I always feel that the beginning of each year offers wonderful possibilities for change and accomplishment, as well as, the end of the stressful holiday season. I know what you're thinking. What's good about lousy housing and stock markets? Well, I can't say I like a falling stock market, but when stocks cease to be profitable, where do investors put their money? The housing market!! The housing market here went into a free fall 2+ years ago when the availability of homes doubled. However, that rate has remained stable for the past year and so have most home prices. The best deals are still at the lower end, especially for investment purposes. A small 2bedroom, 1 bathroom, on small lot, just closed escrow at $325,000. Boy, we haven't seen that in many, many years! Scenic Coast home sales, including Morro Bay, Cayucos, Los Osos and Cambria for 2005 were 501 homes sold, in 2006 there were 378 and 2007 there were 390 sold. Yes, the downward swing seems to have leveled off a bit here. Will a lower Fed rate help? Unless they lower it drastically enough so people can re-fi, the only people it does help is those with adjustable rate mortgages, high credit card balances or home equity loans. New loans are still tight with very little "free money" 100% loans, or "stated income" loans, although the government is considering new laws to help ease the re-fi process for those who need to get out of bad loans. There are some great deals here today, for investment, retirement, vacation homes, or just plain living!