SLO County Quarterly Median Condo Price

(click graph for larger display)

SLO County Quarterly Median Home Price

(click graph for a larger view)

Providing Care for Your Aging Parent(s)

This past week has been pretty chaotic in the Byrd household. I got a call last Monday night that my mom had died. She was going to be 90 this year (my dad's 86 with dementia). We've been trying to keep them in their home in the Bay Area as long as possible but knew we were going to need seek care facilities when they couldn't safely take care of themselves. Since my brother lives on the Central Coast, it made sense to move them down here so we've been looking at care facilities for awhile. It also helps that my oldest daughter recently went through psychiatric technician training at Cuesta/Atascadero State Hospital. The technicians spend time working in the different care facilities in the area and she knows which ones are good and the not so good ones too.

My dad is now a resident (as of this past Monday) at Sydney Creek, a mental care facility in SLO. I'd like to say that the folks at Sydney Creek have been really great with the transition for my dad and our family.

The other item I wanted to note was that my parent's Living Trust helped a lot with all of this. Without it, the process would have been a lot more complex.

I'm also going to go look at long term care insurance. We got a sticker shock when we found out how much it costs for elder care.

Fast Internet in SLO???

Would you like to see 100 Mbps+ broadband service in San Luis Obispo? If you missed today’s rally at Mission Plaza in downtown SLO, you still have time to go to the Google Fiber for Communities site and nominate SLO as a beta test site: www.google.com/appserve/fiberrfi/public/options. Google is planning to build and test ultra high speed broadband networks in a small number of trial locations across the United States. It will deliver internet speeds of more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber-to-the-home connections. That is fast! I believe this will help attract more people and new businesses to San Luis Obispo and ultimately be good for our real estate market. Let’s show the world that great things can happen in San Google Obispo!

Mary Anne Lodato
San Luis Obispo Realtor
(805)235-3795
Lic #01718125

Price Change Report Not Working

The Price Change and Dropped Listing reports aren't working right now and I've contacted the programmer. I'll blog when they are healthy again.

Rate Update and Broker Misconceptions

Treasury auctions contained very few surprises, and economic data was light, leaving mortgage rates nearly unchanged last week. The big question remains, what will happen to mortgage rates when the Fed's mortgage-backed security (MBS) purchase program ends March 31st? The MBS program is unprecedented, making the outcome difficult to predict. Some argue that any rate increases would be modest as the Fed has been gradually reducing the size of purchases, and has telegraphed the end of the program for months. The argument for higher rates rests largely on basic supply and demand. The added demand resulting from the Fed's intervention pushed mortgage rates lower, and a decrease in demand will naturally lead rates higher. Currently, the 30-Year Fixed sits at 4.625% (4.804% APR) and the 15-Year Fixed is at 4.000% (4.307% APR). The Fed will meet next week, with no change expected for the fed funds rate. The most significant economic data will be the monthly inflation reports. The Producer Price Index focuses on the change in the price of "intermediate" goods used by companies to produce finished products. The Consumer Price Index looks at the price change for those finished goods which are sold to consumers.

Here are some common misconceptions about brokers...

Brokers don't have to be licensed. This is simply wrong. Mortgage brokers in California are governed by the California Department of Real Estate, and are required to obtain a real estate license, as well as complete periodic education courses to maintain their licenses. Under the new SAFE Act mortgage licensing system, all mortgage brokers must register with the Nationwide Mortgage Licensing System, and complete additional testing as required by the newly formed California Department of Financial Institutions. By comparison, federal and state chartered banks are not subject to state licensing requirements and therefore do not need to have their loan officers licensed.

Brokers have no decision-making power. This is also wrong. Brokers are armed with the same tools as the banks in terms of underwriting and qualifying a borrower for a home loan, on the spot. Brokers have access to the same automated underwriting systems that most banks do. This allows brokers to obtain the same instant approvals in-house without needing to ship the file to the bank.

Brokers are financially unstable. Banks love to portray all mortgage brokers as fly-by-night operations that don't have the capitalization or stability to be a direct lender. This can be true in some cases. However, there a many brokers that are well established, have long track records of success, are well capitalized and have made the choice to stay a broker.

