Happy New Year!

Don't forget about the Polar Bear Dip tomorrow at the Cayucos Pier.

Acording to the latest info from the Census Bureau, California remains the most populous sate with 36.5 Million as of 7/1/06. For the period July 1, 2005 - July 1, 2006, California gained 303,402 people. Texas was the largest gainer over this period with and increase of 579,275.

As far as fastest-growing states goes, Arizona is #1 with a 3.6% change with Nevada at 3.5%. The other states in the Top 10 are Idaho, Georgia, Texas, Utah, North Carolina, Colorado, Florida, and South Carolina.

From MSN Money- National Averages(APR): Low - 5.41% Average - 6.15% High - 7.17%

With mortgage rates staying steady and prices settling down just a bit, are you chomping at the bit to buy a home? You may want to consider creative ways to purchase as payments are high with large mortgages. This article discusses many ideas in the creative realm. Just remember to be very cautious of the negative amortization loans as they can sink your financial ship.

Clink the link to read the full article.

Call Margie at Team Mortgage with your mortgage questions. 805-473-0309

Be careful of Photo enhancements!

With the improvements in digital photography and cameras, the photos of homes are getting better and better. Editing the photos in a program like Photoshop is also a tool that some marketing-savvy Realtors are using these days. But, some Realtors are crossing the line by removing power lines, road signs, fire hydrants, and other items from photos.

When I edit photos of a home, I fix shadows, colors, hues, and other things to make the items in the photo look their best. I don't remove things that are part of the home or surrounding area. This would misrepresent the home and become a liability for the agent and homeowner.

Here's results from a survey of real estate agents of what's in and out for home buyers.

In
- online home valuations
- savvy buyers
- home offices
- upscale garages
- 2 home offices
- upscale showers
- snoring rooms (a 2nd bedroom off the master)
- structured wiring
- mixed finishes on kitchen base and wall cabinets

Out
- "As-is" terminology in the marketing of a home
- buyer incentives
- endless Open Houses
- Over full-price offers
- glass kitchen cabinet doors
- bowl-shaped above counter bathroom sinks
- any shiny metal finish
- spiral staircases

Read the entire article here

With the decline in the number of transactions over the past 6 months, the size of the pie for Realtor commissions has become lots smaller. Some agents haven't had *any* slices of the pie for months. I went to a Realtor conference in Southern California a few months ago and they showed a slide in one presentation of a decline in the number of Realtors. I haven't heard any updated statistics on how many Realtors are leaving the industry. On the Central Coast, we saw a steep jump in the number of Realtors over the past few years to over 4200. This doesn't count people with real estate licenses that aren't Realtors.

I recently received my bill for 2007 membership for the Association of Realtors. To give you some inside info, it costs $484 to be a member of the Realtor Association. There is also an optional $197 for the Realtor Action Fund (a political contribution). On top of this annual charge, we pay quarterly fees to the MLS. This is for access to the MLS system plus use of the lockbox smart card. This works out to be about $400 annually.

My Association already sent out an email weeks ago asking who wasn't going to renew their Realtor membership so they could see the impact on their budget. With dues payable by January 1st, I think that this will be the time when we'll see many Central Coast Realtors leaving the association.

Make sure to ask a real estate agent if they are a Realtor and also a member of the local MLS. Their 2007 status may have changed.

We're still seeing a good number of price reductions. In the last 5 days, there were 81 which is far less than what we've seen over 5 days periods the past few months. Most price reductions are around 2-5%. Some $million+ homes had a bigger drop. A Pismo home dropped from $2.295M to $1.999M (over 10% drop), a home in Templeton dropped from $1.69M to $1.5M (similar 10% drop), and a Los Osos propery dropped from $1.45M to $1.275 (almost 10%). This isn't too surprising as it's hard to price these type of homes because there usually aren't many (if any) comparable Solds. The value is truely what the Buyer will pay and it looks like some of these may be priced too high for the Buyers that are out there looking.

I decided to stop by Best Buy in SLO yesterday mid-afternoon. The traffic congestion reminded me of the Bay Area. Line of cars to get into the shopping center and no parking places. I decided it wasn't that important to get my shopping fix so I then dealt with getting out of the center. I thought if I went down Madonna to Los Osos Valley Rd, I'd avoid the Madonna/101 mess. Silly me!

I hope that this isn't an indication of what it will be like when the Marketplace will be built. We really need that Prado Rd overpass.

CNN/Money tells us 6 strategies to survive the real estate bust

1. Lower your expectations
2. Drive a hard bargain
3. Consider renting
4. Step away from exotic mortgages
5. Shop for a rate drop
6. Keep an eye on your equity

Read the article here

I don't know if it's because the market has slowed or what but over the past 2 weeks, I've received 5 sales calls from Mortgage companies. Since my number is on the Do Not Call list, this shouldn't be happening.

If you get a call that you think violates the Do Not Call law, make sure to note the company name, phone number, and time of call. Then go to this web page to report the violation. This law has been out too long for someone to plead ignorance. More likely, they don't want to pay for the DNC list and do the cross check before they dial the phone number.

Check out the December issue of Central Coast Home & Outdoor. Not only is there a good article about what features homebuyers love, but there is also a featured article about Central Coast real estate from someone named Keith Byrd! :)

Lindsay Lohan will be filming in SLO next month for her new movie. I hear they will be looking for extras to be in the stands for a football scene at SLO High School. Wish the movie had a different story though. The Rex Kreb nightmare wasn't that long ago.

Here's another CNN/Fortune article on their predictions on what some markets will do in 2007. Click here.

Here's the November numbers for Southern California

All Homes	No Sold Nov-05	No Sold Nov-06	Pct. Chg	Median Nov-05	Median Nov-06	Pct. Chg
Los Angeles	9,066	7,351	-18.9%	$497K	$510K	2.6%
Orange County	3,503	2,475	-29.3%	$616K	$616K	0.0%
San Diego	3,937	2,987	-24.1%	$518K	$482K	-6.9%
Riverside	5,904	3,794	-35.7%	$405K	$426K	5.2%
San Bernardino	3,992	2,926	-26.7%	$350K	$380K	8.6%
Ventura	1,235	855	-30.8%	$612K	$562K	-8.2%
So. California	27,637	20,388	-26.2%	$479K	$487K	1.7%

Source: DQNews.com

Home prices decreased in many California markets
in November compared to last year. In San Luis
Obispo, the median price dropped 8.4%.

All Homes	No Sold Nov-05	No Sold Nov-06	Pct. Chg	Median Nov-05	Median Nov-06	Pct. Chg
Alameda	2,009	1,441	-28.3%	$587K	$581K	-1.0%
Contra Costa	1,961	1,406	-28.3%	$589K	$562K	-4.6%
Marin	361	268	-25.8%	$809K	$841K	4.0%
Napa	183	125	-31.7%	$605K	$596K	-1.5%
San Francisco	594	441	-25.8%	$749K	$754K	0.7%
San Mateo	756	581	-23.1%	$733K	$726K	-1.0%
Santa Clara	2,394	1,846	-22.9%	$653K	$665K	1.8%
Solano	774	565	-27.0%	$490K	$446K	-9.0%
Sonoma	685	531	-22.5%	$574K	$530K	-7.7%
Bay Area	9,717	7,204	-25.9%	$625K	$616K	-1.4%

Source: DataQuick Information Systems, www.DQNews.com

There's going to be an ice skating rink on the Central Coast for the holidays! From December 22nd to January 7th there will be one at the Atascadero Sunken Gardens. Map here It will be open daily from Noon to 10 pm. $12 for adults/teens, $8 for 12 and under.

While I'm on the topic of things in the sky, there's a missle launch scheduled for today (the 14th) at 1 pm from Vandenburg. We usually hear the "whoosh" of the rocket and while not as visual as a night launch, you should be able to see if if you look towards Vandenburg.

Don't know if you heard but we had a meteor shower tonite. The Central Coast is a great place to watch one since we don't have that many city lights. The weather was perfect tonite (mild) and a clear sky. While this one wasn't an overly active meteor shower, I always find it fun to sit on my balcony and watch for awhile!

From MSN Money- National Averages(APR): Low - 5.41% Average - 6.11% High - 7.17%

Well, it looks like last week was a slight dip in rates.

Rates do determine how much you can borrow for a new home, but the most emotional factor is the home price. This article link warns of the temptation to buy too much house and set yourself up on a financial house of cards. In our particular market keeping the home price down is definitely a challenge.

To discuss mortgage options call Margie @ 805-473-0309.

I discovered my online home valuation service isn't finding properties. I've contacted the vendor that supplies this to me and they are aware of the problem and are working on it. I'll blog when it is fixed.

The National Association of Realtors says home sales may keep falling in 2007. Industry group says 2006 decline likely to continue but should level off by the end of year; increase seen for interest rates. Read article here

The following is a post from a Realtor message board about an Open House experience. I'm one that believes that Open Houses do little to sell a home. The statistics say that the percentage of Buyers that found their home through an Open House have dropped down to around 1%. Open Houses are typically used by new agents to try to find people that aren't represented by Realtors yet. That's why the majority of Open Houses are not hosted by the Listing Agent, but someone else in their office.

If you have been to an Open House of a home that is still occupied, you've probably observed that the agent hosting the Open House doesn't ask for a person's id, nor do they accompany them throughout the house. Drugs in medicine chests and small items are what some home owners find are stolen when they return. Why should someone have to break into a house when they are given full access without having to identify who they are? If your home is marketed well and is easy to show by a Buyer's agent, you shouldn't have to take the risk of having a Open House!

(here's the post from Realtor message board)

We held an Open House yesterday between 12:00-4:00pm.The home was located in Pembroke Pines Florida,the area is called Silver Lakes. It`s a beauitful 4bed,3ba pool home. It`s priced to sell. It has a beautiful pool area,enclosed screened patio and the kitchen has been recently redone! The owners decided to paint the interior and place new berber carpet only a week ago. They wanted to stage the home, which was a very smart idea.

Normally, we don`t do Open Houses, but the sellers insisted. When we do an Open House we usually have Balloons placed outside as well as Large Flag that is 9`ft tall to attract potential buyers. We like to also have refreshments such as cookies, soda`s and bottled waters for people to take. It`s the little things that people enjoy when visiting an Open House or at least we thought so until yesterday.

At around 2:30 pm, a Honda Van rolls up to the front door. It was a family of 6! It consisted of the Husband, wife, two children that looked between 7 and 10, and the Grandparents.
They walked around the house, along the way the kids took a cookie and soda with them while wandering around. At one point they went upstairs to the Master bedroom one kid starts up with the other and throws the cookie at the other, leaving the cookie crumbs on the floor. The Mother and Father say nothing and continue looking at the other 3 bedrooms upstairs. My stupidity I don`t say anything.

Next, they wander down to the kitchen, where the Grandmother decides to open the refrigerator, she see`s a package of Kraft's American cheese inside the refrig and decides to take a piece without asking permission. I`m looking at this women in complete utter amazement.
Now, I`m wondering what the heck to do with this Group! They decide to look at the pool area. The kids decide to play tag outside and somehow start throwing Rocks from the Japanese garden at each other! A few of the rocks enter the pool! I start asking the kids to please stop! At this point the Father attacks me with a verbal tirade!

Father: Why you yelling at my kid?
Me: Your kids seem out of control. They`ve already left a mess for us to clean up in the Master bedroom and now the rocks. This is an Open House!
Father: Big deal! They can do what they want, Open House means that we can look at a house and do what we want!
Me: Great, now it`s time to leave.. Please go!
Mother: My Husband can buy this home for cash, we don`t need you to tell us what to do!
Me; Again, this Tour is over, we need to clean up so that others may view the home.

As this family from hell wander back inside the Kids, and Grandparents decide to each take the rest of the sodas, LEAVING NOTHING for anyone else! The 10 year old decides to pocket 3 more cookies..

A good friend came down from the Bay Area last week to visit. We rented a couple ATVs and went out on the dunes. It was about 70 degrees and hardly anyone was at the dunes. It was a BLAST! We attached a video camera to one of the ATVs and took some vids. Here's one that I uploaded to YouTube. This was my first upload to YouTube and the video quality isn't close to the original so I need to figure out the secrets on the best video formats to use.

http://www.youtube.com/watch?v=Ww0rC1yoD_M

SLO County Supervisors are voiting to restrict the number of apartments that can be coverted into condos in unincorporated areas. They plan to use a forumla that will take 25% of the number of new rental units built during a year and make that the limit on the number of condo conversations in the next year.

