Tea Fire Didn’t Stop This Celebrity Buyer

The Tea Fire didn’t prevent former Doobie Brothers front man, Michael McDonald, from closing on 430 El Cielito Road last Friday.  Despite the fact that the property is located at the base of Mt. Calvary Road, County records indicate that McDonald went through with the transaction, which closed at $1.6 million on November 14th.  McDonald was undoubtedly attracted to the bucolic, ocean view parcel and the potential to improve upon the original, 1950’s ranch house.

Is Michael Jackson’s Neverland Ranch No More?

It would look that way.  According to the County of Santa Barbara, Michael Jackson’s name was removed from the deed in a $35 million dollar transaction the recorded earlier this month.  The former Sycamore Valley Ranch (Neverland’s pre-Michael Jackson name) has been sold to an entity called the Sycamore Valley Ranch Co. LLC.  While the details are not clear,  it is believed that Jackson still has an interest in the property, but does not retain control.  That would appear to belong to Tom Barrack and Colony Capital, another one of the partners in Sycamore Valley Ranch Co. LLC.  Colony Capital was the entity that bailed out Jackson this summer when he was facing foreclosure over a $25 million dollar mortgage.  What the future holds for the property, which is over 2500 acres in the Santa Ynez Valley, is also not known.

New Listing - Great Price & Great Potential in Goleta North

This is a listing that we are really excited about and think will go fast with multiple offers.  It is at a price point that has been extremely active in the area.  Further, while the property needs cosmetic fixing and updating,  it is on a really great street and is quite large when compared to the surrounding neighborhood.  The list price is $679,000 and the home is a 4 bedroom 3 bath with laundry, family room and attached two car garage.  The address is 6553 Camino Ventoroso.  Inspection reports are available via the MLS, or if you prefer we can send them to you via email.   Please call Kelly with any questions: 805.895.4406.

Tea Fire Rental Info

The Tea Fire is contained and life in most of Santa Barbara and Montecito has returned to normal.  Unfortunately, for the 210 families that lost homes,  the impact of the Tea Fire is just beginning.  One of the ways the real estate community is helping these families is to facilitate their search for a rental.  This fire has really hit home for a lot of us:  Our personal home was in the evacuation zone and the fire got to within a few hundred feet of us and we have friends, neighbors and clients that lost their homes.

So if anyone has a rental that is currently available and would like to get the word out to the Tea Fire victims,  please contact us and we will add it to the list.

Property Pick of the Week!

This is a very interesting property and it is now at a very interesting price.  The property is an approved short sale and and priced at $1,495,000.  What makes this so intriguing is that it is two houses, with seperate driveways and access on 1.23 acres with ocean views.  Now here is the tricky part:  the main is house is in the middle of a remodel  (the guest house has already been done). The listing agent believes that there is about $150,000 in renovations left to do.  Whether this is accurate is hard to say, but I am sure it wouldn’t be any less.  I would certainly suggest that anyone who thinks this property is an option for them would need to bring their contractor (unless, you are a contractor :-).  All that being said,  for the right person, this represents a great value.  If you are interested in seeing the home, call me at 805.451.4433.  This is not my listing, but I would be happy to set up a showing.   The property is at 1010 La Vista.

Does Underwater Mean Foreclosure?

I ran across this article in the Wall Street Journal that helped put some historical perspective on 1 out of 8 homeowners being “underwater”.  Many experts have pointed to these underwater homeowners as a ticking economic time bomb, but this may not be the case.

“What does being “underwater” in your house really mean? Probably not that you’re drowning:

…experts who have studied previous sharp housing downturns in Texas, California, New York and Massachusetts say that being underwater, while unpleasant, doesn’t lead huge numbers of homeowners to default on their mortgages and end up in foreclosure.

Christopher L. Foote, Kristopher Gerardi and Paul S. Willen of the Boston Federal Reserve Bank studied more than 100,000 homeowners who were underwater in Massachusetts in 1991 and found that just 6.4% of them lost their homes to foreclosure over the next three years, according to a paper published in the September Journal of Urban Economics. The vast majority of homeowners simply continued paying as usual because they focused on the affordability of their payments, not on what they owed, and they believed home values would eventually recover.”

Source:
‘Underwater’ Need Not Mean Foreclosure
KAREN BLUMENTHAL
WSJ, November 5 2008 00:36
http://online.wsj.com/article/SB122583941535198573.html#articleTabs=article

Property Pick of the Week!

We just spent a magical afternoon showing what I believe to be one of the best buys in Montecito right now: 277 E. Mountain Drive, just reduced to $1,695,000.  The charming 3 bedroom, 2 bath adobe with hand-painted Mexican tiles and open-beamed ceilings has been lovingly restored to take prime advantage of the ocean views to the south and the Westmont Preserve to the west.  It sits on one, lush acre in the Cold Springs School District and includes a detached, private studio.  Contact us for more information, as this one-of-a-kind property loaded with character will surely be snatched up quickly!

October Sales Volume as compared to 2005-07

Thanks to all of you that have been asking for the latest Santa Barbara sales statistics.  What I have posted here is the number of sales on the South Coast (Carpinteria, Montecito, Summerland, Santa Barbara, and Goleta) month to month going back to 2005.  Some of the interesting items that I take from these statistics:

1. The last two months of 2008 were more active than 2007.

2. The total number of sales in 2007 and 2006 were more or less even.

3. That 2005 was the peak in more than just median sale price, but we also saw 300 more transactions.

Also, please keep in mind that the total for 2008 is less the eventual sales for November and December.

To view the full size image, click here.

6 Key Facts About the First-Time Buyer Tax Credit

This is nicely written overview of the tax credit being offered as part of the House and Economic Recovery Act.  While $7,500 might not seem like a lot of money relative to the cost of a home or condo in Santa Barbara,  it is something to consider when trying to determine what you can or can’t afford.

The tax credit may be enough of an incentive for potential buyers to jump off the fence. That is, if they know about it.   By Robert Freedman  November 2008

The $7,500 home ownership tax credit that the federal government created earlier this year as part of the Housing and Economic Recovery Act (H.R. 3221) is another tool to encourage potential buyers to jump off the fence and get into the real estate market.
When you combine the tax credit with today’s low interest rates, wide selection of for-sale inventory, and affordable home prices, many of the pieces are in place to buy now. But tax credits can be confusing. To help you understand how the credit works and why it may help you, you must learn the details.
Here are 6 key facts to understand about the Buyer Tax Credit:

1. Buyers have until July 2009 to make a purchase that qualifies.
The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009, you can still take the credit on your 2009 tax return. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.
2. Buyers don’t really have to be “first-timers.”
The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years. [Read more]

Romantic Ocean View Retreat in Santa Barbara

Thought I would pass on our great new listing to you: It is a 3/2 with amazing ocean views in Mission Canyon,  and is very well priced at $1,329,000.  For more information go to www.2617montrose.com

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