Brokers are a rip-off. Consumers are conditioned to believe that eliminating the middle-man always yields the best deal. Successful marketing efforts by Costco and other discount wholesalers have led consumers to loathe paying mark-ups and dealing with middle-men. In the mortgage arena, brokers are the discount wholesaler. Brokers actually receive wholesale rates that are below the market that banks offer because they are responsible for their own overhead. A well-managed mortgage broker will be able to pass these discounted rates on to you, the consumer.

Central Coast Lending, Inc.
(805) 543-LOAN
info@centralcoastlending.com

MORRO BAY UPDATE

-The Harbor Dredging is completed! The piping is now off of the beach and the last of the equipment has been removed.
-Upgrades to the Del Mar Dog Park have been completed. This park offers an "Off Leash" Area.
-Looks like the Morro Bay Library is going to be expanding its reading and children's areas. When the Libray was built in the mid 80's, Morro Bay did not have its Community Center so some of the library was used as a meeting space for community groups. Since the city is now renewing the Library's lease- it seems the time to address this change.
-The City Council is looking into writing an Ordinance to allow a Medical Marijuana Dispensary. Morro Bay previously did have one, and to my knowledge, it worked out well- until the Federal Government shut it down.
- Coming Soon: The Morro Bay Rock to Cayucos Pier Run will be held
April 17!


LYNN BATES, NORTH COAST REALTOR INCLUDING MORRO BAY, CAYUCOS, LOS OSOS AND CAMBRIA. 805 458-4409. KEITH BYRD'S REAL ESTATE TEAM

World's First Motel to be Auctioned

The Motel Inn in San Luis Obispo, the very first motel in the world, is planned to be auctioned off due to a default on the loan. Actually, it's not the motel that will be sold but the lot as the motel was torn down years ago.

How to Stop a Toyota Prius

Having a 2007 and 2009 Toyota Prius, the recent story about the guy in San Diego with a stuck accelerator has made me think. Now there seems to be some controversy about the guy who reported this and some are saying it's a "bubble boy" type incident.

Here's a video on a guy who shows how easy it is to stop a Prius

Lose an Hour of Sleep This Sunday

It's that time of year again when we move the clocks FORWARD an hour on Sunday at 2 AM (late Saturday night).

Light, Bright and Airy Home Staging Tips

Happy Tuesday! Today I am going to share about the importance of properly preparing your house for sale in a tough market! I had the honor of staging a home recently, that sold in 3 hours! That's right... 3 hours! Of course not every home is going to do that, but in this market its impressive when houses sell in 3 weeks! Here is what we focused on to make it look great!

• Neutralizing past occupant's style choices, like bright wallpaper, and choosing warm neutral paint tones instead.
• Updating simple items like drawer pulls and faucet handles , seems small but can make all the difference.
• Properly arranging furniture so that rooms maximize living space and show off the view.
• Utilizing all the natural light possible, and lighting dark areas.
• Giving every room a unique purpose. People don't need 3 kids play rooms, showcase one as a formal dining room, or an exercise room, etc.

Happy Home Selling! It can be done in this market, but you need to pay attention to the details, if you want to sell quicker and for a good price in this market. - Shannon

If you have more questions or would like to contact me directly please email me at: shannon@LightBrightandAiry.com or visit my website: www.LightBrightandAiry.com

Rate Update and HARP Extension

Generally weaker than expected economic data resulted in slight improvement in mortgage rates this week. January Pending Home Sales fell 7.6%, far below the forecasts for a small increase. The expected surge in sales from the extended and expanded homebuyer tax credit has yet to materialize so far. This decline adds to evidence the housing market is struggling to rebound after reports released the week prior showed large decreases in New and Existing Home Sales. The National Association of Realtors suggests that we may still see a pick-up in sales as buyers rush to take advantage of the tax credit before the April 30th deadline. The Fed's Beige Book report showed the economy plodded along with slow growth, but remains hampered by soft labor markets and a weak commercial sector. The employment report proved to be the lone bright spot last week as less jobs were lost than expected and the Unemployment Rate remained unchanged from January at 9.7%. Currently, the 30-Year Fixed sits at 4.625% (4.804% APR) and the 15-Year Fixed is at 4.000% (4.307% APR). Do not expect much change this week as Retail Sales and $74 billion in Treasury auctions highlight an otherwise light economic calendar.

