.  Studio co-ops posted a 17% increase in their average price, while three-bedroom and larger co-ops had a 15% gain.  The average condo price reached $1,864,711 in the third quarter, an increase of 9% from a year ago.  Three-bedroom and larger condo showed the biggest price increases, as their average price jumped 26% to $4,820,112,

The NYC economy remains strong, with 84,400 jobs added in the 12 months ending August.  This growth has offset the sharp rise in 30-year mortgage rates, which are about 1% higher than a year ago.  New development activity has remained strong thanks to the continuing presence of foreign buyers who see the value in Manhattan real estate.

Please keep in mind that third quarter 2013 data is preliminary and subject to revision in future reports.  Data from the prior four quarters has been revised to include sales recorded after our initial reports were released.

by Ellen Devens, Brown Harris Stevens
devensel@bhusa.com

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Housing-Recovery Fears Overblown?

By Nick Timiraos, The Wall Street Journal

Oct. 2, 2013.

Fear that the housing market’s recovery is stalling has been overdone, Goldman Sachs economists say in a new report.

The paper — titled “Where is the pent-up housing demand?” — suggests that housing demand among the young has been suppressed because of cyclical issues not structural ones.

Homeownership hasn’t fallen out of favor and student-debt levels aren’t the main culprits for lower housing demand among young buyers, economists Hui Shan and Eli Hackel write. Instead, they suggest that the economic downturn is most responsible for muted homeownership gains among younger households, and that the “pent-up” housing demand will improve in step with economic gains.

The bear case on housing goes something like this: The current “recovery” has been driven to an unhealthy degree by low interest rates and investor purchases of homes, particularly by large institutions. Meanwhile, traditional owner-occupant buyers can’t qualify for loans, because of some combination of having too much debt (especially student loans for younger buyers), stagnant incomes and tight credit standards.

Shan and Hackel aren’t convinced.

“We think the pessimism about the housing recovery is overdone,” they write.

The authors focus on the homeownership rate among those between ages 25 and 44, the largest cohort of first-time buyers and move-up buyers. Compared to the 1985-1994 period (when the overall homeownership rate was mostly flat), homeownership among 25-to-44 year olds was reduced by around 1.1 million owners last year. Most of the shortfall, they conclude, comes from medium-to-high income households. They turn to three reasons that might be the case:

1. Could it be that homeownership simply isn’t cool anymore? Not really. Surveys show the vast majority of non-homeowners under age 49 still aspire to homeownership.
2. Could it be that young renters don’t have enough money to make a down payment or enough income to qualify for a mortgage? Not so much, they find. Using data from the 2010 Census, they find that among 25-to-44-year-old renters with incomes above $50,000, around 40 percent have at least $25,000 in financial wealth — enough for a 10 percent down payment on the median priced U.S. house. Nearly half of younger renters with at least $50,000 in income have total debts of less than 5% of their incomes, meaning they should have the capacity to take out a mortgage for a home purchase.
3. Could young households have delayed purchases because of the severe shock that housing and labor markets went through? The authors conclude that this is the most likely explanation. Homeownership rates declined less in states where the job market experienced less stress.

In states where unemployment fell by less than one percentage point below their long-run average, the homeownership rates of younger renters with incomes over $50,000 remained similar in 2012 to their 1985-94 levels. But in states where unemployment rates were more than one percentage point above their long-run average, homeownership rates for younger renters fell by four percentage points compared to their 1985-94 levels.

“As the housing and labor markets gradually recover, we expect to see the homeownership rate in this population normalize,” Shan and Hackel write. Moreover, population growth among the so-called “echo boom” generation of children born to the baby boomers, who are just now beginning to form households, “implies upward pressure on housing demand.”

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Buffett's Real Estate Chain Opens in Santa Barbara

Prudential California Realty's mainstay blue-and-white "for sale" signs that featured the Rock of Gibraltar as its corporate symbol are now a thing of the past.

In their place on lawns in front of homes up and down the South Coast will be the cabernet-and-cream signage of Berkshire Hathaway HomeSerivces.

Click here to read the Santa Barbara News-Press article from Wednesday, October 2, 2013.

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