Ryan’s Blog:
Too many Americans live beyond their means with credit cards and fancy cars. I’ve been known to buy nice things on my credit cards (mountain bike, video camera, etc…) so I have no room to talk. I just hate seeing bad credit scores and having to tell hard working people they don’t have “A” credit, which usually means higher interest rates and payments. It is just not fun; I wish we all had good credit! I have four suggestions/advice I wanted to share with you guys:
1 - Credit Cards are not bad; they can help raise your score, but only if you use them right. I recommend everyone have at least one but not because they are broke and need it. It is good to have a card with MORE than 50% of the balance freed up (available credit). It is good to always pay more than the minimum. If you have a card that doesn’t charge interest for 30 days, instead of paying cash, put that TV on a credit card and pay it off within 30 days.
2 - DO NOT have a 30-day late mortgage payment. If you are tight one month, pay your mortgage first before your credit cards or car. A 30-day mortgage late will lower your score faster than you can blink.
3 - Don’t finance expensive cars unless you make enough money to cover double your monthly credit card, car, mortgage payments, and other expenses; otherwise the likelihood for late payments increase, and come time to refinance, your Debt To Income (DTI) would be too high.
4 - Do not have your credit ran a bunch of times. Make sure to tell companies not to run your credit unless you agree to it and make sure it's necessary. I'm not trying to toot our horn, but our company runs your credit only once and shops up to 300 lenders based on that one report. Shopping each bank as a consumer and having your credit ran each time would not be good for your score.
I hope this helps! If you have any mortgage related questions feel free to contact me at ryan@GoMetroLoan.com or 805-540-0866.

A blog reader emailed me asking why the press says that the number of solds are down but the median home price is up.

I don't report median home price on my monthly mls statistics because I think it's misleading. One month could have more higher-end homes selling which doesn't mean that home values are increasing. On my statisitc pages, I break down the sales by price range in a city which is a better thermometer on the market trends. As a homeowner, the statistics I'm most interested in is what is happening for home types in similar neighborhoods (comparables!).

A few years ago, we had a few million dollar + homes. Now we have those homes that were sold for around a million going for multiple million. Since finding comparables is tough with higher-end homes, the value is truely what a Buyer will pay. When we have some oceanfront homes selling for $3 Million+ in a particular month, it's going to affect the median home price for the region.

Markets like the Bay Area and Southern California have thousands of sold homes that are used to calculate the median home price. On the Central Coast, the slowdown in the market has dropped us to around 250 homes. A median home price calculation with that few of homes isn't as strong of an indicator as in larger markets (or as it once was on the Central Coast when there were 800 homes a month selling).

My daughter came home from college for the weekend and brought me a bag of fortune cookie rejects from the Golden Gate Fortune Cookie factory in Chinatown. mmmmmmmmmmmm good! If you are in San Francisco, this is one stop you don't want to miss. It's on Ross Alley near the instersection of Grant and Jackson St.

One of the benefits you get from choosing a Realtor is that a Realtor has access to contracts written by the California Association of Realtors (or CAR). CAR has its own legal staff that constant is reviewing and revising the forms to help keep lawsuits from being a normal part of a real estate transaction.

In the old days (4 years+ ago), Realtors would use forms that had to be filled out with a pen. You were doing pretty good if the one filling in the form pressed down on the pen so you could read the copies.

These days, contracts are no longer printed and sold to Realtors. Access to the contracts is done through the Internet. This enables CAR to update and add forms without worrying about printing and distribution. If the CAR legal team revises a form, a Realtor uses that form the next time they login.

If you are presented one of the old forms where they tear off your copy, raise a red flag. Ask that the most updated version of that form be used instead. On the Central Coast, we access the forms from a company called "Winforms".

Ryan's Blog:
One good thing that comes from being sick is you get caught up on the news pretty quick. After watching hours of MSNBC and Bloomberg I learned one thing; no one has a crystal ball. I did gather most analysts think interest rates are going to stay where they are for a while, especially with the uncertainty of the housing market. The feds meet next week and there was a rumor they may lower rates sometime over the next 3-6 months, but I think that went out the window with this recent talk that the housing market bottomed out (that's a another topic). What I do know is that mortgage rates over the last couple weeks have slowly been rising on most programs. When I say slowly I mean maybe 1/8 percent a week (which adds up). People in an adjustable rate will back me up when they sadly see their payments rise a bit. Hope you all have a fun and safe weekend! If you have any mortgage related questions feel free to contact me at ryan@GoMetroLoan.com or 805-540-0866.