The Federal Housing Finance Agency, overseer of Fannie and Freddie, announced the Home Affordable Refinance Program (HARP) will be extended to June 30, 2011. HARP is part of the Making Home Affordable Program, and is designed to expand access to refinancing for otherwise qualified borrowers who cannot obtain more affordable mortgages because of a lack of equity in their homes. This means that Fannie's Refi Plus program and Freddie's Relief Refi program, originally set to expire on June 30th, will be extended for one more year. In case you forgot, the Making Home Affordable Program was made possible by $75 billion in stimulus funds aimed at helping 9 million homeowners avoid foreclosure. This refinance initiative allows underwater homeowners to refinance up to 125% of their home's value with no monthly mortgage insurance. Borrowers are also allowed to re-subordinate existing 2nd liens and equity lines. No cash out is allowed on this program, and lender closing costs are limited to ensure maximum benefit for the homeowner. Some clients may also qualify for more relaxed documentation requirements. Contact your mortgage professional to see if you qualify.

Central Coast Lending, Inc.
(805) 543-LOAN
info@centralcoastlending.com

Study Says Zillow's Price Estimates are Overvalued

A study by an Appraiser organization says that 80% of the houses they sampled in Zillow were at least overvalued by 1%, with the average overestimation of 11.66%.

Read the study here

MotionZ in Santa Maria Closing

MotionZ, a kid-friendly laser tag business in the Santa Maria Town Center, is closing at the end of the month. Sadly, this was one of the few kid-friendly places on the Central Coast. No roller rink, no ice skating rink. Now just a few bowling alleys, a rock climbing gym, a few public swimming pools, and one mini-golf available year round. In the summer, the water park in Paso Robles is an option as are the Mustang water slides at Lopez Lake.

New Pismo Beach Vacation Rental Ordinance

In February, the Pismo City County approved a new ordinance regarding vacation rentals.

Here are some of the requirements to operate a vacation rental.

- There has to be someone that lives within 25 miles of the rental that is available 24 hours a day to deal with complaints regarding the vacation rental. This person must respond within 3 hours after contact has been made.

- The vacation rental owner needs to notify owners and residents of any property within 100 feet of the vacation rental that they are using the property as a vacation rental and the phone number of the local contact person.

- Any advertising of the vacation rental needs to include the Pismo Beach vacation permit number in the advertisement.

- The permit is considered to be personal property so it does not go with home if the property is sold.

Read the ordinance here

Open House Warning

A few days ago I blogged about the risk of doing Open Houses these days. Minutes ago I received an email alert from my Realtor Association that an agent had her laptop and camera stolen and thinks it's a couple in their 50's that came to her Open House that stole it.

URGENT CARE IN MORRO BAY

Morro Bay now has an Urgent Care Facility!

It is located at 783 Quintana Road, off of Morro Bay Blvd, next to the Burger King, across from the Albertsons.

The care facility is open Monday-Saturday 9 a.m.- 6 p.m. and 10 am - 1 pm on Sundays.
Eric N. Sorensen, M.D., is the Medical Director/Owner.

Hopefully in the near future- it will be open 24/7, since the hospitals serving the North Coast of San Luis Obispo County are located in San Luis Obispo and Templeton.

LYNN BATES, C-21 HOMETOWN , KEITH BYRD'S REAL ESTATE TEAM 805 458-4409.
NORTH COAST REALTOR INCLUDING MORRO BAY, CAYUCOS, CAMBRIA & LOS OSOS.

Del's Pizzaria - Shell Beach

This month is when Del's Pizza in Shell Beach celebrates their anniversary. Through this Sunday you can get a large 2-item pizza for $10.99. There are other specials the remaining 3 weeks.

