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 The AP reports today that nationwide sales of existing homes unexpectedly increased 2.9% in February after 6 months of decline. Not since July have we seen an increase in sales, although year over year we're down 23.8%

Nationally, median home prices fell 8.2% from a year ago for single family homes and condos, and 8.2% for just single family homes. These reductions in the median home price are the biggest slide in the current housing slowdown.

Economists still believe that a rebound is many months away. Bernard Baumohl, managing director of the Economic Outlook Group, describes the hemorrhaging as stopped but the recovery "will be long, slow,and painful." (yikes!). Brian Bethune was also cited as saying, "A quick bounce-back in the housing markets is simply not in the cards."

Sales should be helped in the coming months by the recent increase in conforming  loan limits (from $417,000 to $685,700)

Okay, let's talk about our area. Look at  these graphs that show very clearly what's happening to sales numbers in our county:

Feb2008-County.jpg

Here's North County:

Feb2008-NorthCounty.jpg

Here's San Luis Obispo:

Feb2008-SLOCity.jpg

Here's the Scenic Coast:

Feb2008-ScenicCoast.jpg

Here's South County:

Feb2008-SouthSLO.jpg

And here's Santa Maria:

Feb2008-SantaMaria.jpg

We are seeing sales drop here in our area, but there is a lot of activity. Buyers are out looking and it feels like they are waiting to try to "Hit the bottom" of our market. I also think buyers will have the luxury of having time to purchase without the rapid upward pressure that our market has had in the past run up. It's just my opinion.

If you have specific needs, please call me at 805-801-5529. I love to talk real estate.!! Liz

I found an interesting article and then some perspective regarding it:

Home equity slips below 50 percent (Mar 13)

Homeowners’ debt on their houses exceeded their equity for the first time since the Federal Reserve Board began tracking it in 1945, falling below 50 percent.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Today’s low equity is a result of lax lending standards during the housing boom, when many buyers were able to obtain mortgages with little or no money down. Although some of those buyers could not afford their homes and lost them to foreclosure, some could afford houses—with help from alternative loan models—and but for those loans would have found homeownership beyond their reach.
• The statewide median price of existing single-family homes for January 2008 was $430,370. The last time we had a comparable median price was in March 2004, when the median was $428,060. Homeowners who bought their homes before 2004 will likely have more equity than those who purchased since 2004.
• The median home price in January 2003 was $336,210. Comparing the current median to five years ago, it is now 28 percent higher. People who buy a home and hold onto it at least five years will usually come out ahead.
• A house is not a stock. It’s always been first and foremost a place to live, to raise a family or to retire. Even when prices were falling, home buyers who pursued a buy and hold strategy—retaining the property at least five years—have almost always come out ahead in the long-run. Historically, the value of single-family homes in California has increased about 9 percent a year.

I have seen a lot of buyer interest lately. Perhaps we are seeing the bottom. Certainly with more buyers looking for those good deals, competition for the deals happens. I talked to a Santa Maria agent the other day who tells me there are properties being bid over the asking price. If you are looking for a home, remember this is a beautiful area, and lots of people would love to live here. That translates to value over the long run.

That's all for now...as always, call me to talk specifics regarding your needs. 805-801-5529. Liz

"How is the market doing Liz?"

I am asked that all the time by friends and clients alike. It is true, here in SLO County we are fascinated by the ebb and flow of the real estate market. I would say that even though we are seeing softer prices and more of a buyer's market, Central Coast real estate is still very much in demand.

I have been really busy showing property this early spring. Writing lots of ....how should I say it...."daring" offers...People are definitely looking for extraordinary prices...and when the find them, they submit an even more extraordinary offer. I currently am working on putting together two short sales and one foreclosure. The deals are out there!

Tuesdays are San Luis Obispo's new listings broker's tour. I'll let you know the property I think is the best deal of the tour. Today's was.......a beautiful condo on Lawrence Drive. It is a 3 bedroom, 3 bathroom 1500 sq ft move in ready...listed for $529,000. Even included a flat screen TV!

Plus, the agent provided a really nice brunch for us. Sweet. Well, that's all I got for today. Boy it's a beautiful day out there. Our "Irish Hills" are a lovely shade of green. AAAAAhhhhh