As sales have escalated and prices have risen the past 18 months, distressed properties have declined in number dra- matically. This has factored into the already low inventory of houses and condominiums we are currently seeing on the mar- ket. A quick look at the tables on this page shows that there is only one single-family listing that is a bank owned property. Three condos are short sale or bank-owned, but all located at The Grove Condominiums (low-end condos were among the hardest hit by the downturn in the market). Also of note is the significantly higher prices of the listed properties. Some of these are already “sitting” without attracting offers, as it seems the owners were a little more optimistic about prices than the buyers out there in the marketplace.
The perception might be that the market has already passed up many potential homebuyers, but the closed sales are still at 2004-2005 prices, 20-25% off the highs of 2007. I’m not saying prices are going back to their highest levels anytime soon, that’s a long was to go! But we could easily see 10% appreciation per year over the next few years. By my calculations prices have risen 18% since January 2012 for homes in the Ellwood area! Pending sales are pushing that percentage higher.
Ocean Meadows GC Closes for Good
The trust for public lands completed their $7 Million acquisi- tion of the old golf course property, and has donated it to UCSB to manage as part of the Devereux/Coal Oil Point/ Ellwood Mesa Preserve. The plan is to restore the wetlands, which were displaced by the golf course when it was built. The restoration won’t begin for a year or more, and funds are still needed for that work. There will be a planning process to get input and views of local residents and neighbors. Public access will be enhanced according to UCSB officials. There will be about 650 acres of coastal habitat preserved and accessible to the public. I see this as a major asset to homeowners and residents of the Ellwood area, even though as an occasional golfer I have mixed feeling about the loss of an affordable, funky and fun 9-hole course. Note: the former owner of the golf course retained 7 acres as part of the agreement and plans to develop homes.
In the United States, Flag Day is celebrated on June 14. It commemorates the adoption of the flag of the United States, which happened that day by resolution of the Second Continental Congress in 1777. The United States Army also celebrates the Army Birthday on this date; Congress adopted “the American continental army” after reaching a consensus position in the Committee of the Whole on June 14, 1775.
In 1916, President Woodrow Wilson issued a proclamation that officially estab- lished June 14 as Flag Day; in August 1949, National Flag Day was established by an Act of Congress. Show our colors!!!
Everything You Need to Know to Defer Taxes
As we roll into the summer, it’s refreshing to see continuing economic improvement mirroring the growth of income property sales and 1031 Exchanges. However, the excitement of an increased property sale value can be quickly diminished with unexpected taxes. Many real estate investors are surprised to learn that taxes on their profits are substantially higher this year. When investment real estate is sold in 2013, some taxpayers could pay up to 20% capital gains tax, a 3.8% healthcare tax, depreciation recapture tax and varying state imposed taxes. Added together, these taxes can total anywhere between 30-40%, making 1031 Exchanges an invaluable wealth preservation tool.
Tax deferral is the hot topic in the real estate community and a 1031 Exchange still allows taxpayers to defer all of these taxes by sim- ply rolling their profits into another property or properties. While the concept of a 1031 Exchange is straightforward, some investors and advisors may not have participated in a transaction for many years and may need to be updated on how to properly execute a 1031 Exchange.
Investment Property Exchange Services (IPX1031) is a ‘Qualified Intermediary’ who assists clients in 1031 Exchanges. You can find out more at a Webinar they are hosting in June or July. Their website is http://www.ipx1031.com/. Know your options and make informed decisions for your next 1031 Exchange transaction. I have experience representing owners and have completed 1031 Exchanges for them. The use of a ‘Qualified Intermediary’ is standard practice, and there are other companies besides IPX1031 who offer these services, call me to find out more.
Current Offerings: Houses and Condos
|7349 Elmhurst Pl||3/2||Active||$649,000|
|7218 Evanston Pl||3/2||Active||$844,000|
|Big Sur Dr||3/2||Active||$649,000|
|Cannon Green *||3/2||Pending||$439,000|
|Grove condo **||2/2||Active||$359,900|
|Grove condo *||2/2||Pending||$319,000|
*Short sale, **bank sale
|Bd/Ba||Sale Date||Sale Price|
|6970 Scripps Crescent||3/2||5/13||$800,000|
|7372 Chapman Pl **||Duplex||3/13||$611,500|
|7180 Georgetown *||2/1||4/13||$260,000|
|353 Pacific Oaks||2.2.5||5/13||$590,000|
|7124 Phelps Rd.||2/2.5||4/13||$600,000|
|425 Cannon Green #F *||3/2.5||4/13||$425,000|
|425 Cannon Green #G||3/2.5||2/13||$448,000|