Gail Shannon, Santa Barbara Realtor

2012 Housing Crisis – Is There Light at the End of the Tunnel?

Gail Shannon — Mon, 05 Mar 2012 19:40:34 +0000

This article was posted about what to expect in the following year for the housing market.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

By: Krista Franks Brock

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

http://www.linkedin.com/news?actionBar=&articleID=5567733516482908167&ids=e3sSe3oMcPwRe3cNd3sRcjwRdiMOdz0TdPsVcj0Rc34PcjAVdPkRb34Pdj4QdzAScjcNdjkVejATdjkIdPkSe3sUdz4UdzwOdz0QdPsRdiMTdz4Uc3AOe3gScjkPcPsTdzkR&aag=true&freq=weekly&trk=eml-tod2-b-ttl-0&ut=2dgp5bFUo9v581

5 Reasons Why to be a Home Owner!

Gail Shannon — Mon, 21 Nov 2011 07:06:52 +0000

With today’s real estate market dramatically changing daily, it is still always better to be a homeowner. Below are 5 brief reasons why it is so great to own your own home. Check out the link below for the full article.

1. Equity: Even with the high initial costs to buying a home, your monthly mortgage payments go toward your own principle verses to your landlord (which you will never see again). Even with the recession, experts still feel that the housing market will recover, making an investment in a home a long-term savings.

2. Relationships: When renting, there is not a lot of opportunity to make lasting relationships with your neighbors. Homeowners have yards, walking trails, community pools and clubhouses where they can get to know their neighbors and socialize more.

3. Predictability: As long as you have a fixed-rate term on your mortgage it’s predictable. Having a predictable mortgage each month that will be the same amount 15 years from now as it is today lets you plan for the future for other predictable expenses that will arise.

4. Ownership: This is obvious. But the perks of owning enables you to make your house a home. Renovating, updating, painting and decorating allows you to personalize your home to your own tastes. When renting, you are usually stuck with the basic wall color, carpet, no option for expanding, etc.

5. Great Deals: With interest rates at a historic low, now is a great time to buy! With fixed interest rates 4% and lower means huge savings for today’s buyers. And with the recession still ongoing means lower house prices as well making it a wonderful opportunity to get your foot in the door with your first home!

If you are looking to buy or sell your home in Santa Barbara, CA call to find out what your options are and how we can help you find the home of your dreams!

Click the link below for the full article “5 Great Things about Home ownership by Carla Hill” at Realty Times. http://realtytimes.com/rtpages/20111102_great.htm

Santa Barbara Mesa Home with an Ocean Breeze!

Gail Shannon — Wed, 05 Oct 2011 06:38:39 +0000

Enjoy cool ocean breezes from this serenely situated home at the end of a cul-de-sac bordered by a greenbelt & seasonal creek. Located on Santa Barbara’s beautiful Mesa neighborhood on the hill above the ocean. This lovely 4bd/2ba home, in best location in Parkcrest community, features a large private yard, wrap-around patios for entertaining, numerous fruit trees & a new driveway. Newer dual-paned windows, patio doors & skylights make this home light, bright & airy.

Click here to see more photos and get more info!

Dining on the Sand at The Boathouse

Gail Shannon — Sat, 24 Sep 2011 04:54:16 +0000

The Boathouse sits right on the beach at Arroyo Burro Beach (better known as Hendry’s Beach to locals). The atmosphere is wonderful with plenty of outside & inside seating, a great bar, and delicious seafood. Enjoy a hot bowl of Santa Barbara’s best creamy clam chowder, some “small bites”, or fresh fish favorites such as the Mesquite Grilled Ahi or the local Petrale Sole which is dusted in seasoned flour and pan sautéed in butter, white wine, garlic and capers and served with roasted red potatoes and sautéed spinach.

The best time to go is obviously at sunset, but if you want a more casual dining experience, go for brunch on the weekends. There is no better way to spend a sunny beautiful Saturday morning than sitting on the beach, drinking a bloody mary and having the Boat House Signature Breakfast- Two poached eggs over Dungeness crab cakes on a bed of roasted potatoes. Topped with chipotle Hollandaise, pico de gallo and avocado. A true Santa Barbara local dish that once you try, you will be going back again.

2011 South Coast Real Estate – Coasting

Gail Shannon — Tue, 20 Sep 2011 04:27:04 +0000

2011 Mid Year Report for South Coast Real Estate

How is Santa Barbara Real Estate?

“Steady resilience” seems to be what the first half of 2011 experienced in the real estate market. The median sales price was $839,950. This compares to $857,500 for 2010 and $850 for 2009 for the same period. This three- year trend in the median price, (down approximately 32% from the high of $1,250,800 in 2007), suggest a steady “foundation” has been established in our local real estate market. “Flat” is good for now, as we have to pass through this phase before we will see any appreciation return in the years to come.

Buyers have returned in steady numbers. Low interest rates and low prices have provided record-breaking affordability levels. This together, with average household sizes at record levels has created a demand for housing. There were 524 sales of houses and PUDs for 2011 through the end of July. This is the highest number of year to date sales since 2007. Pending sales, the most accurate reading of buyer confidence, was at 629 through the end of July. This is also the highest number for the past five years, up 16.3% from the same period in 2010.

Overall on the South Coast, there is only six months of inventory for houses and PUDs. This number is excellent when compared to the number in some inland communities in California who are wading through as much as 40 months of inventory. Goleta and Santa Barbara have only 4 months of inventory while the higher priced homes in Montecito have 13 months of inventory.

With current interest rates at historically low levels, and accompanying low prices, real estate is an excellent long-term investment. With the recent volatility in the stock market and the downgrading of the U.S. credit standing, “steady” and “resilient” sounds pretty appealing.

Montecito Hacienda

Gail Shannon — Thu, 25 Aug 2011 23:12:53 +0000

Live on Cloud 9! This Spanish Hacienda has unobstructed 360 degree views extending from the SB Airport to Pt Mugu. The focal point of the home is the South facing Living/Dining room with walls of glass 18 ft vaulted, tongue groove cedar ceiling. The mountain top retreat is perfect for those looking for a sense of serenity seclusion or a weekend pied-a-terre. Call for an appointment to take a tour of this beautiful home.