I read in today's Tribune that Chris Pontius from the Jackass movies and tv show is a SLO native. Went to school at Los Ranchos, Laguna Middle School, and SLO High. I know they filmed the tv show at the dunes but didn't know the tie to the area until today. Wow, the region is reponsible for both Chris Pontius and Zac Efron :)

Microsoft has a new map site call local.live.com. Right now, the aerial maps stop right at North Shell Beach and has nothing North of this. But, it does have Shell Beach South maps. Hopefully they will add the rest of the County as this is a pretty cool map.

I created links to a list of South County locations on this page. You can also move the map around just by clicking and dragging the map. Check it out!

Remember the new $1.2 Million listing in Paso Robles that I introduced on the Blog and my websites just 9 days ago? Well, the Seller accepted an offer TODAY.

In the last 9 days, there have been 580 visitors to the property website (www.7725sundance.com) that I created. Some agents don't receive this many visitors to their own website in an entire year!

If you're looking to sell your home in today's market, the photos and Internet exposure makes a BIG difference and the Sundance property just proves this. These marketing services are CRITICAL if you have a home where you need to reach Buyers that are out-of-the-area too. Contact me (byrd@SloCountyHomes.com) to find out how I can provide you with the same level of exposure and professional photography AND have it listed with an Agent that's local to your area. If you already have an agent in mind, that's not a problem either. I can complement ANY listing agent's service and provide the marketing piece that no other agent on the Central Coast is providing today! But, you need to contact me first before you sign a listing contract. You pay for my services only if your home sells vs. having to immediately pay for a photographer, website designer, and the Internet advertising/exposure.

I added some additional links to online home valuations at the bottom of this page. One of the links is to get a "Zestimate" from Zillow. The link I have uses a tool from an agent's website in Sacramento that I think is better than running a report from the Zillow.com site. I'm looking to having my own Zillow tool developed for the SloCountyHomes.com site.

There is no magic in these online home valuation tools. They use the SOLD information they can get their hands on and use an appraisal formula to come up with an estimated price. While the accuracy isn't guaranteed, these tools do provide another piece of info as you're doing your research. I'm including multiple online home valuations so you can compare what each report says. Usually, you'll see one that is using better comparable data. Some of the online home valuation tools use Solds that really aren't that comparable to the subject property. If you aren't using good data to start with, it doesn't matter what appraisal formula you use!

The "outage" of the online home valuation tool on my site for the last month was due to the vendor switching over to a new data source. It's supposed to result in more detailed information so they can do more analysis on the data. They tell me that there will be enhancements coming to the tool now that they have the new data.

I was reading an article on what Internet acronyms parents should know that your kids might use. These are some that I haven't heard of before:

POS - Parent Over Shoulder
PIR - Parent In Room
P911 - Parent Alert
PAW - Parents Are Watching
PAL - Parents Are Listening

It looks like my home valuation tool may be working again. I haven't heard any updates from the vendor but it looks like some of you are successfully receiving the reports. I tried an address but it didn't find it so it may not be 100% yet.

A blog reader from Santa Maria sent me the following that he recevied in his mail.

"Dear Homeowner, I have a client looking for a home in your neighborhood and I'm wondering if you are ready to sell, or have plans in the next six months? My client is pre-approved for her financing and is currently a homeowner, but does not need to sell in order to buy. She is ready to make a decision rightaway, providing the home is right for her. If you have interest in putting a deal together, please give me a call, and let's see what we can negotiate".

This could be an example of the classic "How to Generate Leads in your Farm Area". Does this agent really have a buyer interested in a home in this neighborhood? Or as our Blog reader says "I assume one would call the broker - the mysterious woman would have found a place, and you would then have the broker wanting to list your home and promise another excited buyer soon!!!!" Not saying what the Buyer is looking for in the home that is "right for her" does make you wonder if there is such a Buyer. I hope there is really a Buyer as the Realtor Codes of Ethics says you need to be truthful in your advertising.

Ok, let's believe that the agent does have this wonderful Buyer that has enough wealth to own 2 houses. If you were really interested in selling your home, wouldn't you want to put it on the market and see if there other Buyers out there rather than doing a negotiation with just one party?

Also, I wouldn't have one agent represent both the Buyer and Seller in negotiations. One of the reasons you hire a professional Realtor is to represent YOU. How can you be sure that you are getting the best representation when the agent also has a fidiciary responsibility to represent the other party in the transaction too? If they favor one party in the transaction, the Realtor could get sued. But, it's a risk some Realtors will take since they see that big commission paycheck for "double-ending" the transaction.

In this market, a seller's motivation may result in a good deal.

Check out this listing. Today it had a $100,000 price reduction to $779K. It started out on the market last January at $1.3 Million. It's located in Arroyo Grande.

I don't know if there is a reason why it's priced so low now but if you're looking for a potential bargain, I'd check it out! I don't think it will be around long at this price.

Being a Realtor, I get all sorts of emails trying to sell me things. Everywhere from postcard mailing services to email lists to purchase so you can SPAM people (ugh!).

The real estate magazines are sending more emails these days solicting business. What's interesting is that their messages have changed. They no longer talk about how you need to advertise a property so Buyers will see it. Their message these days is that you need to advertise as this is how Buyers and Sellers choose an agent. I guess even the magazines are now admitting the use of the Internet as the way people are searching for homes these days.

So, if you have an agent that is using magazines as their primary marketing service, you need to ask yourself if this is really helping find a Buyer for your home...or just promoting the agent and brokerage. It's the money that the Seller is paying in commissions that is paying for these image ads.

People ask me all the time, “where are the rates at?” I wish I could instantly spit out an accurate number for them but I can’t. I don’t want to mislead anyone like some of these online ads are doing when they say that the average 30-year fixed is at 5.5%. They are leaving out the fact the rate is based on the “perfect” borrower. Every borrower’s scenario is different (Credit Score, Loan to Value, Equity, etc..) and lenders base what they offer off of that. If these people are asking me for small talk, I will engage with pleasure. If they are asking to see if I think rates are going up or down, I will gladly tell them my opinion. But if they are asking me because they want an exact number I hope they meet me half way and give me a brief synopsis of their situation so I can give them a rough estimate. I hope people understand I’m just trying to be honest and not mislead anyone. If you have any questions related to mortgages feel free to contact me at 805-540-0866 or ryan@GoMetroLoan.
P.S. I want to thank Keith for letting me contribute to this terrific blog.

I’d like to introduce Ryan Baker as a new Guest Blogger. Ryan is a Mortgage Specialist for Metro Loan and I’ve asked him to give some insight and information about the mortgage industry. It is so important to find out the price range that you can afford BEFORE you start house hunting so you don’t set wrong expectations of the home you can purchase. Please welcome Ryan to the Blog! Ryan can be reached at 805-540-0866 or at ryan@GoMetroLoan.com.

Looks like the delay in filming the Lindsay Lohan movie at SLO High School was due to something more than her appendix surgery. News was just released that she checked herself into rehab....

Bay Area home prices flat, slow sales

Bay Area home prices were flat last month while the sales pace was the slowest pace in a decade, a real estate information service reported today.

Read the article here

There is a chart at the end of the article that breaks down December stats for each Bay Area County.

Check out this new Paso Robles listing-

http://www.7725sundance.com/

The Listing Agent is one of the agents on my SloCountyHomes.com team. I'll be announcing my new listing service soon. In it, I complement a local Listing Agent by providing the photography and Internet marketing. This will fill the void in most Listing Agent's service as they may have 20 years of real estate selling experience but 0 years of technology and Internet expertise. Since the Internet and computers has taken over the way real estate is searched for these days, without stunning photos and a way to get your home seen on the Internet, you are not getting "full service".

If I was selling a home in today's market, having my home presented in such a way to "Wow" Buyers would be my highest priority, expecially if I had a higher-end home looking for those hard-to-find Buyers.

In Sunday's paper, the Tribune listed the top baby names in 2006 taken from birth announcements from Sierra Vista Hospital (SLO), Twin Cities (Templeton), and Marian (Santa Maria). Here they are with (alternate spellings):

Girls-
Hailey (Haylee, Hayley, Haylie)
Chloe (Kloe)
Emma
Kamryn
Riley (Rilie)
Ashlyn
Brooklyn
Emily
Kylee
Kara
Mackenzie
Samantha
Sofie
Taylor

Boys-
Aiden (Aiden, Ayden)
Cody
Alan
Benjamin
Braden (Braydon)
Cameron (Kameron)
Gavin
Isaiah (Isiah, Izayah)
Jared (Jarod)
Logon
Mason
Oliver
Tyler
Vincent

As of January, 4 of the 6 MLS Associations on the Central Coast have adopted the same set of MLS Rules and Regulations. The Associations with a common set of rules are Santa Maria, Pismo Coast, San Luis Obispo, and Scenic Coast. The two Associations that did not choose to use the common set of MLS rules is Atascadero and Paso Robles.

What does this mean to a Home Buyer and Seller?

Well, it effects the "politics" of buying or selling real estate on the Central Coast. The 6 separate associations agree to cooperate and use a common MLS system. This means a member of one association can see and sell properties listed by a member of another association. What gets more complicated is if a member of an association lists a property in the boundaries of another association. For example, a Realtor that is a member of the Scenic Coast MLS (North Coast) can list of property in San Luis Obispo BUT the listing agent must follow the rules of the SLO Association.

Before there was a common set of rules, each Association had their own rule set and interpretation of the rules. I ran into problems when something that I could do to market a property in Pismo Beach, I could not do in San Luis Obispo.

With 4 associations having common MLS rules, it should help reduce inconsistencies. Since Atascadero and Paso Robles have their own set of rules, I'd be cautious if you use a Listing Agent that isn't a member of the MLS Association where you home is located in.

This is my 600th Blog post! Just wanted to say that...

I read a survey about blogs and they said that the average blog has less than 12 posts a year. More and more blogs are becoming "Dead Blogs" meaning they haven't been updated for a long time. I think alot of people start a blog but then realize how hard it is to keep updating it.

Blog On!

Housing market pain not revealed by stats

Home sellers are crying but the data doesn't seem to reflect their woes.

Read article here

Things are changing in downtown San Luis Obispo. No longer will you get off the freeway on Marsh Street and then smell the barbeque at Old Country Deli. Well, at least in 30 days. The Deli was given notice that their lease would not be renewed. Elsewhere, McCarthy's Pub and Mo's Smokehouse will soon be moving too. The building owner plans to do earthquake retrofitting and will raise the rent to a level that Mo's isn't willing to pay. The owner isn't giving McCarthy's an option to move back but rumour has it that McCarthy's is negotiating a lease with the owner of....the building where Old Country Deli is vacating in 30 days!

And speaking of earthquake retrofitting. the building where Woodstock's Pizza and Kennedy Fitness is currently in (Osos and Higuera) is ranked as the most unsafe building in SLO if an earthquake hit.

After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, while new-home sales should turn around by summer, according to the latest NAR forecast. David Lereah, NAR’s chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. “We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation,” he said. “We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it’ll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward.” Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007. New-home sales in 2006 should tally 1.06 million, the fourth highest on record, with 957,000 projected this year.

Zillow.com continues to be a site that a lot of Home Buyers and Sellers check to see what Zillow says a home is worth. I decided to look at the Solds since the first of this year and see what Zillow says is the value.

Of the 33 properties I received Zillow estimates on, 16 were over the sell price of the home and 17 were under. Some of the property sold prices were close to the Zillow estimate while some others were way off.

I guess this just shows that Zillow is a place to go to get another piece of information but isn't ready to be a single source of info.

Check out the Just Sold report with Zillow Estimate comparison here

Today is the last day to try out the ice skating rink in Atascadero. I took this photo yesterday and it sure looked like everyone was having lots of fun. I think it's open until 10 tonite....

An update on my Home Valuation service....

My vendor says that they will have the home valuation working again by Monday. It will look the same as before when it comes back online but they are supposed to be adding more features to it shortly. They say it will be worth the pain of not having it work the past 4 weeks. I HOPE SO!

What Is This??

I thought I'd give you all a way to test your Central Coast knowledge. If you think you know what this is or need another clue, click here.

I reran the inventory reports and included Condos and PUDs. You can view the individual city reports here.

Oops....

If you looked at the latest inventory report, you'll see a difference between the summary numbers on the slowatch.com page and the individual inventory reports for each city. I didn't include condos and PUDs in the individual city reports which is why the inventory numbers are lower. I'll need to rerun the individual city reports again and update those reports...

I also updated the inventory statistics on the SloWatch page. The inventory levels for single family homes have really dropped in some cities. In less than a month, Arroyo Grande dropped from 256 homes to 212.
Pismo Beach dropped from 97 to 77.
Morro Bay 104 to 91.
San Luis Obispo went from 181 to 170.

Cayucos was the only city to have increased inventory, from 36 to 38 homes.

Central Coast MLS Statistics - December 2006 - Residential

New Listings - 393
Back on Market - 247
Price changes - 463
Contingent - 39
Pending - 310
Sold - 292
Expired - 534
Inactive - 250

The graph is updated on the SloWatch page.

I'll be updating the monthly MLS statistics shortly and posting them on the www.SloWatch.com page.

I did run a report on my 2006 web site statistics. Between my 2 main sites, SloCountyHomes.com and LocalLinks.com, I had a total of 218,535 *unique* visitors in 2006! My blog had 24,293 visitors for the year.