Rate Update

Generally positive economic data led mortgage rates higher and boosted stocks for a third week in a row. In a surprising statement today, the National Bureau of Economic Research declared the longest US recession since the Great Depression ended in June 2009, lasting only 18 months. Hmmm… we’re guessing the 15 million unemployed Americans might disagree with that announcement. Nevertheless, continued low inflation, improving consumer spending and job numbers are leading investors back into US equities. Retail Sales climbed in August for a second consecutive month. Purchases increased 0.4% following a 0.3% gain in July. Retail Sales are an important leading indicator as consumer spending accounts for 70% of total economic activity. The Core Producer Price Index was up 0.1% and the Core Consumer Price Index was unchanged, both in-line with expectations. Jobless Claims were down 3,000 to 450,000, a 2-month low, and the 4-week moving average is also trending down. Currently, the 30-Year Fixed is at 4.000% (4.141% APR) and the 15-Year Fixed is at 3.625% (3.874% APR). The biggest story this week will be tomorrow’s Fed meeting. No change in the fed funds rate is expected, but every word and sentence will surely be dissected. Also, this week we have Housing Starts, Existing Home Sales, Leading Economic Indicators, Durable Goods Orders, and New Home Sales.

Foreclosure Price Ranges

The graph below shows the pre-foreclosure and Notice of Sales activity in August and the estimated value of the home. The bulk of the activity is still in the lower end (below the median home price for the County).

I Madonnari Street Painting Festival in San Luis Obispo

It doesn’t get much better than this! It was an absolutely beautiful weekend for the 19th annual I Madonnari festival. Each year in early September, the plaza of the Old Mission in San Luis Obispo California is transformed with colorful, large-scale street paintings created by artists and young people. The artists or “madonnari” begin working on Saturday morning of the weekend and continue drawing throughout the two-day festival. Funds raised through the festival benefit the Children’s Creative Project, a non profit arts education organization that supports arts programs in San Luis Obispo County schools. These are just a few of the pictures I took Sunday.

Foreclosure Notice of Defauts and Trustee Sales

Here’s the last 12 months of Notice of Defaults (NOD) and Notice of Trustee Sales for San Luis Obispo County.

2010 School API Test Scores

The 2010 API scores have been released for our local schools.

Here are the test results by SLO County school district.

Rate Update

Following consecutive weekly drops since the middle of June, mortgage rates rose for the second straight week. Economic data was mixed during the holiday-shortened week. Jobless Claims fell to their lowest level since mid-July and the Fed Beige Book report showed that the economy is still growing, but with “widespread signs of deceleration”. Mortgage rates have fallen substantially over the summer as weak economic data and the debt crisis in European countries led investors to reduce economic growth forecasts and invest in the safest assets, including US Treasuries and mortgage-backed securities (MBS). The current environment is still generally supportive of low mortgage rates, but some investors believe the worst-case scenario is already “priced in” to the markets. Another factor in the historic rate decline this summer was the possibility the government would provide additional stimulus to support the housing and interest rate markets, however, the political climate seems to be shifting away from additional government support. Currently, the 30-Year Fixed is at 4.000% (4.141% APR) and the 15-Year Fixed is at 3.625% (3.874% APR). This week will feature the monthly inflation reports. The Producer Price Index (PPI) focuses on the prices of intermediate goods used by companies to produce finished products. The Consumer Price Index (CPI), the most closely watched inflation report, looks at the price of finished goods. We will also see Retail Sales figures on Tuesday. Retail sales is a leading indicator and accounts for 70% of economic activity.

Sometimes, I Should Just Stick With A Good Memory

I was moving my youngest daughter back to school in Chico recently and found there was a Shakey’s Pizza in Oroville. I have fond memories of Shakeys Pizza.  There was a Shakey’s in the next town where I grew up in the Bay Area.  When I went to Cal Poly in the late 70′s/early 80′s, there was a Shakey’s in San Luis Obispo. It was on Olive Street where the Round Table Pizza is today.  Shakey’s had a lunch buffet called “Bunch-A-Lunch” with pizza, chicken, and mojo potatoes. They would put a coupon in the Telegram Tribune for  $2.35 (don’t know what the normal price was, maybe $2.75? ). Back then, I worked at the Cal Poly Bookstore and a group of us would go to Shakey’s for lunch.  They played ESPN on a TV when ESPN first went on the air and before it was on the local cable system  (Sonic Cable).  It was pretty cool to see sports I never saw before (rugby was one I remember) while chowing down on  good pizza and chicken.

So, I got excited to see a Shakey’s near Chico and decided to go there for lunch. They didn’t have Bunch-A-Lunch which was the first bummer so I ordered a salami pizza (one of my favorites).  When I got it, I felt like a little kid at Xmas. My daughter took the photo below on my phone when we got the pizza and before I took my first bite.

That’s when things went south. I took a bite and it had to be the WORST pizza I’ve had in a long time. If I was to take a guess, they no longer use the same pizza sauce and opted for a cheaper version.  What a bummer!  I go to Straw Hat Pizza in Santa Maria once in awhile and it has the same taste as I remember growing up but not Shakey’s.

I should have stuck with the memories in this case. Now I have good memories about Shakey’s…and one bad one.

SANTA MARIA/ORCUTT MARKET UPDATE 9-10-10

SANTA MARIA/ORCUTT MARKET UPDATE 9-10-10

Active Listings: 244 (REO 36) (Short Sales 71)

Pending Listings: 102 (REO 35) (Short Sales 24)

Contingent REO: 11

Contingent Short Sale: 124