The Week Ahead: Plenty of Data     Jobs growth for January fell short of expectations but continued at a moderate pace. However, The unemployment rate reversed course a bit, rising to 7.9 percent in January from 7.8 percent the month before. Analysts expected a 7.7 percent unemployment rate. Nonfarm Payroll jobs in January continued to grow at a moderate pace, advancing 157,000, following a gain of 196,000 in December (originally up 155,000) and an increase of 247,000 in November (previously up 161,000). The net revisions for November and December were up 156,000. The market median projection was for a 175,000 rise for January. Consumer Sentiment has really picked up the last two weeks, at 73.8 for the final January reading vs 71.3 at mid-month. The reading implies that sentiment is a... 02/03/2013

I hope that everyone has a prosperous February!  I'm wondering how long this low interest rates will be around. See my web site at www.myslohomefinder.com for all your real estate needs. The Day Ahead: Plenty of Data     Jobs growth for January fell short of expectations but continued at a moderate pace. However, The unemployment rate reversed course a bit, rising to 7.9 percent in January from 7.8 percent the month before. Analysts expected a 7.7 percent unemployment rate. Nonfarm Payroll jobs in January continued to grow at a moderate pace, advancing 157,000, following a gain of 196,000 in December (originally up 155,000) and an increase of 247,000 in November (previously up 161,000). The net revisions for November and December were up 156,000. The market median projection was for a 1... 02/01/2013

There is a great article that caught my eye in the L.A. Times by I. Scott Rechards that talks about a new subprime type loan product that could hit the market in the near future.  My view is that the home buyer should have some "skin in the game!"  By this I mean they should have at least 3.5% down payment, and I would prefer to see at least 10%.  In some cases in rural areas there are 0% down USDA loans already. We all know what happened in the go go 2001 to 2006 market.  People were putting down 0% and had no problem walking away when under water.  The problem is they took the rest of the neighborhood down with them.  We'll see if this product comes out! Housing advocates push for new type of subprime loan The Dignity Mortgage would have a higher rate for higher-risk borrowers but inc... 01/29/2013

I hope all has a great weekend.  Here is the mortgage rate update for today.  This update is brought to us by Prudential California Realty in San Luis Obispo California.  Check out my web site www.myslohomefinder.com for all your home search needs! The Week Ahead: Will be busy with plenty of economic data   Manufacturing may be regaining momentum. While civilian aircraft added huge lift to December Durables Good Orders, gains were broad based. New factory orders for durables in December jumped a monthly 4.6 percent, following a boost of 0.7 percent in November. The median market forecast was for a 1.6 percent increase. The transportation component spiked 11.9 percent after a 0.5 percent dip in November. Excluding transportation, durables orders increased 1.3 percent, following a rise of... 01/28/2013

I hope all are having a great weekend.  How long are we going to have these low interest rates?  I don't think for much longer.  We are seeing improvements in the job market and the housing market is picking up.  Looks to me like we are seeing the first signs of inflation. See my web site www.myslohomefinder.com for all your real estate needs in San Luis Obispo County. A Look At The Week Ahead: New home sales   A huge upward revision to November makes for an unexpected and very outsized comparison with December. New home sales in December plunged 7.3 percent to an annual rate of 369,000. November is now revised 22,000 higher for a 9.3 percent monthly surge to 398,000 which is by far the highest rate since the housing stimulus of April 2010. October is even revised upward, by 3,000 to 36... 01/27/2013

Here is the weekend mortgage rate update!  Hope you all have a great weekend! See my web site at www.myslohomefinder.com The Week Ahead: New home sales   A huge upward revision to November makes for an unexpected and very outsized comparison with December. New home sales in December plunged 7.3 percent to an annual rate of 369,000. November is now revised 22,000 higher for a 9.3 percent monthly surge to 398,000 which is by far the highest rate since the housing stimulus of April 2010. October is even revised upward, by 3,000 to 364,000. New homes are in short supply though December's adjusted number of homes on the market, at 151,000, is up 2,000 from November and up 4,000 from October. The fall in December's sales rate really brought up supply at the current sales rate, from a seven-ye... 01/26/2013

How do you get dead beat tenants to pay up?  Check out how this Brooklyn grandmother shames here tenant! This video has a short add in the first part, and then check out how this landlady tries to get her back rent- http://www.charter.net/tv/3/player/vendor/Tribune%20Broadcasting/player/fiveminute/asset/gnrc_18668890 Have  you heard of any other unusual ways of getting back rent?  My uncle was a landlord in Chicago and he  had his ways, but I can't speak to the legality of it.        01/24/2013