See the full article here

A blog reader emailed me to let me know that the Chernobyl motorcycle tour that I posted last week was fiction. Doing some checking, I found that the woman that put the motorcycle story together actually took the photos during a tour with her husband. She reportedly took the motorcycle helmet with her on the tour. So, while the photos were authentic as is the tragedy behind them, the motorcycle part was fantasy. I found the company that gives the tours here.

According to USA Today, Cal Poly is the 6th toughest university to get into in the entire country. Harvard, Stanford, and the other biggies are the other ones in the top 10. The newspaper said that only 16% of applications are given admission acceptance. Cal Poly is saying this isn't true and they accept around 36% of the applications received.

I updated the invetory reports on www.SloWatch.com today. Both the summary table and the individual city reports.

Reminder...

Property taxes due in 3 days!

From MSN Money- National Averages(APR): Low - 5.16% Average - 6.09% High - 7.17%


Tips: How to compare mortgage loans

You need to know four important features to shop for a mortgage:

The term. Usually 30 years, but 15-year mortgages have become more popular. Some mortgages have fixed rates for the entire term, some have variable rates that can change monthly or yearly, and others have a fixed rate for a certain number of years followed by a variable rate. Any prepay penalty for early pay off and what the penalty is.

The rate. You'll want to know the interest rate and the annual percentage rate (APR). The APR adds in points, fees and certain other charges, all expressed as a yearly rate to help you compare loans. If the rate is variable, ask how often it can change and how high your payments could go.

The points. A "point" is 1% of a mortgage. Typically, the more points the borrower pays, the lower the interest rate. But if you plan to sell in just a few years, you won’t recoup the upfront cost.

The fees. These include origination or underwriting fees, broker fees, transaction costs and closing costs. Many reputable lenders will give you the estimate in advance. Interest rates for a "no cost" or "no fee" mortgage will be higher.

Contact Margie @ Team Mortgage with questions about your mortgage options. 473-0309

One of the strengths that a national brokerage claims to Home Sellers is their big network of agents that can bring Buyers. Both ones in a local office and others outside the area that would refer Buyers to a local office. I decided to run a report to see who brought the Buyers for 218 properties sold for the 3 month period from Sept-Nov in the 5-cities area.

I counted the number of agents in local offices from Century 21, ERA, Keller Williams, Prudential, and Remax which totaled 286. Of this total, only 51 agents was the Buyer agent on one or more of the 218 homes sold in the Sept-Nov timeframe.

That means 235 of these agents (82%) did not even have a single transcation where they represented a Buyer in the last 3 months in the 5-cities area.

If you are pitched with "big network" advantage, ask for statistics to prove the claim. Having a big network where 80+% of the network is non-producing isn't such a benefit, is it?

As a home seller, what you want to do is to make sure that your home is marketed to ALL 3000+ Realtors on the Central Coast that may have a Buyer. Having 30 agents from the local office preview your home is fine but the odds are small that the Buyer for your home is going to be found by one of them. Don't let the emphasis of the marketing of your home be on their "internal network".

Last night, I sent out my first Central Coast Sales Report for the month of November to those that signed up. Thanks for all the positive feedback you've given me about the report!

If you'd like to sign up, go here and I'll send you the November report too.

http://www.slocountyhomes.com/real_estate_market_reports.htm

I received something in the mail from a Realtor advertising "vacation rental" homes in Pismo Beach. The problem is that most the homes they had on the list were not in the approved area for vacation rentals.

If you are looking at investing in a property you plan to use for short-term rentals, make sure you check with that City to get any restrictions they have.

Central Coast MLS Statistics - November 2006
Residential, Slo County plus Santa Maria/Orcutt

New Listings - 538
Back on Market - 205
Price reductions - 728
Price increases - 40
Contingent - 41
Pendings - 384
Solds - 301
Expireds - 404
Inactives - 335

I updated the graph on the Slo Watch statistics page. It looks like things are calming down. Although we had the lowest number of Pending Sales in November than we've had since I started keeping the statistics, the number of new listings also decreased. The number of expireds, cancellations, and temporarily off market are high which helps get some of the over-priced homes off the market.