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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. www.2217Humboldt.net
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
805.543.LOAN info@centralcoastlending.com
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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. www.2903Garibaldi.net
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

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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
805.543.LOAN info@centralcoastlending.com
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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
805.543.LOAN info@centralcoastlending.com