No Comments

2016 4th Quarter Central Coast Real Estate Report

The San Luisa Obispo County’s Real Estate update includes data for all cities and surrounding areas of the Central Coast for the four quarters that made up the year of 2016 (January-December).

  • 2,869 Total Home Sales (2016) vs. 2,852 (2015)
  • $555,000 Median Home Price (2016) vs. $525,000 (2015)
  • 98.05% Sales per List Price (2016) vs. 97.92% (2015)
  • $342.15 Average Price per Square Foot (2016) vs. $325.80 (2015)
  • 68 Cumulative Days on the Market (2016) vs. 73 (2015)

All five of the reported components of the real estate report for San Luis Obispo County improved in 2016 from the year prior, 2015.

Total home sales increased by a small 17 total homes. However, the total number of sales that were normal vs. the distressed sales (REOs and short sales) increased by 1%, meaning there were less foreclosures in the year of 2016 vs. 2015.

The median home price increased from $525,000 in 2015 to $555,000 in 2016 for an increase of over 5% or a total of $25,000.

The price per which a home is sold for vs. what it was listed for increased by .13% on a year on year basis. This increase means homebuyers are willing to pay more of the listing price of a home when compared to last year.

The average price per square foot increased by a total of $16.35 on a yearly basis.

The cumulative days a home for sale sits on the market for decreased by five days meaning homes are selling at a faster pace for the year of 2016 when compared to the year prior.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
No Comments

The Floating Rate Lock

The floating rate lock sometimes allows you to take advantage of improvements in rates.

Some lenders allow a float down for some fraction of the improvement.  For example, if you are locked at 3.625% paying one point and mortgage prices improve such that 3.625% is no points, then some lenders will allow a float down.  Generally, a float down requires at least one point improvement in fees and then the lender will agree to give you half the improvement.  This means that in our scenario above, the new rate after the float down is 3.625% paying a half point.

Note: not all lenders allow a float down, so make sure you find out what policy you are locking in ahead of time.

Float downs are a way for banks to avoid loosing business when rates are in a downward environment. Every bank that offers float downs has some fee associated with the service so it’s important to understand that cost.  Usually it makes more sense to switch banks if the savings is compelling.  Switching banks within a brokers list of approved lenders is easier than moving from a large commercial bank to another.  Of course, if you are moving from a bank to a broker, your savings are likely to be substantial!

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
No Comments

Need a lot of Bedrooms?

Following is the number of 4+ bedroom homes sold in 2016 (by city):

Paso Robles – 243 homes sold with 4+ bedrooms
San Luis Obispo – 135
Arroyo Grande – 94
Atascadero – 85
Nipomo – 69
Templeton – 48
Pismo Beach – 27
Morro Bay – 26
Los Osos – 23
Cambria -22
Grover Beach – 13
Oceano – 8
Cayucos – 2
Avila Beach – 1

4+ bedroom home sales were 25.8% of the total number of home sales for SLO County in 2016.

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

No Comments

Upcoming Changes with Central Coast Realtors

For many years, there has been a Central Coast Regional MLS made up by 7 individual Association of Realtors. What this did was to provide a way for local Realtor to see every listing on the Central Coast and provided a “cooperative” agreement where Agents could bring Buyers to homes anywhere on the Central Coast.

This all changes in a few months.

The Central Coast Regional MLS goes away on March 31st, 2017. The Santa Maria Association has decided to start a new MLS (North Santa Barbara County Regional MLS) while the Realtor Associations in SLO County are all joining the California Regional MLS (CRMLS).  One impact this will cause on Home Sellers is the amount of exposure their listing will have with local real estate agents and how many agents can bring Buyers to their home.

Currently (pre-3/31/17), Central Coast Realtors can expose their Sellers home listing to ALL local agents.  When the CCRMLS goes away, Realtors will have the choice of belonging to the new North Santa Barbara MLS, the California Regional MLS, or both.  If a Seller chooses an Agent that does not belong to both MLSs, their listing will receive less exposure.

For example, if a Santa Maria home seller lists their home with an Agent that only belongs to the North Santa Barbara County MLS, the Sellers home will NOT be exposed to over 2,000 Realtors in SLO County, nor will their home listing appear on SLO County Realtors home search sites. A Realtor in Nipomo that is only a member of a SLO County Realtor Association will not see the Santa Maria listings, nor have an agreement in place that if they did bring a Buyer to a Santa Maria home listing, they will be paid any commission.

If you are listing a home after 3/31/17 and want maximum exposure for your listing, make sure you hire an agent that belongs to BOTH the North Santa Barbara County MLS and the California Regional MLS.

Because it will cost Brokerages and Agents to join multiple MLSs, the result is that there will be two levels of Realtors on the Central Coast; ones that provide exposure to all Agents and others that provide limited exposure. Which type of Realtor/Brokerage do you want to market and sell your home?


Before 3/31/17

Listing Exposure in MLS and on Home Search Sites 2674 Agents


After 3/31/17 (CCRMLS goes away)

Santa Maria/North Santa Barbara MLS SLO County MLS Santa Maria + SLO County MLS
Listing Exposure in MLS and on Home Search Sites 670 Agents 2004 Agents 2674 Agents

(Note: # of Agents was determined by a roster search in the CCRMLS as of 1/10/17)

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

No Comments

Loan Underwriting

Once your loan has been officially pre approved, all of the client paperwork gets submitted to the underwriter at the bank to review before getting final approval. The underwriter makes sure all necessary paperwork and forms are in order to prevent any issues or delay in the loan funding. If there is any missing paperwork or problems with the documentation provided, the items will be added as “conditions” to the loan.

Underwriting can occur the same day, or take up to 30 days. This depends a lot on the loan program, the bank, and how many conditions on the loan need to be addressed. The underwriter usually takes 24-48 hours to review conditions.

Unfortunately, current lending conditions require borrowers to be more meticulous in getting approval for the loan. From Central Coast Lending Owner/Broker Jason Grote:

“Underwriting has become an auditing role where underwriters are forced to over verify each detail leave no stone unturned.I suggest that all borrowers be prepared to document all income in triplicate.  For example, it’s not enough that we see your social security deposit into your bank account, and on your tax returns, we still need to see the award letter, and the 1099’s. “

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
No Comments

VA Loans Have Lowest Interest Rates for the 30th Straight Month

For 30 months straight VA mortgage rates are the lowest out of all programs (conventional, FHA, etc.). Applicants with military backgrounds qualify for a VA loan which can be used for either a purchase or refinance. If you’re a military borrower you currently have access to interest rates that are below what’s available to other US citizens. As a member of the military you have access to the VA Loan Guaranty Program, a program meant to make homeownership affordable for military members. According to Ellie Mae, VA mortgage rates routinely beat market rates by more than a quarter of a percentage point. In additions VA mortgages get approved more easily than other loan types. Other benefits of VA loans include: 100% financing, no down payment or mortgage insurance requirements. VA loans are also assumable, which means that a VA home can be sold with its VA financing attached making the home extremely attractive to buyers as they can get the same interest rate no matter what the current market rates are.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile