The Keith Byrd Team's San Luis Obispo Real Estate Blog

I've been researching median home prices over the past several years. The resulting graphs for each city haven't really shown what's happening as we have such a variety of homes in most cities. The graph for most cities shows median prices up one month, down a lot the next, up a lot the next, ....

Santa Maria/Orcutt is the one Central Coast area that really tells the story how prices have been impacted over the past few years by foreclosures. Click on the image above to enlarge the graph.

A quick update on Jordan. She ended up staying and running tonite in the semi-finals...and qualifited for the finals! Plus, broke a high school record.

See the race here!

Here's an interview with her after the race

If you've been following the news about Jordan Hasay, she was able to run in the Olympic Trials today since 2 of the runners dropped out making room for Jordan to run (the top 30 runners compete and Jordan was #31).

According the this website, Jordan ended up #20 in the preliminaries. It looks like her time would have qualified her for the semi-finals (if that what the "Q" means next to the times) but she is off to compete in the the world Junior meet in Poland tomorrow. Jordan's goal is to make the 2012 Olympics in London and we'll hopefully see her there!

FHA WAIVES 90-DAY ANTI-FLIPPING RULE

In an effort to facilitate the sale of bank-owned properties, the Federal Housing Administration (FHA) has temporarily suspended its 90‑day rule against flipping properties. Under the anti‑flipping rule, the FHA will not insure a mortgage loan if the sales contract is executed within 90 days of the seller’s acquisition of the property. Effective June 9, 2008, the anti‑flipping rule is waived for one year for properties acquired by lenders, their subsidiaries, and their outside vendors.

The purpose of FHA’s new policy is to facilitate the sale of bank-owned properties, given that foreclosed and abandoned homes harm neighborhoods and delay a community’s recovery. However, FHA still requires homes to be in a “safe, secure and sound condition” which may not be the condition of certain foreclosed-upon properties.

I just received this comment about our Market Snapshot reports:

"This is an amazing report. Thank You so much."

Try the report if you haven't. It ties directly into our MLS system in real time so the data you receive is current.

http://www.slocountyhomes.com/market_snapshot.htm

(thanks Dan for the comment, I tried to email you back but the email bounced back)

Ryan's Mortgage Blog:
A while back I wrote a blog about lenders freezing Helocs(Home Equity Line of Credit). While it is still happening, the FDIC is stepping in. Here is an excerpt from an article I posted below from housing wire: "The FDIC letter warned banks that such a shotgun-style approach to freezing HELOCs might violate Truth-in-Lending regulations; under Regulation Z, lenders can reduce an applicable credit limit only in the event of “significant decline” to the value of an individual property (a “material change” in the borrower’s financial condition — such as the loss of a job — qualifies as well)." http://www.housingwire.com/

Another interesting article I ran across was about Wachovia Corp. getting rid of their "pick-a-payment" loans, aka option ARM. A no brainer for them but in case you are interested here it is:
Wachovia Article

I can be reached at RBaker@PeregrineLending.com or 805-540-0866.

SloCountyHomes.com continues to grow in popularity. In June, the site received over 48,000 visitors.

Here's the top 15 accessed pages for June:

Have you checked out the blog visitor map lately? This map shows where people are located that have visited the blog since March 23rd. The Internet has really changed things in real estate and having great Internet exposure is priceless. Imagine the cost to run print advertisements in every location shown on the map.

See the map here

I updated the inventory charts and other graphs on the www.SloWatch.com site. While the market slowed down a bit since May, new listings dipped a bit too so we didn't see a jump with inventory. Most cities are close to the level they were at a month ago. But, there are a few cities that have pretty high levels. Inventory rose again this month in Morro Bay to its highest level in the past 2 years. Santa Maria is also at its highest level in the past year, as is Templeton.

As for Months of Inventory (MOI) which looks at the Sold activity over the past 30 days, June was an ok month for most cities. Countywide, our MOI for the first of the month stayed the same at 10.5 months. Atascadero showed a sizeable improvement as did San Luis Obispo. It was a slow Sold month in Nipomo which made its MOI shoot from 7.7 months to 39.3 as of yesterday. Templeton continues to have a high MOI. The inventory page is here - http://www.slowatch.com/inventory.htm

Central Coast MLS Statistics -Residential -June 2008
(Last months data is also included - June (May))

New Listings -710 (767)
Back on Market - 314 (335)
Price Changes - 1046 (984)
Contingent - 147 (168)
Pendings - 523 (546)
Solds - 352 (365)
Expireds - 350 (307)
Inactives/Withdrawns - 249 (253)

Foreclosures (Homes, Condos, PUDs)
31% of the June Pendings in SLO County were foreclosures (51 REO, 15 Short Sale), up from 26% in May

71% of the June Pendings in Santa Maria/Orcutt were foreclosures (93 REO, 10 Short Sale), down from 72% in May

Here's the REO breakdown within SLO County:
12 - Paso Robles
9 - Atascadero
6 - Arroyo Grande
6 - Nipomo
4 - Grover Beach
4 - Oceano
2 - Cambria
2 - Los Osos
2 - San Miguel
2 - Shandon
2 - Los Osos
1 - Morro Bay
1 - Templeton

I found another foreclosure search which displays the addresses as well for free. The one I added recently to the REO page (http://www.slocountyhomes.com/reo.htm) displays the street name, but not the address. I've canceled the one on my site but I've paid through 7/14 so it will still be on the REO page until then.

