Bank of America
Cyndi Nunez
Mortgage Loan Officer
1525 E. Main Street, Suite A
Santa Maria, CA 93454 
Office: (805) 922-7771 ext: 23
Mobile: (805) 705-0579
Fax: (805) 349-0304

Market Update
Week of July 7 to July 13, 2008
Status	Address	City	Type	Asking Price	Original Price
New	330 W Hwy 246 #159	Buellton	Mobile	$69,000	$69,000
New	539 Pine St	Solvang	SF Res	$399,000	$399,000
New	27 Bundy Cir	Buellton	SF Res	$449,000	$449,000
New	2113 Village Lane	Solvang	Condo	$469,000	$469,000
New	380 Arden Ave	Buellton	SF Res	$625,000	$625,000
New	3460 Tivola St	Santa Ynez	SF Res	$699,000	$699,000
New	409 Alisal Rd	Solvang	Bus Opp	$849,000	$849,000
New	431 2nd St	Solvang	Res/Comm	$995,000	$995,000
New	3071 Tiana Dr	Santa Ynez	SF Res	$1,139,000	$1,139,000
New	1430 Remington Dr	Santa Ynez	SF Res	$1,995,000	$1,995,000
New	2920 Avenida Caballo	Santa Ynez	SF Res	$1,995,000	$1,995,000
New	1080 Viendra Dr	Solvang	SF Res	$2,200,000	$2,200,000
New	2090 Dermanak Dr	Solvang	SF Res	$2,800,000	$2,800,000
New	873 Viendra Dr	Solvang	SF Res	$2,950,000	$2,950,000
Reduced	1676 Maple Ave #6	Solvang	Condo	$199,900	$289,900
Reduced	1875 Laurel Ave	Solvang	Res Land	$325,000	$375,000
Reduced	1879 Laurel Ave	Solvang	Res Land	$325,000	$375,000
Reduced	1883 Laurel Ave	Solvang	Res Land	$325,000	$399,000
Reduced	265 5th St #A	Solvang	Condo	$369,000	$399,000
Reduced	435 Central Ave	Buellton	SF Res	$400,000	$500,000
Reduced	345 Central Ave	Buellton	Bus Opp	$450,000	$500,000
Reduced	590 Sycamore	Buellton	SF Res	$629,000	$669,000
Reduced	3050 Samantha Dr	Santa Ynez	SF Res	$799,000	$899,000
Reduced	2602 Baseline Ave	Ballard	Res Land	$849,000	$899,000
Reduced	875 Carriage Dr	Solvang	SF Res	$925,000	$939,000
Reduced	90 W Hwy 246	Buellton	Retail	$1,150,000	$1,300,000
Reduced	1695 Linda Vista Dr	Santa Ynez	SF Res	$1,646,000	$1,995,000
Reduced	1325 W Hwy 246	Buellton	SF Res	$1,795,000	$1,995,000
Reduced	1325 W Hwy 246	Buellton	Res Land	$1,795,000	$1,875,000
Reduced	2013 Refugio	Santa Ynez	SF Res	$2,149,500	$2,590,000
Increased	1 Still Meadow Rd	Solvang	Res Land	$1,499,000	$1,495,000
Increased	2 Still Meadow Rd	Solvang	Res Land	$1,599,000	$1,595,000
Contingent	330 W Hwy 246 #94	Buellton	Mobile	$98,500	$129,500
Contingent	13 Six Flags Cir	Buellton	SF Res	$295,000	$349,000
Pending	80 Zaca St #5	Buellton	Mobile	$49,500	$61,500
Pending	436 Gay Dr	Buellton	SF Res	$434,900	$434,900
Pending	1885 Edison St	Santa Ynez	SF Res	$1,495,000	$1,495,000
Sold	150 2nd St	Buellton	SF Res	$390,000	$409,900
Sold	3344 Willow St	Santa Ynez	SF Res	$832,500	$895,000
Sold	2560 Garden St	Solvang	SF Res	$845,000	$899,000

With all the bad news that is filling the headlines it may be difficult to believe that there are some very positive opportunities going on in the Real Estate World.

When the headlines bleed of fear we should take a moment to think about what is being said/written about.  The story may be completely benign but the headline draws our attention. Unfortunately, the critical information is often times scrambled within the first few paragraphs  and the correct/factual information is buried in the last 2.  Such has been the way the press writes when it's targeting an industry.

In today's Real Estate world 94% of the buyers who borrow money to make a home purchase pay their mortgages on time.  This leaves 6% of the borrowers in the headlines.

There are something like 8500 banks in the United States today ... of which 5 have gone under this year (from CNBC this moring).  IndyMac Bank has been the latest statistic of a fallen giant ... but the SEC is investigating a certain Senator's remarks that may have cost the FDIC unnecessary billions in bailout money based on fear driven statements (check out today's Wall Street Journal about Senator Chuck Schumar's remarks & the SEC probe ... I think this is also in yesterday's LA Times).

Subprime mortgages & adjustable rate mortgages have been misrepresented in the press ... because of this many loan products have been unnecessarily shelved.  There was a good article in the Santa Barbara News Press Real Estate section on the monthly "option ARM" mortgages ... the message being that a borrower has a choice as to which payment they make each month. A CHOICE ... something that we are getting less of in lending because of the grossly inaccurate writings of the press. 

Last month tomatoes were the banished culprits of a suspected salmonella outbreak.  Millions of people eat tomatoes every day ... and the headlines bleed because about 1000 people get sick (and the only common factor is tomatoes)?  Salmonella is a bacteria found in animal products ... poultry is usually associated with this.  Did the CDC check the mayonaise or the prep areas where the tomatoes were being served?  Watch out for cilantro and jalopeno peppers - the press is afer you next!

The point being is that the Headlines are misleading, the information to the uninformed consumer can be confusing and the end result is false fear - a big product on Wall Street today.

Opportunities abound in Real Estate if the consumer could just get past the fear and into the facts. 

1)   With all of these foreclosures happening (KNX news out of Los Angeles today on their monthly foreclosure report stated that over 96% of the properties that go thru foreclosure sale go back to the bank) look at the buying opportunities available with a bank owned property!  Banks don't want to keep a nonperforming asset - they want to sell these properties ... it's time to negotiate a great price on home!

2) Interest rates are still at historic lows ... and the "conforming" loan limits have been increased to $ 729,750 in our area.  This means a qualified buyer in this price range can get in with 10% down (remember this option is only thru 12/31/2008).

3) Have only a small down payment?  Look at the FHA loans ... 3% down for loan amounts up to $417,000 ... 5% down for loan amounts up to $729,750.  All credit scores considered.  The Mortgage Insurance Premium has been adjusted based on LTV and credit score ... in many cases it's LESS than conventional PMI.

4) Unemployment is still very low - this means people are working and need a place to live.  With the declining prices and rising inventories renters may have an opportunity to purchase something for a monthly payment similar to what they are paying in rent.  Invest in something you need - a home is a good starting point.

5) Financing is available - and Countrywide (now owned by Bank of America) has a powerhouse partner with money to lend.  We are secure in our financing capabilities, we have local processing & funding (to help expedite your escrow), reduced doc loans ... even the opportunity to cross collateralize properties.  With all the uncertainties in lending out there remember that Countrywide/BankofAmerica is a committed & capable partner in helping you and your customers with their real estate financing needs.

Speaking of rates - here is a sampling of what's available:

30-year Conforming Fixed Rate               6.25% @0pt     6.00% @ 1pt     5.75% @ 2pt

30-year Conforming/Jumbo Fixed Rate   6.375% @ 0pt    6.25% @ 1pt    6.00% @ 2pt

30-year Jumbo Fixed Rate                      7.00% @ 0pt     6.625% @ 1pt    6.375% @ 2pt

5/1 Conforming Interest Only                 6.00% @0pt      5.625% @ 1pt    5.125% @ 2pt

7/1 Conforming Interest Only                6.375% @ 0pt      6.00% @ 1pt    5.625% @ 2pt

Rates quoted are for purchases, owner occupied, SFR, credit scores >700, 80% LTV (75% LTV for jumbo) ... rates may vary depending on owner vs investor property, property type, credit scores, loan-to-value (a lower LTV may have a lower interest rate) and verifiable income.   Please call me for rates specific to your customers needs.

Happy Home Selling!

Betsy Riedy
Sr. Loan Consultant
Countrywide Bank, FSB
801 Chapala Street
Santa Barbara, CA 93101
(805)884-7107 direct
(805)448-8562 cell