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29
Aug

CCL Market Update

New Home Sales

New homes sales are up a monthly 12.4 percent to an annualized rate of 654,000. A small offset is a modest 10,000 downward revision of June which is now at a rate of 582,000, May remains the same unrevised at 572,000. The surge in sales can be explained by the seller discounting, as the median price fell 5.1 percent to $294,600. The yearly price is suddenly in the negative column at minus 0.5 percent, confirming other reports that price is soft. Lack of supply is becoming even more of an issue for housing. New homes in the market fell 7,000 in the month to a level of 233,000 with monthly supply falling to 4.3 months at the current sales rate from 4.9 months in June and a reading of 5.2 months a year ago. Though housing data has been moving higher it is not moving uniformly; starts and permits data have been bumpy as has construction spending. But this report shows data moving to cycle highs.

Mortgage Applications

Mortgage data is pointing to a slowing for home sales. Purchase applications slipped 0.3 percent in August 19 week and are at a new low for the year. At 8.0 percent, year on year growth is no longer in the double digits.

FHFA House Price Index

As mentioned above home sales are increasing and appear to be getting a lift from seller discounting. For the second month running, the FHFA house price index is up an unusually weak 0.2 percent. The yearly gain for June, which had been at 6.0 and 6.3 percent, as recently as April and March, is now at 5.6 percent.

Existing Home Sales

Prices are coming down, but sales aren’t going up for the month of July. Sales of existing homes have slowed to an annualized rate of 5.39 million which is below the low end of economists’ expectations and down 3.2 percent on the month. The yearly rate has been slowing and is suddenly in the negatives at minus 1.6 percent. The median price fell 1.4 percent to $244,100, the yearly rate is at plus 5.3 percent . Single-family homes are not a positive in this report but they are when compared with condo sales. Single family home sales fell 2.0 percent to a 4.82 million rate with condo sales down a sharp 12.3 percent to a 570,000 rate. Compared to a year ago single family home sales are in the negative column at minus 0.8 percent vs. an 8.1 percent decline for condos. The weakness in sales is a plus at least for supply which still remains low and is a key factor in holding down sales. Supply on the market rose 2.13 million from 2.11 million in June.

Jobless Claims

Historically low levels of layoffs continue to underscore the strength of the US labor market. Initial claims slipped 1,000 in the week of August 20th to 261,000 with the four week average down 1,250 to 264,000. Continuing claims in lagging data for the week of August 13th are down a sizable 30,000 to 2.145 million, the four week average is unchanged at 2.155 million. The unemployment rate for insured workers is at 1.6 percent, only 1 tenth off the all-time low. The August Jobless claims reports are only marginally above where they were in July, where they averaged 255,000

GDP

Second quarter GDP came in soft at only plus 1.1 percent annualized rate for the second estimate following even softer rates in the prior two quarters of 0.8 and 0.9 percent. Consumer spending, however, was very strong at 4.4 percent annualized growth rate, 2 tenths higher than the first estimate. Inventory is pulling down GDP by a steep 1.3 percentage points. But lighter inventory in times of slow economic growth is a positive for future production and employment. Residential investment in the second quarter fell at a 7.7 percent annualized rate. Strength in new home sales points to a rebound for the reading in the third quarter. The largest disappointment in the quarter was yet another decline in nonresidential fixed business investment which points to business caution and continuing problems ahead for worker productivity.

Consumer Sentiment

Consumer sentiment remains steady at 89.9 for the final August reading, a 6 tenths dip from the mid-month report and a 2 tenths dip from the final July data. The expectations component moved higher in the month to 78.7 which may be an indication of confidence in the jobs outlook. Current conditions are hinting at marginal softening in the current jobs market, it is down 2.0 points to a still solid 107.0. Inflation readings are especially weak in the report reflecting in part this month’s downturn in gas prices. One year expectations are down 2 tenths to 2.5 percent with the five year outlook down 1 tenth at 2.5 percent as well.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
805.543.LOAN info@centralcoastlending.com
29
Aug

CCL Market Update

New Home Sales

New homes sales are up a monthly 12.4 percent to an annualized rate of 654,000. A small offset is a modest 10,000 downward revision of June which is now at a rate of 582,000, May remains the same unrevised at 572,000. The surge in sales can be explained by the seller discounting, as the median price fell 5.1 percent to $294,600. The yearly price is suddenly in the negative column at minus 0.5 percent, confirming other reports that price is soft. Lack of supply is becoming even more of an issue for housing. New homes in the market fell 7,000 in the month to a level of 233,000 with monthly supply falling to 4.3 months at the current sales rate from 4.9 months in June and a reading of 5.2 months a year ago. Though housing data has been moving higher it is not moving uniformly; starts and permits data have been bumpy as has construction spending. But this report shows data moving to cycle highs.

Mortgage Applications

Mortgage data is pointing to a slowing for home sales. Purchase applications slipped 0.3 percent in August 19 week and are at a new low for the year. At 8.0 percent, year on year growth is no longer in the double digits.

FHFA House Price Index

As mentioned above home sales are increasing and appear to be getting a lift from seller discounting. For the second month running, the FHFA house price index is up an unusually weak 0.2 percent. The yearly gain for June, which had been at 6.0 and 6.3 percent, as recently as April and March, is now at 5.6 percent.

Existing Home Sales

Prices are coming down, but sales aren’t going up for the month of July. Sales of existing homes have slowed to an annualized rate of 5.39 million which is below the low end of economists’ expectations and down 3.2 percent on the month. The yearly rate has been slowing and is suddenly in the negatives at minus 1.6 percent. The median price fell 1.4 percent to $244,100, the yearly rate is at plus 5.3 percent . Single-family homes are not a positive in this report but they are when compared with condo sales. Single family home sales fell 2.0 percent to a 4.82 million rate with condo sales down a sharp 12.3 percent to a 570,000 rate. Compared to a year ago single family home sales are in the negative column at minus 0.8 percent vs. an 8.1 percent decline for condos. The weakness in sales is a plus at least for supply which still remains low and is a key factor in holding down sales. Supply on the market rose 2.13 million from 2.11 million in June.

Jobless Claims

Historically low levels of layoffs continue to underscore the strength of the US labor market. Initial claims slipped 1,000 in the week of August 20th to 261,000 with the four week average down 1,250 to 264,000. Continuing claims in lagging data for the week of August 13th are down a sizable 30,000 to 2.145 million, the four week average is unchanged at 2.155 million. The unemployment rate for insured workers is at 1.6 percent, only 1 tenth off the all-time low. The August Jobless claims reports are only marginally above where they were in July, where they averaged 255,000

GDP

Second quarter GDP came in soft at only plus 1.1 percent annualized rate for the second estimate following even softer rates in the prior two quarters of 0.8 and 0.9 percent. Consumer spending, however, was very strong at 4.4 percent annualized growth rate, 2 tenths higher than the first estimate. Inventory is pulling down GDP by a steep 1.3 percentage points. But lighter inventory in times of slow economic growth is a positive for future production and employment. Residential investment in the second quarter fell at a 7.7 percent annualized rate. Strength in new home sales points to a rebound for the reading in the third quarter. The largest disappointment in the quarter was yet another decline in nonresidential fixed business investment which points to business caution and continuing problems ahead for worker productivity.

Consumer Sentiment

Consumer sentiment remains steady at 89.9 for the final August reading, a 6 tenths dip from the mid-month report and a 2 tenths dip from the final July data. The expectations component moved higher in the month to 78.7 which may be an indication of confidence in the jobs outlook. Current conditions are hinting at marginal softening in the current jobs market, it is down 2.0 points to a still solid 107.0. Inflation readings are especially weak in the report reflecting in part this month’s downturn in gas prices. One year expectations are down 2 tenths to 2.5 percent with the five year outlook down 1 tenth at 2.5 percent as well.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
805.543.LOAN info@centralcoastlending.com
22
Aug

New Listing! 3 Bedroom near Montana de Oro


This 3 bedroom, 2 bath home is located in a quiet neighborhood located in the heart of Los Osos – near Montana de Oro beach and trails, Sweet Springs, downtown and so much more! There is an extra bonus room that extends off of the back bedroom that opens to a private woodland back yard with a magnificent Oak Tree, and a brick pathway that extends around the perimeter of the home There is a gas fireplace in the living room where you can relax and cozy up, a brand new, walk-in tub with jacuzzi jets in the guest bathroom, and a brand new furnace providing central heating. This spacious home sits on a large corner lot with plenty of parking for your RV or boat, along with a large two car garage and storage shed. Sewer hook-up will be completed (or credited to buyer) by the close of escrow. Home to be sold as-is. Call me to tour this great home today!
Kelly Vandenheuvel 805.471.1046

Written by Keith Byrd - Go to Keith's Website/Profile

22
Aug

New Listing! Spectacular Home in Las Jollas de Rancho Grande


Spectacular entertainment home in Las Jollas de Rancho Grande! This beautiful move-in ready home is located on the east side of Arroyo Grande at the top of a quiet cul de sac. With 3200 square feet of fabulous living space, you’ll find 4 bedrooms, one being a full guest suite with private bath and balcony, 4 baths, an open great room with vaulted ceilings and fireplace, gourmet kitchen, a separate breakfast sitting room, and pool table bonus room. The backyard showcases a sparkling pool, spa and water feature that offers tranquility amongst the palm trees. Multiple seating areas are located throughout the backyard, which provides space for all your family and friends. The entrance elevator is located inside the 3 car garage and lands on the home’s main level, to allow for single level living in this two story home. This home has been impeccably maintained with pride of ownership.
Collette Kutil 805.801.8114

Written by Keith Byrd - Go to Keith's Website/Profile

22
Aug

New Listing! Mid Century 3 Bedroom Charm


Mid Century charmer with amazing landscaping. This 3 bedroom, 2 bath home oozes with charm. The centrally located kitchen features recent upgrades and has a large eating area. The master bedroom and separate bath are situated on one side of the home, while the 2 secondary bedrooms and bath have privacy on the opposite side of the house. Finishing off this lovely home is a nicely sized family room with direct access to backyard entertaining.
Wendy Teixeira 805.310.3505

Written by Keith Byrd - Go to Keith's Website/Profile

22
Aug

New Listing! This one is a Showcase-Oceano CA


Custom hand troweled walls. Layered cofferred ceilings, so much detail. Arched doorways. Built-in niches. Spectacular kitchen with high-end KitchenAid appliances. 6 burner range + wall oven and microwave. Center island with veggie sink. Butler pantry w/beverage refrigerator. Opens to fabulous great room, fireplace w/oversized mantle. Massive crown molding. Stunning light fixtures throughout. Brazilian Cherry Wood floors. Designer half bath. Master retreat with 3-way fireplace. Travertine floors and shower,dbl shower head, separate jetted tub. Downstairs entry with designer features, 18X18 tile, custom color paint. Another master suite, guest bedroom and bath and kitchenette, could be separate living quarters. Private front patio out French doors.Stairway to rooftop enjoyment & ocean views, spa, BBQ area, additional higher sitting area taking in panoramic ocean views, city, & the dunes! 2 car garage, back entry with extra parking.
Kim Bankston 805.674.2298

Written by Keith Byrd - Go to Keith's Website/Profile

22
Aug

USDA Product Updates

Upfront and Monthly/Annual Fees Decreased Effective October 1, 2016

USDA has announced a reduction in both the upfront guarantee fee and monthly/annual fee for fiscal year 2017, effective with Conditional Commitments issued on or after October 1, 2016 through September 30, 2017. Effective at the start of the fiscal year of 2017 (October 1, 2016) program fees for USDA Rural Development’s guaranteed home loan program will be significantly reduced. The upfront guarantee fee will decrease from 2.75% to 1.0% of the loan amount. The annual fee will change from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan.

USDA Lower Fees

$300K purchase price at 3.25% under old structure:

  • $308,250 loan amount
  • P&I payment = $1,341.52
  • MI payment = $127.27
  • 4.039% APR

.

$300K purchase price at 3.25% under new structure:

  • $303,000 loan amount
  • P&I payment = $1,318.68
  • MI payment = $87.57
  • 3.737% APR

For information about USDA Loans Click Here

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
805.543.LOAN info@centralcoastlending.com
16
Aug

New Listing! Beautiful Templeton Home on 6 Acres


This is a beautiful custom home on over 6 acres in east Templeton. Well built with quality construction. Large format tiles in kitchen. 4 Bedrooms and separate office. Beautiful land that can be improved in so many ways.
Cody Wilcoxson 805.748.2477

Written by Keith Byrd - Go to Keith's Website/Profile

16
Aug

New Listing! 3 Bedroom Move-in-Ready


Cute 3 bedroom, 2 bath home with original hardwood flooring, coved ceilings, lots of light and charm… Remodeled kitchen, circular driveway and a huge back yard. All on a corner lot.. Move in ready!
Wendy Teixeira 805.310.3505

Written by Keith Byrd - Go to Keith's Website/Profile

16
Aug

New Listing! 3 Bedroom 3 Bath in Morro Estates


Morro Estates. This three bedroom, 2 1/2 bath home has several projects started, it just needs your finishing touches! Remodeled kitchen with new cabinetry, appliances and lighting.. it just needs flooring and a few items to finish it off nicely. Some walls scraped, but need painting and baseboards. One bedroom needs carpeting and the master bath needs some new ideas and creativity. Great location, lovely backyard. Indoor laundry, too. Good bones!
Wendy Teixeira 805.310.3505

Written by Keith Byrd - Go to Keith's Website/Profile