What a busy few weeks. The Dow and S&P reached multi-year highs, breaking the “psychological” barrier of 14,000 and 1,500 respectively, as the market took off. Stocks fed on solid employment and housing news. Momentum was enough to overcome the tepid January 2013 employment report and the surprising GDP news – that the U.S. economy had contracted during the fourth quarter (if you follow the link we provided, you will find out why the news isn’t as bad as you might think).
Through all of this stock news, mortgage rates jumped, and jumped again, as investors left the low-yielding U.S. Treasury bond market for greener pastures. Then, to begin the February 4 week, stocks cooled off and mortgage rates dropped back slightly. Nothing major here, but it was a welcome break from the upward pressure. For a complete recap of mortgage rate movement in January (it was all over the map), click HERE.
On a more local news level, we have published our feature of the real estate market in San Luis Obispo County for 2012 and 2013 (Link: San Luis Obispo County real estate overview: 2012 recap, 2013 outlook). We found that the market took several important steps towards a long-lasting recovery in 2012. In this report, we will explain the reasons why. We break down home price and sales trends in cities across San Luis Obispo County using graphs and visual aids. We conclude with discussion about where the market will go in 2013, which we base on analysis of local sales statistics and information presented by local realtors. Thanks again to Keith Byrd for his excellent Market Statistics Interactive Dashboard, which we used to draw statistics for the report.