2021 North County 2nd Quarter Real Estate Review

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2nd Quarter Real Estate Review – North San Luis Obispo County

This 2021 second quarter Real Estate Report, for North County, reflects the remarkable surge in demand for properties in our Community. The pricing numbers far surpass any historical comparisons. Our economic recovery is in full swing with different levels of activity in certain property categories.

450 homes sold in the second quarter which is 50% more sales than the pandemic influenced 305 sales at this time last year. The median sales price climbed a whopping 27% to $649,000 from $510,000.

Inventory is shrinking with only 150 available homes for sale today in the North County. That inventory number represents 2 ½ months’ worth of homes. A balanced market generally has 6 to 7 months of inventory. In 2007 we had 1200 homes for sale in North County. This is a reflection of more than just a low interest rate.

There is more Commercial activity today than at any time in recent years. Commercial pricing has not been inflated which makes projects more attractive. Developers are looking to do multi-family, industrial, and hotel projects. Retail and office demand remains tepid. Large Ranch properties are seeing growing interest from Buyers.

Some larger residential projects are nearing or at groundbreaking status. Material costs and COVID have delayed some of these projects. We think that smaller builders will get back into the game as material costs drop and demand remains firm. Buildable in-fill lots are beginning to look attractive for spec development.

Our wine sales have been very good. Tourism has rebounded and it’s stronger than ever historically. Grape pricing is much stronger going into this harvest. There are a handful of vineyard properties for sale and activity is at a moderate level. There remains a gap between Seller price expectations and what Buyers are willing to pay for vineyard properties.

What is going on? Where is the tipping point?

There is currently no let-up in the migration out of the urban areas. A strong economy, low interest rates, and strong personal savings are continuing to fuel this market wherein multiple offers on a home are now commonplace.

New FHA 40 Year Loan Program

Real estate prices in both Los Angeles and the Bay Area remain strong which provides the capital to existing homeowners to secure their dream in our very desirable area. But the cost of homeownership for first-time homebuyers is getting so high that first-time homebuyers are not able to make that initial purchase. As a result, FHA is introducing a 40 year home loan program beginning sometime in October. This should help those first-time buyers and continue this seller market trend for an extended time. And as COVID wanes and people are feeling more comfortable leaving their nests, we should have more sellers in North County.

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2020 North San Luis Obispo County Real Estate Review and 2021 Forecast

Home buying demand has been fierce in North County since June 2020. San Luis Obispo County is experiencing a generational shift in Real Estate demand and activity. A seemingly perfect storm of low-interest rates, remote workplace options, deteriorating urban environments, and the high cost of city living have created an exodus of urban refugees seeking a higher quality of life and a lower cost of housing. North County is in the right place at the right time to service this increased buyer demand.

Our 2020 year started out strong but dipped sharply with COVID in early Spring. Once our markets opened back, and real estate was categorized as an “essential business” we have seen very strong demand and supply limitations. Sellers are reluctant to list a property with the COVID virus still working its way through our County, and unless a seller is leaving the State, there very few reasons to leave this County. The median price will finish the year at $575,000 versus $505,000 in 2019. That’s a 15% increase, year to year, and is similar to what many communities experienced statewide.

There were 340 available homes for purchase a year ago versus 194 available today. It’s the strongest seller’s market in decades. The actual number of sold homes rose 7% year to year. More homes would sell if more homes were available.

Ranch properties and Vineyards have enjoyed an increase in demand but supply still is ample in these categories. Grape prices rebounded a bit as smoke taint from the North Coast caused the bulk market inventory to be depleted. There is good value in these larger offerings for buyers.

In Commercial properties, multi-family and rental homes are still in strong demand. Downtown retail and hospitality properties are dormant for health reasons but the vacation rental market is still strong even with the many shutdowns from Sacramento.

Our City leaders in Paso Robles have managed outside elements of chaos and COVID challenges with calm, clarity, and gracious leadership. We have something good in North County. Our police and fire personnel are awesome. Safety is a number one quality of life issue, and we have safety.

January is beginning strong in 2021 and we are expecting this year to continue the uphill pace fueled by record low-interest rates, low housing supply, and new work from home policies. Fully 1/3 of homebuyers surveyed said that they would move if their remote working situation continued once the pandemic is brought under control. And if COVID does recede from controlling our daily lives, our national economy is expected to expand 3% in 2021.

North County is a citizen governed community that will continue to face many challenges in the future. However, we have a wine industry and hospitality industry that is world-class. Politically and financially our community has stood tall as many have failed. We have natural resources that are rich and accessible. We will see strong buyer demand in this first half of 2021. This is an optimum time for sellers.

Call me today if I can assist you, your family or friends with your real estate needs.

Happy Trails in 2021!

P.S. Call me anytime for advice if you are remodeling, adding solar, or thinking of making major changes to your home. I am happy to give advice to ensure that you will receive the biggest Bang for your Buck! Kitchens are a big attention grabber i.e. extra storage and newer cabinetry is hugely popular. Also, garage space has become increasingly important for storage and as possible personal gym areas. And cleanliness has increased in importance for most buyers. This industry changes often so make sure you have the latest info from me and all of my partners at RE/MAX Parkside Real Estate

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Cool off, Relax, Good News!

2020 2nd Quarter North San Luis Obispo County

Real Estate Review

Cooling off in Morro Bay. The weather is fine!!

The market returns!  At the beginning of the year, our market was on the same trajectory path as 2018 and 2019.  Meaning, listings, sales, and pending transactions were on the same upswing as well as some price appreciation due to low inventory.  March and April took a dive do to Covid-19.  The real estate community, nationwide, was unable to show homes because of the “shelter in place” orders and yet some existing sales marched ahead and closed under these extraordinary circumstances.

In some instances, houses sold from just the virtual tours online.  Despite a worldwide pandemic, people still have reasons to move.  So the real estate industry was thankfully labeled “essential” and we went back to work with restrictions of masks, gloves, booties and later on hand sanitizers and disinfecting guidelines. 

March and April gave way to a May wherein restrictions on many business began to be lifted.  The real estate market has been gaining speed ever since and as we are returning to a more “normal” way of life, business is taking off again.  There is pent up demand for housing and sellers are currently less concerned about buyers entering their homes.  Especially now that all buyers and their agents are required to wear masks. 

Our local market has always followed the LA and San Francisco real estate market activity.  And Southern California activity rebounded after its’ worst April on record.   Low mortgage rates, and pent up demand are fueling the upswing.  And combined with that, many are recognizing the need for a larger home so they can continue to work from home in the future. 

Our “Spring” buyers are now our “Summer” buyers.  I am seeing houses sell that never reach the open market because of the relationships that agents have with their basket of clients.  We are seeing multiple offers on well priced inventory.  But it could be months before we see the long term affect that the pandemic has had on real estate. 

Yes, these continue to be uncertain times.  The movement to eliminate racial and social injustice is extremely important, but the violence that has accompanied it leaves people hesitant to know what to do next.  We have come a long way towards the return of our local real estate market but we need the world economy to recover as well.  Every market is now subject to worldwide economic, political, social and health changes. 

But we live in a place that is desired by many.  Rural, spacious, convenient to beaches and big cites, safe (thanks to our amazing police and sheriff departments), and full of amazing recreational opportunities.  This area will continue to outpace many other places in California because it is such an attractive place to live. 

Normally, I have more statistics for your use in this report, but for now, know that the real estate market (along with every other industry in our country) took a major dive (why focus on that?)  and is now on a positive upswing.   Let’s be grateful for all we have been given in this blessed place. 

“Always Expect the Best!”

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COVID-19 & Real Estate Now

This is an update to my newsletter from the end of March. You can watch the attached video or simply read the information here.

I wanted to give you a quick update to amend the Real estate review that I sent out on March 23.

As of today, April 2, in San Luis Obispo County we are now allowed to show homes and list properties.  We can actually go back to work but it’s not  “business as usual”…..It’s doing our best to proceed in this business within the new guidelines that we have been given through the California Association of Realtors. 

Basically, before you or any contractors, appraisers or inspectors enter a home – you will need to sign a form stating that you will be wearing protective items like a mask, sterile gloves and booties.  I will be providing those to my listings and I expect other agents will as well.  You will also be certifying that you are not currently sick and you don’t to your knowledge have Coronavirus.  Also, only 2 people at one time can walk through a house, no children and you are asked to limit your time inside to 5 minutes.

 However, actually entering a home at this time is really just meant to supplement a virtual tour or viewing photos online and driving through a neighborhood.

We are listing houses.  We are showing houses.  We are selling houses and we are closing houses.  But the timing and rules have changed because of the current pandemic.  And, the County of San Luis Obispo can change their guidelines for us anytime they feel it’s not in the publics best interest to do this.  My understanding is that in LA and Ventura Counties right now, they cannot show homes at all. 

And everyone has to decide for themselves, both clients and agents, if they want to move ahead in this process.  This is not for everyone.

But I’m ready when you are ready. 

Feel free to check in with me if I can help answer any questions for you.

Let’s all do our best to help get this virus stamped out as soon as possible so we CAN get back to “Business as Usual”

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Real Estate and Covid-19

March 24, 2020

Real Estate Market Update North County Real Estate

The real estate world before Covid-19 looked very good.  Inventory was low and as we approached Spring, many sellers were getting ready to list.  We had an increased number of buyers shopping earlier than we normally see, and I believe this was a function of low interest rates, increased demand for those who want to live in this area, and the desire for many to jump into a home here before the prices jumped even higher.  Our first 2 ½ months of this year, both here and in the State were very active.

At the end of February this year, single family homes were on the market for an average of 38 days, and our County had 4.8 months of inventory available…a sellers market.  The median list price for a North County home was $435,600.

Spanish Style home and pool in Paso Robles

With the strong economic growth we have been experiencing, low mortgage rates and more millennials entering their peak age for home buying, we now have more buyers looking for a home than at any time in the past five years.  In fact, January 2020 was the strongest January for purchase mortgage applications in 11 years!

Last Thursday March 19 we were urged by the Governor to cease any property showings or face to face meeting with clients.

The California Association of Realtors (CAR) Today is working with the Governor’s office to have Real Estate classified as an essential service so we can continue to show houses and list properties.

It’s likely too soon to issue any real statistics to show you what is happening, but with the Shelter in Place order, and the stock market declines, most of us expect this situation to some degree to negatively affect our business.  But Sellers still want to sell.  And as effective as a video tour can be, it will never replace walking through a house in person.  And Buyers, who see amazing interest rates under 3%, are even more interested in purchasing a home. However, with low inventory and an inability to see inside a home we are seeing fewer sales.  While the 10 year Treasury may continue to drop, an accompanying drop of the 30 year fixed rate mortgage may not drop in concert with that.  The prediction is that actual rates for the second half of the year will be in the 3.2 to 3.5% range. 

Vintage home in Atascadero

Today, lenders are flooded with refinance requests.  I know of some companies who are not accepting any more refis until they have worked through applications on hand.  Let me know if you need a referral to someone who can help you right now.

On the positive side, we are seeing existing sales still moving forward, even if the appraisal has not yet occurred.  The federal government guidelines have been loosened to allow appraisers to conduct a “drive by” or external only appraisals.  This will be a huge help to our industry in the coming weeks.

The title and escrow companies are continuing to close transactions.  One escrow officer told me today that although the office door is locked, they are allowing in one client at a time by appointment for signing and notarization of all necessary documents.

Currently CAR expects negative economic growth in this next quarter, and state that in fact, we are in the midst of a recession all ready.  The slow down and it’s length is largely dependent on how long the virus lasts, and if the economy can get a “re-start” quickly enough.

In the meantime, I came across this website for all things Corona Virus.  Lots of great links for real and up to date information as well as ideas for keeping you from going crazy as you “Shelter at Home”.   For instance, there’s a link to “Every Oscar Best Picture Ever”. 


How can I best counsel you today?  First of all, please know that we are positioned to bounce back in todays market. 

Home on Acreage in Templeton

It may be that as a seller you will need to expect a longer marketing time as markets readjust.  But know that you have not missed the window of opportunity.  Although the homebuying season started early this year, it is statistically known that homes listed in May generally sell for more than other times of the year.

And as a buyer, inventory will be low until sellers once again feel comfortable enough to allow showings.  Also, we need to remember that your job security is tantamount to obtaining a loan.  You may be either be job hunting or in a position where you job security is tenuous.  But remember that our interest rates this year are expected to remain in the low 3% range.

Will the price of homes change?  Does the drop in the value of the stock market signal an accompanying drop in the prices of homes?  During the past recession, when the S&P dropped 51% between 2007 and 2009, real estate prices dropped 18.6%.   So no, there is not a direct correlation.  A recession does not equal a housing crisis.

This change in our economy is closer to a 9/11 event than to the downturn from a recession.  9/11 produced fear, anxiety and shock in our markets.  But in the three years following the 9/11 crash, homes continued to appreciate at a healthy rate.  Think of it more as what happens in any part of the country that experiences a long, heavy snowstorm.  Everything has to pause.

I feel that when the country begins to function normally again, the real estate market will come roaring back because of pent up demand.  Goldman Sachs predicts a GDP of -5% in our 2nd quarter, a +3% in the 3rd quarter, and a +4% GDP in the 4th quarter.  Beyond that, they predict even further strong gains in early 2021.

FHA is enacting an immediate foreclosure and eviction moratorium for single family homeowners for FHA insured mortgages for the next 60 days.  This is a wonderful move by our government to help alleviate concerns for those homeowners living from paycheck to paycheck.   We didn’t have this help back in 2008  Also, our homeowners learned something from the Great Recession and  the amount of equity pulled from homes today is ¼ of what it was at the time of the Great Recession.  Most people have learned that it’s a bad idea to use your home as an ATM, so financially, our country is stronger than it was 15 years ago.

Owning a home is the number one way that households without inherited wealth, gain wealth.

The road home…Atascadero

Affordability will continue to be a challenge, but the mortgage rate environment will be really positive.  We live in a highly desirable area and the problems that the large cities have experienced in the past weeks have been felt here to a much lesser degree.  People will be moving here this year.  We have much to be thankful for! 

I am grateful to be in this ever changing, ever challenging business and to have my clients as my friends.  And I’m also grateful that as far as I know, Covid-19 has not affected the health of any of you.  So stay healthy, be careful and please let me know if I can answer any real estate questions for you in the future!  My phone is always ON!

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What About the Kitchen Sink?

Well, it’s included when you buy a house so for buyers the answer is an easy one.  Keep it or replace it.  Well, maybe an easy one.

aerial view of a kitchen sink and kitchen counter

Styles of Sinks

The choices today for kitchen sinks are vast.  First, you’ll need to know if you want a 2 tub sink or a single tub or 2 tubs with a garbage disposal area in the middle.  One reason that we have these choices is because we have dishwashers.  In the “old days” there were no dishwashers so 2 tubs was essential.  One tub was used for the soapy water to wash while the other was used for clear water to rinse.  Then the dishes were stacked on a rack to the side to dry. 

Nowadays, a single sink is very popular for rinsing dishes going into the dishwasher and for cleaning those large serving pieces, cookie sheets, and stock pots.  You decide.

Materials of Sinks

The next choice is the material.  Really, the original sinks (waaay back) were wood.  Then when those didn’t hold up, they used aluminium or metal tubs.  Then the “tub” was ultimately built into the wood counters with built in faucets.  But the nicest homes had white porcelain sinks which lasted a long time and didn’t rust. 

Today, the choices are porcelain, stainless steel, granite, composite stone, and other composites with plastics.  There are a variety of colors as well.  Your choices are great enough that you can have a marital dispute over them.  I’ll leave that to you!

view of a kitchen with an island

Real life scenarios

This past week, I visited two homes coming on the market soon in San Luis Obispo County.  Both of the owners of the houses asked me what to do about their old kitchen sinks.  One home had a large, 2 tub porcelain sink but the edge had been damaged and poorly repaired.  They asked if it should be replaced.  My answer was no.  This was a kitchen that needed to be completely remodeled including new counters and there is no reason to replace a bad sink, put a nice new one in and then have the buyers say they hate the countertops.  Let the buyer decide.

The other home I visited had been built in the ’50s and its kitchen badly needs a remodel.  But the original kitchen sink was still there.  A very unusual design with 2 tubs except that one of the tubs was extra large and deep.  My advice to the sellers was to definitely save the sink!  A buyer could then come in, have it restored and keep the original, unique part of the home.

Every property is different, every home, every buyer and nowadays, just about every kitchen sink!   The choices have never been better!!

What is your favorite style of sink?

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San Luis Obispo Real Estate News Update 2019

2018 North County Real Estate Review and 2019 Real Estate Forecast

House in San Luis Obispo County

This is a look back into 2018 real estate trends as well as some thoughts as to how we might see those trends continue or change into 2019.

During our peak buying season which is June and July in North County, we began to see buyer resistance to the increasing prices of single family residences in our area.  Perhaps this hesitation was due to interest rate increases, fear of another recession, or just the continuing anxiety in our Country in general that we see broadcast on the new each evening.  Whatever the cause of this change it did not take long for Sellers to adjust their pricing in order to make things happen.  But because of buyer hesitation, we sold about 100 less homes in 2018 versus 2017, with the average price increasing about 5% to an average price of $460,000.  Inventory is trending upward but choices still remain low, especially at the lower price points.

More homes over a million dollars sold in 2018 than ever before in North County.  While this segment of the market is relatively narrow it illustrates a couple of key points.  Number one is that urban refugee buyers from LA and the Bay Area, see great cost value in our properties and our area.  Most of these million dollar plus properties sell below replacement cost so that is an added attraction to the inbound buyer.  Number two is that a number of homes with vineyards sold this year as buyers realized the long term affects the SLO County Water Ordinance would have on future vineyard installations.  Many of these sellers with vineyards are also dealing with the prospect of replanting due to disease, age and varietal preferences.  Sellers adjusted their expectations and buyers bought.

The wine grape market is facing an uncertain path this coming year.  Some varietals were very soft in pricing at harvests end and some even went unpicked.  There is still demand to plant on the west side. 

Our rental market took a breather mid-year but that ended quickly.  Rents are still strong and so is demand for multi-family product.  Commercial and industrial space as rentals are in demand and most buildings are finding tenants.  Templeton will see an explosion of medical/hospitality space in the next decade.  Hotels and RV parks have been built and more are on the way.  Tourists come, spend money and leave.  That’s nice.

California is the sixth largest Country in the world and the Central Coast is one of the most desirable and dynamic communities in the State.  The following are some trends we are seeing in our office.  Significant wealth is shopping and buying in North County.  The cost of building and securing entitlements continues to rise making buying existing built properties much more desirable compared to building.  Across the Country property taxes are rising due to government budget shortfalls.  Proposition 13 is an enormous benefit for the real estate investor.  Our wine industry is growing and their ceiling is high.  More buyers are considering real estate as an investment, versus traditional equity markets.  Water is and will continue to be the number one issue for North County.   People leaving North County for Nevada, Texas and Idaho are being replaced by urban refugees from the Bay Area and LA. 

I believe North County is the place where we will continue to see an increase in tourism, and its desirability will grow for those who are looking for a better place to live.  Opportunities in 2019 for buyers and sellers will happen.  Interest rates are favorable, now that the market has taken some time to adjust.   Our local economy is strong.  No one has it better than we do!

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Real Estate Downshift – October 2018

Real Estate Downshift      downshift

When you are in the business of selling real estate, it’s sometimes hard to say what’s going on until you have the data to prove what might be just a feeling. And each of us as independent contractors working for a brokerage has a unique look into the marketplace. So when we have a chance as agents to meet and talk about what’s going on today, it is always a great opportunity to learn.

Last week I met with a number of seasoned professionals in my RE/MAX office. We all shared a similar outlook. We are seeing fewer showings on listings, and are writing fewer deals. And today only certain segments of the market seem to be thriving. The homes that are in very good condition and are very well priced can still see multiple offers. That tells us that buyers are still willing to write offers, but are very selective on what they are purchasing. We are also seeing an inventory reduction in large million dollar plus estate and vineyard parcels. We know, therefore, that there is serious capital on the market looking for a worthwhile investment.

What else do we know? We know that the interest rates we have enjoyed in the past few Union Rdyears are going away. The 3 – 4% rate is gone and we are creeping into the 5%+ territory. That’s a Real Estate Downshift.  While this may not seem like a huge difference to a buyer, it is enough to cause a market on the edge of affordability to slow down.

With little to no new construction in our area, existing home prices have increased based on lack of supply.   And since that increase has far outstripped increasing incomes here, that interest rate change further erodes the affordability of our area.

Higher interest rates and more expensive inventory has increased the time homes are sitting on the market. We now have about a 3 to 4 month supply. That means a Real Estate Downshift that buyers can take a bit more time deciding what to buy, sellers need to negotiate more and have their properties in tip top shape, and instead of listing their home $5000 higher than their neighbor sold for last month, they may need to underprice their home by that amount because there are 2 other properties also for sale on their street.  IMG_0624

A downshift from a pure sellers market to a more evenly weighted transaction….I’d say 5th gear to 4th for sure, and possibly even to 3rd gear as we take the turn ahead.

The great news is that sellers are still achieving sold equity returns on their homes when they do decide to sell. Possibly not what they had hoped, but if priced competitively, their home will sell. No one is making any more of them in North County right now.

I’ll have some solid statistics for you at year end.

30 years selling real estate to better serve you!    Joanie



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2017 North County Real Estate Review and Forecast

2017 North County Real Estate Review and Forecast

This is a look back at North County Real Estate in 2017 and some thoughts on the coming year. It’s a privilege to live and work in such a desirable community.

Unit sales for in town homes topped 900 properties for the second year in a row.   The average sale price of residential single family homes in North County was $457,000 which reflects a 6% increase over 2016. Homes priced under $500,000 are by far the strongest market in our community. We still have historically low inventory and new home Paso Robles Westsideconstruction is minimal. Consistent demand coupled with lower supply is where we are heading in 2018.

Homes on acreage really jumped in price to an average sale price of $742,000 which reflects a strong 12% year to year increase. These properties had been lagging a bit but pricing is catching up. Atascadero and Templeton homes on acreage led the way. Million dollar homes also got some traction in 2017. The number of million dollar sales jumped up to 54 units from 38 in 2016. There is still a year and a half of inventory in this category but we did move forward. Million dollar homes are still selling for well below replacement value.

Our rental market is still strong with little vacancy. However, there are close to 200 apartment units being built in North County in 2018. Also, we are beginning to see more infill residential construction throughout the area. If lending conditions remain favorable, we should see a significant increase in new construction by 2019.

The Wine Industry continues to drive a hospitality and entertainment industry that is actively accelerating. There are many new hotels and restaurants planned and under construction. Paso Robles is the focal point of most of this economic activity. Wine grape prices are solid and producing vineyard prices are firm. Even though millennials are a quarter of the population these young people consume 42% of the wine product in the U.S.

View of Paso Robles from Daou Winery

View of Paso Robles from Daou Vineyards

Commercial real estate has been consistent. Retail is a little spotty with internet sales so strong. Financial industries like banks are growing. Office space is stable. Industrial is still driven by user demand but the Wine Industry is providing demand for storage, crush locations, etc. Multi-family sells quickly if lit is priced right.

Conversations about the real estate bubble have been replaced by the Tax Reform situation. There is always the next ‘woe is me’ current event for the media to blow out of proportion. Tax Reform will likely prove helpful for a majority of the people in our Country, but tough for others. No law has ever or will be passed which is a win for 100% of the people.

We have lived for eight years with little growth and Real Estate has been driven by cheap interest rates. Now the government is trying to replace a transfer of wealth economy into a growth economy. So let’s see what happens. Whatever happens, we will compete.

North County is thriving for many reasons. We have a wealth of natural beauty and ideal weather. Our local government helps our community compete and grow. We have wonderful community leadership and citizen participation. Individuals have invested large sums of money into our Ag and Hospitality Industries. We have a wonderful new Regional

Lovely new destination hotel in Paso Robles

Lovely new destination hotel in Paso Robles


Airport and strong economic activity in our Medical community. All three North County communities continue to improve in liveablity. There are many reasons to see that the North County will continue to thrive

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Real Estate Market Predictions 2017

Market Predictions 2017

All real estate is local but market predictions are always interesting. The ups and downs of a market are very specific to where in the USA it is located. However, there are national trends that can be seen and used as a guide for what to expect in the real estate market this year.

For instance, we expect to see more homes sold in 2017 than in 2016, with slightly higher interest rates (perhaps up a ½ percentage point), and with a 3 to 4% higher cost than last year. Appreciation last year was about 5 -6%.

Just Listed

Just Listed

As much as we love to see the value of our home increase, we don’t want to see that change year to year too greatly. We have all had our fill of rapid home price increases, and subsequent rapid value decreases. So a gentle uptick is pretty comforting these days when most of us consider our home to be our largest financial asset.

However, we do have inventory woes. Despite increasing home values, many homeowners are not eager to sell. Because of the lack of replacement inventory, the high price of that replacement inventory and the fact that so many homeowners just refinanced their homes and plan to stay put longer, our inventory is very low right now. For instance, in February 2016, there were 961 single family homes (all types) listed in San Luis Obispo County. In February 2017 there were 717 homes listed. That’s big drop in available homes.

More people want to live here.  But during the recession only a handful of homes were constructed. The City of Paso Robles once had a moratorium on the number building permits that could be issued each year.  Now they are lauding any new construction that is coming online.

When we have more buyers than sellers, the existing inventory sells more quickly and at a higher price. