This is my Central Coast Newsletter Archive which was written from 2008 to 2011 for two Pismo Beach, Shell Beach and Arroyo Grande East Side. This was during the recession, which was a very interesting.
If you lived through the 2008 recession, which was caused the Subprime Mortgage Crisis, you know that it had a very big impact on the real estate market.
The Subprime Mortgage Crisis was caused by the Greedy Banking Industry, who would provide loans to anyone with a heartbeat. The problem was that many people could not afford these loans, the monthly payments were not paid, and ultimately the bank would foreclose on the home owner.
If you take the time to read the Newsletter Archive, you will see that there were on average 2,000 foreclosures and short sales during the Subprime Mortgage Crisis at any given time during 2008 to 2011, but the recession continued until the end of 2013.
When I wrote this in August 2016, there are only eleven short sales in both San Luis Obispo County and Santa Barbara Counties. Market values have increased at an average rate of 15% since 2013 and there is really not reason allow your home to be foreclosed on unless you did not pay you loan for a very long time and the value of your home is significantly lower than what you owe.
Please see my More Recent BlOGS Also
DAVID NORWOOD-CENTRAL COAST REAL ESTATE – VIDEO TOURS
Out of Town and you want to receive more information or more photos of a home you think you love. Give me a call at 805-270-5860 and I will be happy to provide you with a video of any home you like. When completed, I will upload your private video to YouTube.
ARROYO GRANDE AND PISMO BEACH AND SHELL BEACH NEWSLETTERS
Central Coast; Arroyo Grande, Pismo Beach Newsletters are Emailed Bi-monthly to people that want to be informed about sales in their neighborhood
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NEWSLETTER ARCHIVE
NOVEMBER – DECEMBER 2011
Arroyo Grande – 336 Single Family Homes Sold 2011
Since the first of January, 2011, 336 single family, Arroyo Grande homes have sold or are in escrow.
285 Homes sold or were in escrow during the same time period in 2010.
Total 2011 Sales in Arroyo Grande, Pismo Beach, and San Luis Obispo County compared to Sales in 2008, 2009 and 2010.
Arroyo Grande Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORCLOSURES
2011 336 $523,000 115
2010 285 $571,000 81
2009 218 $552,000 71
2008 244 $648,000 58
Pismo Beach Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORCLOSURES
2011 136 $630,000 38
2010 79 $614,000 20
2009 70 $792,000 18
2008 82 $895,000 5
SLO County Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORCLOSURES
2011 3,078 $433,000 1,256
2010 2,223 $460,000 1,701
2009 2,220 $479,000 2,040
2008 2,057 $550,000 1,799
What is My Home Worth?
Or call – 805-471-0828 for a free appraisal.
Considering Selling? As a professional photographer, graphic designer, and appraiser, I provide all of all of the important services required to sell your home fast.
OCTOBER 2011 NEWSLETTER ARCHIVE
Arroyo Grande 2011, 309 Homes Sold
Since the first of January, 2011, 252 single family, Arroyo Grande homes have sold or are in escrow.
168 Homes sold or were in escrow during the same time period in 2010.
Only 10 Homes for Sale – With an amazing sales year coming to an end, currently there are only ten homes available in the most desirable neighborhoods in Arroyo Grande.
There are no homes for sale in The Highlands or Village Glenn. Oak Park Estates has three homes for sale. In Royal Oaks there is one home for sale, and in all of Rancho Grande there are only six homes available.
Pismo Beach 2011, 122 Homes Sold NEWSLETTER ARCHIVE
Since the first of January, 2011, 122 single family, Pismo Beach homes have sold or are in escrow.
66 Homes sold or were in escrow during the same time period in 2010
Only 20 Shell Beach Homes for Sale –
With an amazing sales year coming to an end, currently there are only twenty homes available in Shell Beach.
SEPTEMBER 2011 NEWSLETTER ARCHIVE
Arroyo Grande 2011, 252 Homes Sold
Since the first of January, 2011, 291 single family, Arroyo Grande homes have sold or are in escrow.
229 Homes sold or were in escrow during the same time period in 2010.
Only 13 Homes for Sale
After record summer sales, currently there are only thirteen homes available in the most desirable neighborhoods in AG. There are no homes for sale in The Highlands or Village Glenn. Oak Park Estates has three homes for sale. In Royal Oaks there is one home for sale, and in all of Rancho Grande there are only ten homes available.
Pismo Beach 2011, 96 Homes Sold
Since the first of January, 2011, 114 single family, Pismo Beach homes have sold or are in escrow.
65 Homes sold or were in escrow during the same time period in 2010
Only 19 Shell Beach Homes for Sale
After record summer sales, currently there are only nineteen homes available in Shell Beach.
AUGUST 2011 NEWSLETTER ARCHIVE
Arroyo Grande 2011, 252 Homes Sold
Since the first of January, 2011, 252 single family, Arroyo Grande homes have sold or are in escrow.
168 Homes sold or were in escrow during the same time period in 2010.
2011 Sales Update
After 8 months into 2011, the total single family homes sold in San Luis Obispo County is almost equal to the total sales in 2010. If home sales continue at this amazing rate, by the end of 2011 the total home sales could double compared to the last two years.
San Luis Obispo County
Year Homes Sold or In Escrow
2009 2208
2010 2238
2011 2156 (January to August 31) 8 months.
Arroyo Grande
Year Homes Sold or In Escrow
2009 218
2010 242
2011 252 (January to August 31) 8 months.
Pismo Beach
Year Homes Sold
2009 70
2010 65
2011 96 (January to August 31) 8 months.
JULY 2011 NEWSLETTER ARCHIVE
Should Home Loans Have a Minimum 20% Down Payment?
Banking regulators are proposing the requirement of a minimum 20% down payment of the sales price for a home loan. Proponents hope that the change will prevent another housing crisis because loans with a 20% down payment are classified as lower-risk.
Opponents of the proposal argue that the restriction could lower home values, and affect creditworthy American’s ability to buy a home. Additionally, the number of first time home purchases could be reduced significantly because few buyers can save over $50,000 to buy a $250,000 average, low priced home.
Ref: WSJ.com, NAR
Since the first of January, 2011, 289 single family, Arroyo Grande homes have sold or are in escrow.
184 Homes sold or were in escrow during the same time period in 2010. A total of 285 homes sold in 2010
JUNE 2011
Arroyo Grande 2011, 211 Homes Sold NEWSLETTER ARCHIVE
Since the first of January, 2011, 211 single family, Arroyo Grande homes have sold or are in escrow.
168 Homes sold or were in escrow during the same time period in 2010.
2011 Sales Could Double
After only 6 months into 2011, the total single family homes sold in San Luis Obispo County is almost equal to the sales in 2010. If home sales continue at this amazing rate, by the end of 2011 there could be as much as 3,700 homes sold.
San Luis Obispo County
Year Homes Sold or In Escrow
2009 2208
2010 2238
2011 1838 (January to July)
Arroyo Grande
Year Homes Sold or In Escrow
2009 218
2010 242
2011 211 (January to July)
Pismo Beach
Year Homes Sold
2009 70
2010 65
2011 70 (January to July 2011)
MAY 2011 NEWSLETTER ARCHIVE
Why are The Wealthy Buying Homes?
After four years of decline, one-million dollar+ homes sales rose 18.6% in 2010. In the same time period, home sales below
one-million fell 2.8% nationwide. Amazingly, homes sales over five million increased significantly. The main reason is due to the historically low interest rates on loan amounts as high as $686,000 (SLO), which were previously considered the higher rate, non-conforming, “Jumbo Loans” over $417,000. In 2009 buyers of high-end homes paid 1.8% points for a “Jumbo Loan.” In 2010 the points spread shrunk to 0.6% points. Finally, these extremely low interest rates can be fixed for 30 years
APRIL 2011 NEWSLETTER ARCHIVE
What is a REO / Foreclosure? The industry term for bank owned is REO. The definition of REO is Real Estate Owned. Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption. The lender commonly owns a foreclosed property, which is why it is called bank owned.
What is a Short Sale? A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process to avoid foreclosure. This allows the bank to avoid the fifty fees imposed and the borrower to salvage his credit rating. The lender determines the final price the home will sell for. The owners must sign all of the paperwork.
MARCH 2011 NEWSLETTER ARCHIVE
Four Home Selling Mistakes
1) Poor Photography or No Listing Photos – If the photos are too dark to see what the home looks like or if there are no photos, buyers will move onto the next listing. Over 90% of buyers today look at homes on the internet; your most important marketing tool is quality photography.
2) Flyers: Poor Quality, No Flyers, No Price – Many buyers will drive around neighborhoods to pick up flyers. A striking flyer with quality graphic design and photography will make your home stand out from the rest. If you do not have a flyer, your home will not be remembered when the buyer calls to look at homes. If there is no price on the flyer, it will probably be discarded.
3) No or Few Open Houses – Your goal is to get the buyers to look at your home. Several buyers do not want to call agents to look at homes and would prefer going to open
houses. If you have an open house every weekend, real buyers will often return to look again and make an offer.
4) Pricing Your Home Incorrectly – If you price your home too low, buyers will think there is something wrong. If you price your home too high, it will reduce the volume of potential buyers while increasing amount of time your home is on the market. The key is to price your home correctly the first day on the market.
FEBRUARY 2011 NEWSLETTER ARCHIVE
Pricing Your Home Correctly is Key – Buyers typically put an upper limit on their home search in increments of $25,000 or $50,000. If your house is priced at $865,000, shoppers who cut their search at $850,000 may never see your home.
Refinance! Even if you just did it a few years ago. If you can shave at least one point off your rate and plan to stay in your home for at least four years, refinancing makes sense. You may want to consider a 15-year loan, which averages 3.7%. The projected average rate on a 30-year mortgage will be 5% by the year end of 2011 vs. 4.2% today.
JANUARY 2011 NEWSLETTER ARCHIVE
Five Reasons To Google Your Address –
For many, it is common to search the internet to find products or services, but it is less common to search for your home’s address. Homeowners will benefit from searching their address, and this is why:
1. See If Megan’s law registrants live nearby – Megan’s Law requires law-enforcement to provide information regarding registered sex offenders.
2. Find crime reports for your home – A Google search for your address and “crime reports” will likely turn up a police crime map and statistics about crime in your neighborhood.
3. Detect scammers trying to rent or sell your home – Scammers may compose fake listings offering your property for rent or lease-to-own at extremely low prices or terms.
4. Get a copy of your home’s property records – Online records about your home are from public records, often so old, they do not reflect accurate details about your home. If you discover inaccuracies in online reports, I recommend you contact the SLO county public records to correct these problems; especially if you are considering selling your home.
5. Look at your home’s Google street views – When considering selling your home, it is important to see what prospective home buyers will see. You may discover that the map is not accurate or your home not listed. Buyers often Google the location of a home for sale, if you are not on the map, or in the wrong location, you may have problems selling your home.
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JANUARY 2010 NEWSLETTER ARCHIVE
I thought I would start off 2010 with some basic information about real estate. If you have any questions you would like answered, please email or call.
Real Estate or Personal Property, What’s the difference?
Real estate cannot not be moved as it is permanently attached to the land or the home on the land. Personal property is movable.
How do you measure a home? NEWSLETTER ARCHIVE
For most detached residential structures, the “total living area” or “floor area” is measured on the exterior of the building and includes walls and finish. However, condominiums are measured using interior measurements.
Appraisal or Market Value NEWSLETTER ARCHIVE
What is the difference between an appraisal and the market value of your home?
An appraisal is an estimate of value on a given day. Market value is, “what property should sell for, assuming there is a willing buyer and a willing seller.”
FEBRUARY 2010
Should I Update My Home? NEWSLETTER ARCHIVE
I have often been asked if it is worth spending the time and money to update a home. The short answer is yes, but it depends on how much you spend. The cost to upgrade should not be greater than the amount you will get in return.
If you are planning on selling your home in the future, and want to get the highest price possible, it is easier to keep your home updated. Don’t wait and rush to update your home a week before you plan on selling.
Powder Coating Your Home
Recently, I discovered a very inexpensive way to update old, out-of-date brass door knobs, hinges and even ugly chrome / brass bathroom faucets. You simply powder coat them with the one of the more fashionable bronze colors. If you have done research on home updating, you may have discovered there are many shades of bronze, from very black to muddy browns. The advantage to powder coating is that you will get consistency and more choices of colors. Please feel free to contact me if you would like advice on updating your home or referrals to qualified craft persons.
MARCH 2010 NEWSLETTER ARCHIVE
1% Real Estate Marketing – in order to help my clients, during these difficult economic times, I have decided to offer home marketing for a one percent commission rate. As with all of my listings, the one percent marketing includes professional photography, brochures, flyer box, real estate sign, and a web page. Your home will be listed in all of the popular internet Real Estate web sites. For an additional two percent commission, your home can be listed in the
Local Real Estate Multiple Listings (MLS) and Realtor.com.
This is a limited time offer. For more information call me at 805-471-0828.
Will the $8,000.00 & $6,500.00 Tax Credit be Extended After April 30, 2010? – In November 2009, as part of the economic stimulus package, the federal government extended the $8,000 tax credit for first time home buyers. Also, the $6,500.00 tax credit for existing home owners wanting to change their primary residence was extended. With 2010 home sales significantly greater then 2009, the tax credit appears to have a positive effect. Will the credit be extended? Only time will tell. See my next month’s newsletter for more information
APRIL 2010 NEWSLETTER ARCHIVE
Arroyo Grande, CA | HOME PRICES – 2010 VS. 2009
The average price per square foot of a single family home sold in 2009 was $259.00. In 2010, the average square foot price sold has been $250.00.
The average price of homes sold in 2009 was $536,000. In 2010, the average price of homes sold has been $598,000.
$8,000.00 & $6,500.00 Tax Credit Expired April 30 NEWSLETTER ARCHIVE
Unfortunately, the Federal government did not extend the $8,000 tax credit for first time home buyers or the $6,500.00 tax credit for existing home owners wanting to change their primary residence.
PISMO BEACH | HOME PRICES – 2010 VS. 2009 NEWSLETTER ARCHIVE
Single family homes sold in 2009 ranged in price from as high as $4,200,00 and as low as $359,000. In 2010, the highest priced pending home sale is $2,800,000, and the lowest priced home sold was $250,000.
The average price per square foot of a single family home sold in 2009 was $468.00. In 2010, the average square foot price sold has been $371.00.
The average price of homes sold in 2009 was $948,000. In 2010, the average price of homes sold has been $650,000.
$8,000.00 & $6,500.00 Tax Credit Expired April 30 Unfortunately, the Federal government did not extend the $8,000 tax credit for first time home buyers or the $6,500.00 tax credit for existing home owners wanting to change their primary residence.
MAY 2010 NEWSLETTER ARCHIVE
$8,000.00 & $6,500.00 Tax Credit Update – Home Sales and Pending sales in the US rose 6.8 percent in March from 5.01 million units in February, to 5.35 million units in March. This suggests the home buyer tax credit had its intended effect of getting people into the real estate market. Ref. Realtor 6/10
JUNE 2010 NEWSLETTER ARCHIVE
Six Months Left to Get a Low Mortgage Rate
With interest rates at record lows, you may want to consider refinancing your current home mortgage or purchase a second home. To get the lowest “Conforming” loan rate, you can borrow up to $417,000 on a 30-year fixed, no points, with interest rates around 4.75%. To get the second lowest “High Balance Conforming” loan rate, you can borrow up to $687,500 until December 31, 2010, at an interest rate around $4.85%. After the 31st, the “High Balance Conforming” loan product will be eliminated. For loans greater than $417,000, rates are expected to rise significantly, because the demand for loans above that limit will be replaced with the traditional “Jumbo” loan product. Ref: Glenn Warren, Wells Fargo Home Mortgage.
JULY 2010 NEWSLETTER ARCHIVE
Home Sales Tax Increased to 3.8%
Currently, if you sell your home and the equity is greater than $250,000 for a single person and $500,000 for married couples,the sales tax rate on the equity is 15%. In 2013, because of the Obama’s new, “Patient Protection Affordable Care Act” (PPACA), the home equity sales tax rate could be as high as $18.8% depending on your income.
What does this means to you?
If you were fortunate to purchase a home before prices sky rocketed, and you sell your home after 2013, you may have to pay as much as $18,800 per every $100,000 profit over $250,000 for a single person and $500,000 for married couples. So, if you have a significant amount of equity in your home, and you sell your home in the next 2-1/2 years, you could save thousands of dollars. Ref. Snopes.com 4/10
AUGUST 2010 NEWSLETTER ARCHIVE
Short Sale or Foreclosure?
This year, of the total sales in Arroyo Grande, 105 were either homes that were bank owned (REOs) or short sales (pre-foreclosure). Nearly half of the sales were foreclosures, the very last option for a home owner. Selling your home as a short sale is the better option. Below are four good reasons why:
1) After a short sale, if you were current on your mortgage payment; you may qualify immediately for a new home loan. After a foreclosure, the time period to buy another home is from 5 to 7 years.
2) Short sales are seldom reported to the credit bureaus,
but foreclosures are always reported.
3) Normally, a lender will not file a deficiency judgment after a short sale, but one is always filed after a foreclosure. The foreclosed home owner can be liable for thousands of
dollars until the judgment is paid to the lender.
4) New loan applications require disclosure of a previous foreclosed home. The application does not inquire about previous homes involving short sales. Ref: About.com
Please give me a call if you have any questions about short sales.
SEPTEMBER 2010 NEWSLETTER ARCHIVE
Higher Limit Loan Amounts Extended
President Obama signed a resolution in September, extending until the end of 2011, the higher temporary $687,500 conforming loan amount for SLO County. Had the resolution not passed, the maximum a buyer would have been able to borrow, at a lower non “Jumbo” interest rate, and would have gone back to $417.000.
This is great news for owners with home values around $860,000, because it will allow a buyer to borrow up to $687,500, with a 20% down payment, at a lower interest rate. This will help homes remain more affordable and ultimately, it will help to stabilize the overall home values on the Coast. Ref: CA Association of Real Estate
OCTOBER 2010
NOVEMBER 2010
Eliminating Mortgage Tax Deduction Proposal Rejected – Early in November 2010, Obama’s deficit commission proposed to curtail the tax deduction for mortgage interest. Fortunately, the unpopular proposal was defeated. The affect on an already fragile real estate market would have been devastating. According to the National Association of Realtors, if the proposal was not defeated, property values would have plummeted an additional 15%
DECEMBER 2010 – Last News Letter for 2010
NEWSLETTER ARCHIVE
Total Homes Sold 2010 / 2009 / 2008
Pismo Beach Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORECLOSURES
2010 79 $614,000 20
2009 70 $792,000 18
2008 82 $895,000 5
Arroyo Grande Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORECLOSURES
2010 285 $571,000 81
2009 218 $552,000 71
2008 244 $648,000 58
SLO County Single Family Homes Sold
YEAR HOMES SOLD AVERAGE PRICE FORECLOSURES
2010 2,223 $460,000 1,701
2009 2,220 $479,000 2,040
2008 2,057 $550,000 1,799