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2016 Real Estate Review

In 2016 San Luis Obispo County homes sold within 5.5% of the all-time record median home price price set in 2006!

In 2016 the San Luis Obispo countywide the median home price climbed, more homes sold this year compared to 2015, and homes sold in the lowest average days on market in over ten years! The 2016 Real Estate Review booklet contains detailed analyses of the local market in 2016, including a closer look at the beachfront properties, homes on vineyards, homes with five or more bedrooms, and more.

Click Here to view the Real Estate Review booklet.

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

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Home Ready Mortgage

Fannie Mae’s HomeReady Mortgage is its enhanced affordable lending product. It is set to replace the MyCommunityMortgage (MCM) product, launched back in 2001. Some of MCM’s eligibility and underwriting flexibilities have been transitioned into standard policy over time. Fannie Mae has recognized the continuing need to provide more access to credit for creditworthy borrowers, and has developed new or revised loan and borrower eligibility requirements and underwriting flexibilities aimed at low to moderate-income borrowers and buyers in its new HomeReady Mortgage product. It is intended to help lenders, nonprofit organizations, housing finance agencies, and other affordable housing advocates serve today’s market and support sustainable homeownership.

The following list highlights some of the major policy changes that have been incorporated into the HomeReady Mortgage program:

  • Income limits – General income limit of 80% of area median income (AMI) to align with Fannie Mae’s housing goals. Eligibility is also provided for properties located in low-income census tracts with no borrower income limits, and up to 100% of AMI for properties located in high minority census tracts or designated disaster areas.
  • First-time home buyer – The requirement that at least one borrower must be a first time home buyer has been removed for one-unit principal residence loans with LTV ratios greater than 95% up to 97%.
  • Non-occupant co-borrowers – Now permitted for qualifying purposes.
  • Rental income – Rental income from an accessory unit may be considered in qualifying the borrower.
  • Manufactured housing – One-unit manufactured home properties will be permitted as an eligible property type for principal residence transactions. The maximum LTV and CLTV ratios for manufactured housing apply.
  • Renovation – HomeStyle Renovation mortgages will be permitted for principal residence transactions. The maximum LTV and CLTV ratios for HomeStyle Renovation apply.

Income Flexibilities: Accessory Unit Income and Boarder Income

Fannie Mae’s HomeReady loan program, introduced at the end of last year as their enhanced affordable lending product aimed at low to moderate income borrowers, is now accepting, with proper documentation, earnings from accessory units and boarders as a part of qualifying income.

Scenario #1: Accessory Unit Income


  • An accessory unit is a separate dwelling (as identified by the appraisal) with a kitchen and bathroom
  • Income generated from an accessory unit can be considered as rental income under HomeReady in accordance with standard rental income guidelines

An accessory unit is a separate dwelling independent of the primary dwelling unit that must be identified by the appraisal report. It includes a fully functioning kitchen and bathroom. Income generated from an accessory unit can be considered as rental income under HomeReady in accordance with the standard rental income guidelines.

Scenario #2: Boarder Income


  • Up to 30% of qualifying income can come from boarder income
  • Borrower must provide documentation for at least 9 of the most recent 12 months (averaged over 12 months) and documentation of shared residency for the past 12 months

The rental payments a borrower receives from one or more individuals who reside with the borrower may be considered as acceptable qualifying income as well. This applies for a one-unit property. 30% of the total gross income used to qualify the borrower for the mortgage may be from boarder revenue if: the individual(s) has lived with and paid rent to the borrower for the last 12 months, the boarder can provide appropriate documentation to demonstrate a history of shared residency (a copy of an official document(s) showing the boarder’s address as being the same as the borrower’s), and documentation of rental income for at least 9 of the most recent 12 months (averaged over 12 months).

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
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New Listing! 4 Bedroom 2 Bath on 10,000+ sqft. lot

Close proximity to Dunlap school, stop by and see this 2,296 sq. ft. home (per counter records) which sits on large 10,454 Sq Ft. lot. 4 bedrooms 2 bathrooms, family room plus a large recreational room, office and storage room. The design of the home allows for one of the bedrooms and recreational room. The recreational room and bedroom are separate from the rest of the house so perfect for those with extended family needs, could also be perfect for a home business. Detached garage access is off Clark Road. Buyer to verify sq. footage and permits.
Bernie Davidson 805.878.6967

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

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New Listing! Beautiful Monarch Grove Home

Beautifully remodeled, single story home located in the desirable Monarch Grove area in Los Osos. New kitchen, baths, hardwood flooring, windows, Alder interior doors, trim, interior/exterior paint, gas fireplace, furnace, on-demand hot water heater, electric panel, and backyard decks. Three bedrooms, two baths, and attached, 2-car garage. Good-sized third bedroom has no closet. Rest and relax in the peaceful yard with sounds of the nearby ocean, numerous migratory birds, butterflies, and drought tolerant landscape. Explore nearby Montana de Oro State Park, Sweet Springs Bird Sanctuary, local farmers’ market, and hike to the ocean.
Sandra Lee 805.550.6052 or Diane Moroski 805.550.2543

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

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CCL Market Update

Pending Home Sales

Existing home sales have recently been near cycle highs but have been unable to move above those highs, although new gains may perhaps be underway. The pending home sales index rose a strong 1.6 percent in December which is just above economists’ top predictions. Pending sales track contract signing for resales and the gain points at strength in January and February for final sales, tracked through the existing home sales report.

S&P Case-Shiller HPI

Case-Shiller’s home price index had been lifeless in the prior months leading up to the month of November when it rose sharply up 0.9 percent for the best monthly gain since March of 2015. They year to year rate rose 2 tenths to 5.3 percent, an improvement yet still down from the 5.5 percent area it was in early last year. This report shows less strength than the FHFA house price index but both are moving in the same direction, upward, and that is the factor that matters the most.

Consumer Confidence

In the month of January consumer confidence held strong and steady at a level of 111.8, it is down only slightly from December’s 15-year revised high of 113.3. Details in the report are positive including a noticeable decline in those saying jobs are hard to get right now; it is at a percentage of 21.5 percent compared to December’s 22.7 percent. This combined with a solid rise in those saying jobs are plentiful rising from 26.0 percent to 27.4 percent points to more positive news in the consumer confidence sector. In the negatives of the report, the outlook for the future is less upbeat with more saying there will be fewer jobs 6 months from now and fewer saying there will be more. Confidence in income prospects is also down. When looking further into the details of the report there are some red flags, including a nearly 2 percentage point drop in buying plans for auto. This suggests that auto demand, after having several months of very strong sales, may flatten and level off. Home sales have been even less strong than auto sales and here too, buying plans are down sharply. The inflation expectations rate, in some good news in the report, bounced back up 4 tenths to 4.9 percent after sinking in December to 4.5 percent, a very low reading for report. This reading of 4.9 percent for inflation expectations is the best showing since September.

Mortgage Applications

Purchase applications for home mortgages fell a seasonally adjusted 6.0 percent in the past week of January 27th. Application for refinancing fell 1.0 percent. On an unadjusted basis the purchase index increased 12 percent from the previous weeks to a level that stands a whole 2 percentage points higher than a year ago. Purchase applications have been surprisingly strong given the recent rise in mortgage rates. Purchase application activity is at its highest level since June this past week of January 27th. In contrast to purchase applications, refinancing has been on a dramatic decline, reaching lows we haven’t seen since July of 2015 in last week’s data and continuing to fall even further this week. The refinance share of all mortgage activity is down yet again this time by 0.36 percentage points to a level of 49.4 percent. Mortgage rates rose this week and were at the highest level since December.

Construction Spending

Construction spending fell 0.2 percent in December, but does show gains for housing. Spending on n ewe single-family homes rose 0.5 percent in the month with multi-family spending up 2.8 percent. On the negative side, however, is a 0.6 percent dip in home improvements. More negatives include, pull coming from the public construction spending component which fell a sharp 1.7 percent in the month. Educational spending fell 2.2 percent with highways and streets down 0.6 percent. Private nonresidential categories are mixed with total spending for this component remaining unchanged. Spending on new home construction will have to improve further to ease the tight supply seen in the new home markets.

FOMC Meeting

The Fed kept policy unchanged at the latest January FOMC meeting, surprising nobody. The statement gives upgrades to inflation and should confirm expectations for several rate hikes this year. Inflation “will” rise is the new jargon used during this announcement vs “expected to rise” the language used back in the December statement; referring the Fed’s two percent inflation target mark. In the statement made, the language now excludes references to factors that were holding down inflation, including energy prices and non-energy imports. Other than a few language modifications the statement remains little changed from the statement of the last meeting. Economic activity is still described as moderate, household spending is up only moderate while business investment remains soft this is all in line with the prior FOMC statement for the December meeting. Jobs are described as solid with further gains expected. There was no reference to timing of the next rate hike during the meeting announcement.

Jobless Claims

Initial claims continue to reach new lows this year, down 14,000 in the week of January 28th to a level of 246,000. The four week average was at 248,000 and has been below the 250,000 mark for three straight weeks; a first for this reading. Continuing claims, though not moving lower are still favorable, down 39,000 in the lagging data for the week of January 21st to a level of 2.064 million. This four week average is down 13,000 to 2.080 million with the unemployment rate for insured workers holding strong at a very low 1.5 percent.

