Check out the new FHA loan limits for California that are released by HUD today. 14 California counties loan limits for FHA, Fannie and Freddie jumped, up to $729,750 cap. The majority of these counties are located in San Francisco Bay Area, namely Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Cruz, Santa Clara, and five others in the Southland (Los Angeles, Orange, San Benito, Santa Barbara, and Ventura).

The new conforming limit for Freddie Mac and Fannie Mae is based on the median price in each region - at 125 percent of the median home price, or $417,000, whichever is more, up to a maximum of $729,750.

In San Luis Obispo county, the new conforming loan limit is $687,500.

More details are provided below:-

New California loan limits

Source: Department of Housing and Urban Development

Conforming loan limits for other parts of the country are expected to be announced very soon.

The Cal Poly Lion Dance Team was a hit with our guests who came to celebrate the Lunar New Year with our RE/MAX team at our Morro Bay, CA office.

2008 is the Year of the Rat that began on February 7, 2008. There are 12 animals in the Chinese zodiac. Predictions on what will happen for that year and attributes of the people born during that year, are associated with the characteristics of that animal. According to legend, the rat was the first animal to show up when Buddha summoned all the animals to come to him. Thus, the rat is the first sign of the Chinese zodiac and represents the beginning of a new 12-year cycle. Those born in the Year of the Rat are considered smart, clever, resourceful, quick-witted, and courageous. Rats are energertic and cunning problem solvers. They are also responsible, protective and careful planners. Being the first in line, they're also considered leaders. Their sign is also associated with entrepreneurship.

As part of our celebration, we served a wide spread of Asian homemade treats, including Chinese noodle salad with Asian sesame seed dressing, Pineapple Shrimp rice, Chicken ramaki, tofu with bonito, variety of mu shu delicacies and warm spiced tea. Our guests enjoyed the food - in fact, we ran out, just before the event ended! The event closed with a celebratory lion dance performed by the Cal Poly Lion Dance Team. The Cal Poly Lion Dance Team comprises students from the Chinese Students Association from Cal Poly, San Luis Obispo, CA. The lion dance (not to be confused with the dragon dance) is a traditional way to bless an event, business and community at the beginning of each Lunar New Year. It was an appreciation evening for our clients and friends, so we were really happy to be able to share this special cultural celebration with the community.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

SAN LUIS OBISPO

Compared to the towns/cities on the North Coast, single-family properties in San Luis Obispo appear to sell faster. In 2007, homes sold in less than 100 days, despite the increase of 17% in the average marketing time over 2006. The median sale price improved from $500,000 in 2003 to $655,000. The 6% decline in 2007 in the median home price versus 2006 prices did not erase any earlier gains, such as the 20% price increase in 2004/2003, or the 12% improvement in 2005 over 2004. Being the metropolitan center in San Luis Obispo county, the city of San Luis Obispo has a higher sales inventory and activity. The average selling price/list price ratios for the period reviewed showed that buyers paid close to asking prices, between 1-3%, compared to 3-6% on the North Coast.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

CAMBRIA

Along the North Coast in San Luis Obispo County, Cambria probably saw the least decline in the median home prices of single-family residences. Homeowners of these properties could be said to have been mildly affected by the 1% drop in the median home prices last year, when compared to the same period a year ago. Like the neighboring towns, real estate sales in Cambria were not spared - only 105 single-family residences sold in 2007- a 20% decline when compared to 2006, and the average marketing time needed increased from 90 days in 2004 to 155 days at the end of 2007.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

LOS OSOS

The real estate market in Los Osos has long been plagued by the sewer moratorium and the more recent water moratorium. These factors reflect the lower prices of the properties that are situated so close to the coast. Between 2003-2005, Los Osos single-family homeowners also enjoyed double-digit growth in the median home prices. Growth stalled in 2006, and single-family homeowners did not suffer any drop in home prices until last year. Like the rest of San Luis Obispo County, home sales in Los Osos also saw declines, actually every year since 2004. The lowest number of stick-built single-family homes sold in Los Osos was in 2006, at 155 properties. That equates to a 27% drop over 2005 sales. Similarly, the average number of days needed to sell a single-family property in Los Osos also increased over the 5-year period, almost doubling by 73 days in 2005, or 55% jump from 47 days a year earlier. In 2006, the average marketing time again almost doubled - sellers took an average of 108 days before realizing any sale proceeds. The increase in average marketing time continued through 2007. At the end of last year, not only did single-family home owners in Los Osos need an average of more than four months to sell their homes, they also suffered an average of 2-3% loss in their asking prices.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