I seem to only go to Del's when they have this pizza special and I really do like their pizza. I'd probably go there more but never see any coupons from them any other time of the year. Paying full price for a pizza at most restaurants these days just seems like way too much money. Don't most pizza places set their prices assuming you're going to use a coupon???

Cabo San Luis Building Fire

The Cabo San Luis restaurant near the corner of Foothill and Santa Rosa in SLO was victim of a fire today. It destroyed the restaurant and damaged other businesses in the complex, including Kona's deli.

Didn't the Burger King that was the first tenant in that complex have a fire too?

FORCLOSURE MIX OF NORTH COAST HOMES

FEBRUARY SALES

MORRO BAY
REO'S: 25%
SHORT SALES: 0%
NON-FORCLOSURES: 75%
TOTAL # OF SALES: 8

CAYUCOS
REO'S: 50%
SHORT SALES: 50%
NON-FORCLOSURES: 0%
TOTAL # OF SALES: 2

CAMBRIA
REO'S: 40%
SHORT SALES: 10%
NON-FORCLOSURES: 50%
TOTAL # OF SALES: 10

LOS OSOS
REO'S: 38%
SHORT SALES: 12%
NON-FORCLOSURES: 50%
TOTAL # OF SALES: 8

LYNN BATES, KEITH BYRD'S TEAM, 805 458-4409
NORTH COAST REALTOR INCLUDING MORRO BAY, CAYUCOS, CAMBRIA & LOS OSOS

Foreclosure Mix for February Homes

SLO County-

154 Home Sales in February 2010

REO - 26%
Short Sale - 18%
Non-foreclosure - 56%


Santa Maria/Orcutt-

78 Home Sales in February 2010

REO - 44%
Short Sale - 24%
Non-foreclosure - 32%

Residential Inventory Rising

The inventory for homes and condos rose in SLO County and Santa Maria/Orcutt over the past month (see charts below).

For individual cities, San Luis Obispo saw the biggest increase (from 176 to 210). Cayucos had the biggest percentage increase going from 38 to 47.

Cambria had the largest decrease, from 111 to 105.

See all city inventories here -
http://www.slowatch.com/inventory.htm

(click image for larger graph)

February 2010 Residential MLS Statistics

Pending Sales rose a bit from the 2 year low last month but barely made 400 for the month. For comparison, we had 496 Pending Sales last February. Solds were down but that's not surprising because of last month's Pending Sales.

February 2010
Includes SLO County + Santa Maria/Orcutt
(Last months data is also included - February (January)

New Listings - 552 (595)
Back on Market - 227 (282)
Price Changes -530 (469)
Contingent - 280 (275)
Pendings - 404 (364)
Solds - 263 (267)
Expireds - 150 (422)
Inactives/Withdrawns - 135 (181)

Go to www.SloWatch.com for more February 2010 stats

United E-fares

I recently returned from a trip to Denver to see my college roommate. I used United e-fares and cost me $80 each way from Santa Maria (SLO was $95 plus parking).

The United efares are for travel on Saturday and returning Monday or Tuesday. The specials change every week so and you can only purchase tickets 2 weekends in advance but they are a good deal.

http://travel.united.com/ube/efares/us/eFares.do

NARs Commercial Real Estate Prediction

The National Association of Realtors forecasts that the commercial real estate market will not recover until 2011. Here are specific forecasts:

Multifamily Market

The apartment rental market – multifamily housing – is poised to gain from a rise in household formation. Multifamily vacancy rates are likely to decline from 7.4 percent in the fourth quarter of last year to 6.6 percent in the fourth quarter of 2010, and possibly edge down to 6.1 percent next year.

Office Market

With a lot of sublease space currently on the market, vacancy rates in the office sector are forecast to rise from 16.3 percent in the fourth quarter of 2009 to 17.6 percent in the fourth quarter of this year; the longer term outlook is for vacancies to average 17.4 percent in 2011.