This is the one that displays the addresses - http://www.ForeclosurePoint.com/ . You have to register but it's free. I don't know who may get your email address and other contact info you need to enter though.

Remember you can get REO and Short Sale Listing information that are listed in the MLS through reports available from the SloCountyHomes.com home page:

http://www.slocountyhomes.com/reoex.php

http://www.slocountyhomes.com/shortex.php

After failing to sell her Florida home for the past year, a homeowner decided to throw herself into the deal as well for an additional $500,000. That's sure a different approach then offering a free trip or a higher commission to the Buyers agent.

Read the article here

With a few days left in the month, market activity thus far has been so-so. As of a minute ago, we haven't broken 500 Pending sales yet (471). While we had an active April, it appears at that may have been our peak as Pendings dropped about 10% in May and maybe another 10% drop this month unless we get a flurry of closings by Monday.

Ryan's Mortgage Blog:
We finally made it through the heat wave huh? I almost went out and bought a portable AC for the whole 5 days we would use it all year.

So the Feds met today and kept rates steady, which wasn't a surprise. As far as mortgage rates (except for the 5 year ARM) go, they have been steadily creeping up over the last month. The average 30 year fixed went from under 6% to somewhere in the 6.375% range and it doesn't look like it will stop there. These raises in rates have been mostly caused by the inflation problem, where May's consumer and producer price indexes showed stronger levels of inflation.

Out of curiosity, I have a question for you guys about the blog I did last week regarding closing costs. It got me thinking about the day of closing and signing the paperwork. It can be rushed and very over-whelming, and things can be over looked. I was thinking about offering a service where I could come in the day of closing and help people review their paperwork and closing costs and point out any red flags and also help them understand things. OR maybe have people request me as the notary so I am there to help them through the process. Sometimes the Escrow company is there to do that, or other notaries can be helpful, but not always. As a licensed notary public I have seen some confused people on signing days, and sometimes I think they look at the documents as if they were written in a foreign language. I do my best to help explain things as a notary, but sometimes people are rushed, or are blindsided by some things, and feel pressured to just go ahead and sign everything. I realize that no one wants to see the transaction be voided on the day of signing, but than again my goal is to make sure the borrowers aren't "swindled" in any way and that they understand everything. What do you think of my idea? Ideally, it would be nice to find any problems BEFORE signing the docs, but that doesn't always happen, so wouldn't having someone go with you on the day of closing be helpful? I figure if your lender or broker has been honest with you through the whole process they wouldn't mind their clients receiving help with their loan documents. On the flip side, I have seen borrowers act clueless to some fees and try and get them knocked off, just to point out to them that they were on the GFE(Good Faith Estimate). So I would also not be doing this to knock of fees for the borrower or to bash honest lenders. Any feedback would be appreciated.

I can be reached at RBaker@PeregrineLending.com or 805-540-0866.

C.A.R. REPORTS SALES INCREASED 18.1 PERCENT; MEDIAN HOME PRICE FELL 35.3 PERCENT IN MAY

Home sales increased 18.1 percent in May in California compared with the same period a year ago, while the median price of an existing home fell 35.3 percent, C.A.R. reported today."Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state," said C.A.R. President William E. Brown. "Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels."The median price of an existing, single-family detached home in California during May 2008 was $384,840, a 35.3 percent decrease from the revised $594,530 median for May 2007, C.A.R. reported. The May 2008 median price fell 4.7 percent compared with April's $403,870 median price.

Looks like SLO will have one less airline to choose from as of November. American Airlines has announced that it will cease flights out of the San Luis Obispo airport. American also announced they will cease operations at the Oakland airport as well.

I decided to buy another Prius since I like the one I got for my daughter so much. I guess I'm not the only one that's looking to buy one. I was told that it will take 12-20 weeks once I order it. I found a dealer that will charge me list price and not over list price, which I hear some dealers are doing.

I've done quite a bit of travelling in the last 2 weeks. Seattle, Bay Area, and got back from LA yesterday after driving my youngest daughter to LAX for her trip to Germany. There's a lot of items I have on my list to catch up on. If you've sent me a VIP login request, I plan to update the Sold reports and send out the logins in the next day or so.

Also, theMLS Search update I blogged about a few days ago seems to have broken the Housetrack new listings update emails. It appears to be sending out all listings that meet your criteria, not just the new ones. I contacted the vendor but not holding my breath for a quick fix. You may want to try the New Listings report that's a choice from the home page. It displays the new listings for the past 7 days.

http://www.slocountyhomes.com/newlistex.php

You may have noticed that one of the MLS Searches on my site looks a bit different. This is the "form search" and the one that you use to get the New Listing email updates. I've got to tweak a couple of my webpages as the width of the form changed with the upgrade.

But, one thing that is changed is the "Send a Friend" a listing feature. This is a choice you have when you display the listing details. What is happening now is that I get a blind copy of the message (and listing) that is sent and I'm not able to configure it to stop sending me the message.

I delete the messages that I receive from it but wanted to let you know it was happening. I've contacted the vendor and told them I don't want to get copied. They may consider it a "feature" but I think it's a privacy issue.

Ryan's Mortgage Blog:
As promised, below is a list of ESTIMATED COMMON CLOSING COSTS (not what my company or I charge) associated with a mortgage (all of which may not apply to your loan). These are based on a typical single family residence in California and are numbers I compiled after viewing clients transactions with various companies.

- Appraisal $250 - $550
- Credit Report $0 - $20
- Processing Fee $300 - $700 (Paid to Broker's processors)
- Underwriting $400 - $800 (Paid to Lender)
- Closing/Escrow $400-$600 (Paid to Escrow Company/Based on Value of Home)
- Doc. Prep Fee $100 (Paid to Escrow)
- Title $400-$1500 (Paid to Title/Based on Value)
- Notary $50-$150
- Recording $100 (Paid to city/government)
- Tax related service fee $50-$100
- Wire Transfer Fee $25-$100

Average Total: $2,920 - Not including Origination/Broker Fee - I did it like this so you can see what the minimum usually is WITHOUT the broker fee. So this is before the company makes any money, granted they didn't hide any fees in other areas (shady stuff that can happen).
Loan Origination or Broker Fee 0.5% - 1% (Paid to Broker) This could be broken up into two different fees depending on the situation but still should total around this amount. This is the fee you really need to be careful of, it is what lenders and brokers charge for their services. Every company has their own ways of calculating this and what variables are included (building expenses, advertising, sales commissions, staffing, equipment, etc...). Anything above 1% should throw up a red flag, and depending on the loan amount, even 1% can be very high.

Average Total with Broker Fee: $5,500

Optional: Discount Points .5%-2% (form of prepaid interest paid to the lender in turn for a reduced interest rate. These fees are usually tax deductible.)

Not included:
- Hazard Insurance (required)
- Mortgage Insurance (not always required)
- Pre-paid tax (how much is optional sometimes)
- 30 days interest paid upfront (varies depending on what time of the month you close and lenders requirements)

All four of these "not included" fees could cost upwards of $2,000 - $4000 but are not usually included when talking about the "closing costs" of the loan, because they aren't necessarily costs of doing the loan, and can vary depending on the borrowers options. BUT they are paid at closing so be aware of them. They should be included in the GFE though, in a separate section near the bottom.

Finally, be aware when purchasing a home that the seller can pay some or all closing costs for you. This can be a good thing to negotiate in today's market!

If you have any questions or comments, you can reach me at 805-540-0866 or RBaker@PeregrineLending.com.

I found this on a Realtor message board:

"More homeowners who are having trouble making their mortgage payments and who owe more than their properties are presently worth are engaging in a scheme known as "buy and bail," in which they use their good credit to purchase a second home and then let the first property fall into foreclosure. They often deceive the lender into believing that they will rent out the first residence, but Fannie Mae plans to adopt new guidelines in the next week that require them to provide executed lease agreements or other evidence that they are serious about renting out the home as well as provide proof of their ability to make mortgage, tax, and insurance payments on both properties. The strategy is popping up in California and Arizona, where state law makes it difficult for lenders to file suit against borrowers unless a personal line of credit was used to buy or refinance the home. Many lenders and real estate agents call the practice fraud, and there are concerns that borrowers are being helped by agents and brokers."

Here's a link to another source where you can get Sold home info from. It displays the results immediately. It may look familiar to long time SloCountyHomes.com visitors. Enter in an email address like a@a.com as I don't know if your real email address will get sold and you'll end up getting lots of SPAM. You can just enter a letter for the first and last names too.

http://www.svhousevalue.com/

Realtor, Not a Real Friend

The Washington Post had an article about a bad experience when a friend (a Realtor) asked to represent them on a home sale.

Here are some reader replies to the article:

"I suggest never doing business with friends because most people don't know how to keep business issues separate from personal friendships."

"It was an act of friendship to NOT hire the realtor friend. If anything went wrong with the sale, it would cause tension in the friendship."

"It is unfair to expect anyone to significantly hamper their own efforts by hiring someone who is incapable, unavailable, or otherwise not up to the task. True friends would never ask you to do so."

Read the entire article here

Whew...is it hot or what??

I've been in Seattle visiting some friends since the weekend and was a bit surprised when I got off the plane in SLO.

I haven't been in Seattle for many years and the biggest change I saw was the TRAFFIC. We were in Bellevue and the trip from the hotel to our friends house was taking about 5 minutes. On Monday, I made the trip at 5 PM and it took me almost 25 minutes because of the commute traffic. The only positive thing I can say is that commute didn't last hours like LA and the Bay Area.

So, I'm catching up a bit on the recent happenings around good ole' SLO. I saw that the children's museum opened which is good news. My kids had good times when we took them there when they were growing up.

I didn't like reading about the brawl during the Blues game yesterday and that the Trib would include it in the headlines. So when does throwing punches in baseball games become acceptable? Is it after high school? If the Blues is supposed to be family-oriented, why can't they make a rule that if you hit someone, you're off the team? But I don't know what's worse, the fight or the Trib reporting it like it was something that was on the same level as a player having a good game. What's next, changing the name to the "SLO Black & Blues"?? I hope that there is a followup article about what the new Blues management is doing to stop this from happening again.

Ryan's Mortgage Blog:

When receiving a quote from a lender or broker you should also receive a Good Faith Estimate (GFE), if you don't get one, you need to ask for one. The GFE shows all the "estimated" fees related to your loan. I say estimated because it can and will change, and the fees are not legally binding. They can change because many parties are involved (Title company, government, appraiser, etc...) and sometimes there are miscellaneous obstacles like liens that need to be paid off or something else fun you didn't know would come up.

Several fees are based on the price of the home or loan amount, and brokers/lenders change very different amounts for their time, so it is hard to estimate how much your closing costs should be. So just because your neighbor got charged "x" amount from XYZ company, doesn't mean you will too. BUT you need to work with a broker that will explain all the fees and not hide any of them. If you are signing the docs and see fees you were unaware of, you do not have to sign. Make sure to check these fees the day of closing every time even if the GFE looked good!

Later in the week I will post an estimated list of fees that you could see on your GFE. As a loan officer, I like to give a cushion of more than less, meaning I estimate things as costing a bit more than they should so when it comes time to close you may not have to pay as much, instead of finding out you owe more. As you will also see, many fees are out of the lenders/brokers hands such as (government, appraiser, escrow, notary). So it is important to find a broker who knows which companies to use.

The APR (Annual Percentage Rate) is supposed to be the true cost of the loan, and is supposed to help you compare loans between lenders. It combines the interest rate plus the estimated fees you should be charged. It has good intentions, but can be very flawed for too many reasons to list. So let's say company AB is advertising a 30 year loan at 6% interest and 6.25% APR, and company XY is advertising same thing for 6% interest and 7% APR. According to the figures company AB should have cheaper closing costs. BUT the problem is there is no exact mandated calculation on how to determine APR, the law just states it needs to be presented, and most times the APR is probably wrong. It also doesn't tell you if the loan is fixed or adjustable, or if it has any kind of prepayment penalty. So don't get too tied up into finding out the APR, I'd rather see a GFE any day.

For free, no obligation rate quotes feel free to contact me at RBaker@PeregrineLending.com or 805-540-0866.

If you're a Verizon customer, you may have noticed that your phone recently started displaying 2 bars intead of one. That's because they've been upgrading their network in SLO County. What else that means is that the speed of their wireless Internet service has also been upgraded to Broadband access, which is as fast as cable modems and DSL! Previously, when you entered SLO County, the speed dropped to more like dial-up speeds. I connected when I was at the SLO Airport on Sunday and it was FAST!

I haven't tried my Internet connection from all areas of the County yet to see if the entire County has been upgraded by I would assume that it has been or soon should be.

I signed up for a new foreclosure info search service today. It displays pre-foreclosures and auctions and I thought it was a good compliment to the REO and Short Sale listings reports I already offer.

I've found a couple problems with it if you try to request more details which I've contacted the company about. Doubt they work on weekends so it probably won't be fixed until next week. But, you will be able to search any city and have it display the results.

You can try it out here

Ouch! Real estate advertising in newspapers dropped a whopping 23% last year and this year doesn't look any better. If you go to the Newspaper Association of America's web site, http://www.naa.org/, and look at the press releases for this year you'll see that their emphasis is now with online newspaper websites.

A little while ago I blogged aobut bill AB2678 which would have required an energy audit and repairs be paid for by a Seller before a home could be transferred to a new owner. Due to efforts by Realtors and others, the author of the bill amended it to remove the point-of-sale requirement. The bill was further amended at the California Association of Realtor’s request, to ensure that energy audits or improvements are not required as a condition of sale.