It looks like Monterey County is similar to my county San Luis Obispo to the south.  We have been feeling the same signs of shortage, with multiple bids and heavy investor interest.  Thanks to the Monterey Herald for the great article. Monterey County running out of homes to sell Prices moving up in most parts of county   By PHILLIP MOLNAR Herald Staff Writermontereyherald Posted:   01/22/2013 09:08:25 PM PST   January 24, 2013 12:24 AM GMTUpdated:   01/23/2013 04:24:57 PM PST     Monterey County is running low on homes to sell. The number of properties for sale, which industry folks call inventory, has dropped to nearly half of what it was two years ago. Real estate agents say the reason for the change is a combination of recession-era foreclosed properties being quickly snapped up, st... 01/24/2013

How long are rates going to stay low?  There is an up swing in job creation and inflation is starting to appear in real estate, rent, food and energy.  But of course food and energy aren't figured into the U.S. inflation rate!  Go figure!  Today's update is brought to us by Prudential California Realty in San Luis Obispo California. Visit my web site www.myslohomefinder.com for all your home search needs. The Day Ahead: Jobless Claims, PMI Manufacturing Index           Noticeable improvement is underway in the jobs market based on initial Jobless Claims that, at 330,000 for a 5,000 decline in the January 19 week, are exactly at a five-year low. The four-week average is nearly at a five-year low, down a sizable 8,250 to 351,750 and is trending more than 10,000 below the month-ago level.C... 01/24/2013

We still have low interest rates, and these low rates have been been the fuel to push home prices up! Inventory is dropping and prices are going up!  Real estate is again going up! The Day Ahead: Limited Data, FHFA Price Index Report           Home price indications continue to move higher. The latest FHFA (Federal Housing Finance Agency)price index is up 0.6 percent in data for November. This is the strongest rise since June. Gains in the month are led by the Mountain region, surging 2.1 percent, with the East North Central lagging, down 1.0 percent.The year-on-year rate of plus 5.6 percent is at its highest level since the bubble days of 2006. Today's report is a reminder that a rise in home prices is widely expected to be a highlight of the 2013 economy. Next data on home prices will... 01/23/2013

    What should we pay for taxes?  Is 62% of your earnings too much?  I believe it is!  As a country that was founded because of over taxation by the British now is charging 62% to the successful like Phil Mickelson.  The founding fathers would be planning a second revolt if they were here today.  I believe that total taxes should not be above 20%.  If government can't make it on that then they should cut their budget.  I recall the recent headlines in the news that said 49% of Americans don't even pay federal income tax. I would hate to see Phil leave California.  He is a very positive person, and a local hero.  He resides in Rancho Santa Fe near San Diego, and if he leaves I'm sure he will miss the great San Diego weather.  But he brings up a great question, how much taxation is too m... 01/23/2013

Mortgages are still low, but they are starting to go up!  I can see inflation slowly by surely going up!  If you have kids in college or private school you can really see it.  Also just go out and talk to anyone living on social securtity and ask them if they can live on it, like they could 20 years ago.  I have an 86 year old friend and he keeps me abreast of the changes he's seen! See my web site at www.myslohomefinder.com for all your San Luis Obispo home search needs. The Week Ahead: Limited Data           Lack of homes for sale, especially at the low end, are holding down sales of existing homes which are down 1.0 percent in the December report to an annual rate of 4.94 million which is a bit below Economist consensus. Supply is severely constrained at 4.4 months at the current sal... 01/22/2013

I have been having an ongoing discussion with some of my fellow real estate professionals that this is not the normal housing recovery.  I believe that we are seeing a supply/demand shortage of housing, especially in California.  Families are being out bid by investors, and some of the investors are buying 100's of homes in low to moderate income areas. But we are not seeing the building we need to supply the demand for low and moderate income families.  What is stopping construction is the inability to get construction loans, the fees and regulation nightmare of many cities and counties, and the fear for developers to put their own money in harms way! Below is a great piece on subject from Dr. Housing Bubble.com   It is a well written article and has some great charts. Perceptions are ... 01/21/2013

The U.S. housing market is picking up after a 6 year slump, but the European market is slumping along with the Euro economy.  See the charts below from one of my favorite Euro commentator Ambrose Evans-Pritchard. S&P sees deeper house price falls in eurozone as slump engulfs core Europe’s housing slump is engulfing large parts of the eurozone core as recession deepens, with prices to keep sliding for another two years, Standard & Poor’s has warned.   Image 1 of 5 House prices in Spain are likely to fall another 7.9pc this year and 6pc in 2014, and may need to fall a further 20pc or more to clear an overhang of 1m homes Photo: Alamy   Image 1 of 5     Image 1 of 5     Image 1 of 5     Image 1 of 5         By Ambrose Evans-Pritchard 7:37PM GMT 17 Jan 2013 103 Comments   “Downturns in the ... 01/20/2013