Gallup Good Jobs Rate

The January Gallup Good Jobs rate was 44.8 percent that is up one tenth of a point from 44.7 in December’s reading. Though not a significant increase, the current rate is the highest for any January since tracking the measure began back in 2010. The percentage of US adults who participated in the workforce in January was 67.4 percent this includes people working full-time, working part time, or not working but actively seeking and being available for work. This data is up almost a full percentage point from 66.5 percent in December and is about even with the November results last year of 67.5 percent. Gallup’s unadjusted US unemployment rate in January was 5.8 percent, up from 5.2 percent in December and 4.9 percent in November 2016, the lowest rate Gallup has ever recorded. This unemployment rate represents the percentage of US adults in the workforce who did not have any paid work in the past seven days, but were actively looking for and available for work. Gallup’s measure of underemployment in January was 14.1 percent up from December’s rate of 13.7 percent, and 1.4 points higher to than the report’s low measured in October 2016 (12.7 percent). Gallup’s US underemployment rate is calculated by combining the percentage of adults in the workforce who are unemployed (5.38percent) and those who are working part time but desire full time work (8.3 percent)

Employment Situation

Payroll growth in January exceeded expectations rising 227,000 for the best showing since September and well above the 2016 average of 187,000. Construction spending has been improving and is reflected in payrolls where the sector added a strong 36,000 jobs in the month.  The unemployment rate rose 1 tenth to a still very low rate of 4.8 percent. This indicates new employees entering the labor market as the labor force participation rate, which has been down, bounced back 2 tenths higher to a level of 62.9 percent. The pool of workers available rose 183,000 in the month to 13.4 million. A surprise in the report is the surprisingly light wage pressure as average hourly earnings ticked only 0.1 percent higher, with December revised down from an initially impressive 0.4 percent gain to a gain of only 0.2 percent. The yearly rate which remained near the three percent line in December’s initial data is now revised way back down to 2.5 percent.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile
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New Listing! San Luis Bay Estates-55+Active Adult Community

Perched near the top in Indian Hill, a 55+ active adult community within the gates of San Luis Bay Estates, this lovely home evokes the feeling of a tree-house. Sit outside on the spacious deck, admire the view from the windows and enjoy the peaceful surroundings of this quiet neighborhood. Built in 2005, this 3 bedroom, 2 bath modular home features hardwood flooring, crown molding throughout and a spacious kitchen with built-in desk and eating area. Although you won’t need it very often, when it is hot outside this home has central air conditioning! An attached 2 car garage also features a work room and storage area. For full-time residents or as a vacation home, the gated entrance provides a sense of security. Schedule a showing right away as these homes are in high demand.
Kay Cementina 805.748.1438

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

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New Listing! Popular Villa Rose in San Luis Obispo

Popular Villa Rosa in San Luis Obispo! One of the best managed and maintained developments on the Central Coast. This 3 bedroom, 2 and a half-bath unit is perfectly situated towards the back of the development with views of the hills and ample guest parking. Close to downtown, shopping and restaurants. Immaculately maintained and move-in ready. Two car garage. Watch the fireworks at Sinsheimer Park without leaving home! Explore the beautiful California coastline from this ideal location between San Francisco and Los Angeles.
Sandra Lee 805.550.6052

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

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New Listing! 4 Bedroom 3 Bath Santa Maria Home

This Harvest Glen home is like brand new! This four bedroom, three bath, one story home has a great floorplan! One bedroom and bath is in the front of the home with the other three bedrooms (including the master suite) is in the back. Beautiful granite counters in the kitchen with island and open to dining area and family rooms. Extra concrete in the backyard for BBQs and outside fun. All bedrooms have ceiling fans, too!
Wendy Teixeira 805.310.3505

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

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New Listing! Beautiful Custom Santa Maria Home

Beautiful Custom Home in Sculptures. This immaculate single story home has 4 BR, 2 1/2 Bath and a 3 car tandem garage. Wonderful Kitchen features granite counters, electric oven/range, newer dishwasher, stainless steel refrigerator, RO system and breakfast nook. Family room with included 65 inch flat screen Samsung TV. Large dinning area with custom china cabinet included. Large Master Bath with dual sinks and separate tub and shower. Professionally landscaped front yard and back yard with a covered patio. Property has Central A/C and Water softener included. ***Information deemed reliable but not verified or guaranteed by broker***
Shea Hutchinson 805.260.6322

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