MORRO BAY

The above statistics reveal that homeowners of single-family residences in Morro Bay saw a huge jump in median price appreciation by 25% in 2004 when compared to 2003. The median home price appreciation fell by 8% a year later, and continued to decline each year. In 2006, the median home price dropped by 5% in 2006 and a further 7% last year. Year over year sales also declined from 2004. The highest drop in the number of single-family home sales was the 33% drop in 2005 when compared to the previous year. Last year, Morro Bay suffered a 10% drop in home sales. Buyers were paying about 96% of the listed prices in 2007; just 1% higher than 2006, and 1% lower than 2005 and 2004. The average marketing time to sell a single-family home has more than doubled, i.e. by 63% in 2006. The 106 days needed in 2006 have increased to 132 in 2007, whereby the average time is lengthened by another 25%.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

CAYUCOS

Cayucos is not immune to the dampened market that we are experiencing in 2008. During the past five years, Cayucos enjoyed two double-digit growths in median home price appreciation of 21% in 2004 and 26% in 2005. The price increase dropped to 6% in 2006 when compared to the previous year. Last year, Cayucos homeowners saw a 11% drop in the median home prices. On the upside, the number of single-family residences improved by 16% in 2007; a huge improvement compared to the 37% decrease in 2006 or the drop of 17% in 2005. Conversely, the average time taken to sell a home in Cayucos is lengthened by 41%, or 157 days versus 111 days in 2006, or the much shorter period of 98 days in 2005. The ratio between the selling price and listed price on home sales in 2007 and 2006 also fell by 3% when compared to a year earlier.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

Residents of the Central Coast are invited to a unique Open House on Thursday, February 7, as RE/MAX Seven Cities ushers in the Lunar New Year!

As Western culture rings in the New Year every January, Chinese culture similarly celebrates the New Year, albeit a little later in the Winter. Chinese culture celebrates the new year with the coming together of friends and family, all sharing delicious food, and generally with the creating of an atmosphere of happiness and prosperity. It's a fun way for us all to get together with colleagues and customers to welcome 2008, the "Year of the Rat"!

In addition to a wide array of Asian foods and treats, celebrants will have the opportunity to enjoy a lion dance performance by the Cal Poly Lion Dance Team.

Anyone wishing to usher in the Lunar New Year is invited to join the staff of RE/MAX Seven Cities Realty at 815 Morro Bay Boulevard, Morro Bay, CA 93442. Bring your good karma, your good wishes for prosperity and general good nature and celebrate the "Year of the Rat" from 3.00 p.m to 7.00 p.m. on February 7, 2008!

Effective July 1st, 2007, residents of San Luis Obispo will face a 13% increase in their water bills. This harsh increase follows a 12% increase that was imposed last year. The double-digit rise will be continued by another 13% next year. The city will continue to implement the water-rate increases through 2012, as a way to raise funds for the Nacimento Lake Water Project, and staff seven police and two fire positions. The Nacimento Lake Water Project is a 45-mile pipeline to bring water from the Nacimento Lake. Currently, there are 14,400 water bill payers in the city of San Luis Obispo. The approximate 11% who objected to the rate increase could not prevent the passing of the water-rate increase as 51% of the 14,400 water bill payers' signatures are needed.

A friend of mine sent the following to me. If this is being implemented, let us all beware, 'cos it's not going to be fun to face any of these fines!

New California Laws effective 7/1/07 - New Driving Fines for 2007

1. Carpool lane - 1st time $1068.50 starting 7/1/07 (The $271 posted
on the highway is old). Don't do it again because the fine will be doubled on the 2nd time. 3rd time- fines triple, and by 4th time, the license will be suspended.

2. Incorrect lane change - $380. Don't cross the lane on solid lines or intersections.

3. Block intersection - $485

4. Driving on the shoulder - $450

5. Cell phone use in the construction zone. - Double fine as of 07/01/07.
Cell phone use must be "hands free" while driving.

6. Passengers over 18 not in their seatbelts - both passengers and drivers will get tickets .

7. Speeders can only drive 3 miles above the limit.

8. DUI = JAIL (Stays on your driving record for 10 years!)

9. As of 07/01/07 cell phone use must be "hands free" while driving.
Ticket is $285. They will be looking for this like crazy - it's easy money for police department.

If true, these are hefty fines and not to be taken lightly.

Happy driving!