Property Perspectives

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From a first-time home buyer:

"We recently purchased a two bed/two bath condo on State Street, between Constance and Alamar. The initial asking price was around $500,000, but when we made our offer, the asking price was $475,000. We ended up paying $425,000 for it. This was back in April. I think we got a pretty good deal on it, it's a good size, in a great neighborhood, good school (Peabody), and a brisk walk away from downtown."

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From a long-time home owner:

"It took 5 months but we finally finished the refinance of our 1st and 2nd mortgages. We have been steady as rocks, same jobs for 13 and 17 years, no loans, no debt, and yet it took ages to complete. We are with the same loaner. I think that they only choose the top people (credit wise) to approve. I am sure happy to be done with that."

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From a recent seller:

"I sold my house in Goleta in early 2007, just as the market was starting to go down, thinking I would be able to downsize into something nice. Unfortunately, due to the combination of losing some of my profits through the stock market and the high prices of R.E., I can't afford anything. I have looked at small houses in questionable areas of town that are still in the $500,000-$600,000 range which, to my mind, is unbelievably overpriced. I love SB and am resigning myself to be a renter from now on. Although prices have decreased somewhat, the market is still very high and I wonder how people can afford to buy with all of the other economic woes floating around."

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From a local home owner:

"Here are just a few items from a recent conversation I had with my agent:

1. My property is about 20% below its high value.

2. There are many foreclosures and short sales on the market, but they never go for the listing price. Recent homes in Goleta were listed at 400k, but are generally bid up into the 600-700k range by multiple offers (agent says they are a "feeding frenzy").

3. My daily drive shows many sold signs, and property on my street sold within days. Other homes nearby priced at pre crash levels have been on the market for over a year.

4. Commercial property in Goleta business parks seems fairly stagnant.

5. Getting a refinance today is very difficult, requiring multiple inspections, repairs, credit checks, etc. It is still very difficult to find someone to process a refi."

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From an attempted buyer:

"We had a bid accepted for a beautiful old Samarkand property that was in foreclosure and were very excited about it. But then someone came in at the last minute with a higher offer and the bank took that one instead. It worked out for the best that we didn't get the house, but it sure made us feel like there's no such thing as a sweet short sale, even in this market."

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From a resigned renter:

"For those of us who have to rent, the market is tough. Lots of folks displaced by fires with insurance companies paying high rent rates, are keeping things higher. Also, there is a consistent increase in rent if you have a pet. Seems strange, since children do way more damage than a cat...the going policy is to tack 50 a month onto the rent for each pet...in lieu of a pet security. That's very costly!

"I have been a math teacher for 20 years in the SB schools. I love what I do, but have not been able to save for a down. The market being as high as it is makes it impossible. So, instead of worrying about it, I calculated out how much it will cost me to rent vs. buy (over 30 years). Renting comes in at under 1 million dollars, but owning a $600,000 house -- at a 5.5 % loan, tops out at over 4.5 million. It doesn't seem as if any $600,000 home will appreciate enough to counter-balance the real cost of owning a home in SB."

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