Do you think the housing bubble in the 2000-2006 period was the biggest bubble.  Per Doug Casey there is an even bigger one coming.  His interview on Gold Money is a must read or listen if you want to watch the video. Doug Casey: ‘We are living in the middle of the biggest bubble in history’ Episode 88: GoldMoney’s Andy Duncan talks to Doug Casey, the founder and chairman of Casey Research and the author of a new book called Totally Incorrect. They discuss the current state of global finance and the chances of an upcoming paper money collapse. Casey points out that the recovery after the 2008 financial crisis is just an illusion created by central bank money printing which will ultimately lead to very high inflation once bank lending starts to pick up again. Both men discuss what will h... 01/19/2013

California housing inventory is disappearing into the sunset per Dr. Housing Blog.  Thanks to the blog for the great article below.  We have been feeling the inventory dropping for the last year, but you don't miss it until it's gone.  Now it's almost gone, and their is a lot of buyer's remorse out there. Since 2009 all cash buyers have purchased roughly one third of all Southern California home sales.  This is a significant number and unlike the early 2000s, many of these buyers are looking to hold onto properties as rentals.  A good portion of buying has come from larger hedge funds and an increase of foreign money has caused competition on an already low selection of homes to become more pronounced.  The latest inventory report for California is telling in many ways.  Many of the lar... 01/19/2013

I have just read an excellent article by Dr. Housing Bubble.com that makes a great case study of the Orange County California city of Irvine.  I talks about all the reasons that the inventory is being bought up.  I have to agree with the points made.  It is a well written article and a must read.  Thanks to Dr. Housing Bubble! The housing market is continuing the trend from 2012 with home sales picking up and inventory disappearing into the sunset.  Today I wanted to dig deep into a high in demand area in Orange County, Irvine.  What is useful about this market is that it has a little bit of everything including flippers, foreign money buyers, big money investors, and families looking to buy.  What is incredible is how deep inventory has declined in this and many other similar markets. ... 01/19/2013

Have a great weekend and a great Martin Luther King Holiday!  This update is brought to us by Prudential California Realty in San Luis Obispo California.  My web site www.myslohomefinder.com is the best web site for searches in San Luis Obispo County California area. The week ahead: Consumer sentiment   Consumer sentiment is flat at soft levels. January's mid-month reading of 71.3 is down 1.6 points from the full month reading for December and compares with a low 70s trend during the latter part of December. Expectations continue to slip, down 1.1 points to 62.7 which is the lowest reading for this component since the aftermath of the debt-ceiling battle in 2011.   Dow is trading at 13,573-22.82, the 10 yr bond is at 1.85 from 1.86 Yesterday, . Currently mortgages areunchanged from Yest... 01/19/2013

Housing is again going to be the engine for the ecomomy!  Who would have expected that!   See this article by Bloomberg below-   Housing Accelerates in Boost to U.S. Expansion: Economy By Michelle Jamrisko - Jan 17, 2013 1:17 PM PT Sam Hodgson/Bloomberg Low borrowing costs and rising property values are spurring homebuyer traffic for the market that triggered the latest recession. The rebound in U.S. homebuilding accelerated in December, capping the best year for the industry since 2008 and adding to signs residential real estate is contributing to economic growth.   1:26 Jan. 17 (Bloomberg) -- U.S. housing starts climbed 12.1 percent last month to a 954,000 annual rate, the Commerce Department reported today in Washington. Applications for jobless benefits decreased by 37,000 to 335,00... 01/18/2013

Good morning to all!  Today's mortgage rate update is presented to you by Prudential California Realty in San Luis Obispo California.  Take advantage of the low interest rates today!  Rates are starting to creep up!  Go to www.myslohomefinder.com for all your San Luis Obispo home search needs! The Day Ahead: Consumer sentiment   Consumer sentiment is flat at soft levels. January's mid-month reading of 71.3 is down 1.6 points from the full month reading for December and compares with a low 70s trend during the latter part of December. Expectations continue to slip, down 1.1 points to 62.7 which is the lowest reading for this component since the aftermath of the debt-ceiling battle in 2011.   Dow is trading at 13,573-22.82, the 10 yr bond is at 1.85 from 1.86 Yesterday, . Currently mortga... 01/18/2013