Retail Market

Retail vacancy rates are expected to edge up from 12.4 percent in the fourth quarter of 2009 to 12.7 percent in the same period of this year, and may hold at that level in 2011.

Read the entire article here

Is it Time to Stop Open Houses?

I was reading a message thread on a Realtor message board about Open Houses. The question raised is if it's time to stop doing Open Houses. Here are the reasons why it may be time:

1) In the 70's, 80's, and 90's, Open Houses were a way Buyers went looking for houses. Today, around 1% of Buyers find their homes through an Open House.

2) Open Houses are a risk for homeowners that someone is going to steal items from the home. If you go to an Open House, the Realtor usually says to the visitors "feel free to look around" and sits on the couch. Even if the Realtor follows people around, people intending to steal work in groups and don't stay together in a Open House.

3) Open Houses are a security risk for the Realtor sitting at the Open House. Some agents will not do Open Houses alone anymore.

Most everyone agrees that Open Houses are done to show the Seller that the agent is "doing something" to try to sell their home. Since most Realtors don't have a strong marketing service, they need something to try to justify their commission.

Rate Update and Cash-In Refis

In a relatively light week for data, the Fed's unexpected moves pushed interest rates higher. On Wednesday, the Fed released the detailed minutes from the January 27th meeting which revealed that several Fed officials favored starting the sale of the Fed's mortgage-backed securities portfolio "in the near future." On Thursday, the Fed announced an increase in the discount rate, the emergency rate at which banks borrow money from the Fed. The Fed made clear that this in no way reflected a change in broader monetary policy or its economic outlook. Another blow to the mortgage market occurred when we learned that China fell behind Japan to become the second-biggest holder of US Treasuries. China was a net seller of Treasuries by $34 billion bringing its total holdings down to $755 billion from $790 billion in November. While these unanticipated events applied upward pressure on mortgage rates, the scheduled inflation data bucked the week's trend with low levels of current inflation, putting no immediate pressure on the Fed to take action. Currently, the 30-Year Fixed sits at 4.750% (4.929% APR) and the 15-Year Fixed is at 4.125% (4.432% APR). This week we will see New and Existing Home Sales figures, Gross Domestic Product, Consumer Confidence and Fed Chief Ben Bernanke is scheduled to speak on Wednesday.

According to Freddie Mac, cash-out transactions comprised 88% of the total refinance loans originated in 2005. This statistic means that nine out of ten refinance borrowers were increasing their loan balances! The purposes for cash-out refinances included home improvement, transfer-of-equity to acquire more real estate, debt consolidation, and one can't forget about frivolous purchases. Thankfully, that trend of cashing-out home equity has moved in the opposite direction. The report points out that cash-out refinances have retreated to a mere 27% of all refinance activity. In fact, a review of Freddie Mac's most recent survey will show that one third of home owners put cash into their refinance in 2009, the highest percentage on record. Many home owners are choosing to pay down loan balances in order to qualify under more stringent lending standards, or simply due to a lack of other attractive alternatives. They might also be thinking of the future value of a sub-5 percent mortgage rate for the next 30 years. Regardless of your reasons, the cash-flow savings secured now will undoubtedly result in thousands of dollars of savings for years to come.

Central Coast Lending, Inc.
(805) 771-9870
info@centralcoastlending.com

Article in Tribune

Here's a link to an article in today's Tribune where you may recognize one of the people quoted in it :)


http://www.sanluisobispo.com/2010/02/21/1037946/turnaround-may-be-near-for-san.html

Man Bulldozes Home Before Foreclosure

I've seen some pretty gutted REOs but never heard anyone destroying a home before the bank took it.

http://www.wlwt.com/news/22600154/detail.html

Another CraigsList Rental Scam

A blog reader sent me a Craigslist ad for a 3 bedroom in SLO that is renting for $800. No contact info is on the ad other than the anonymous reply-to email address.

Be careful if you find something that sounds too good to be true like this rental. I don't know if you respond to it what you'll get back but it will probably be something that tries to get you to send a deposit to secure this rental.

BE CAREFUL OF CRAIGSLIST SCAMS!!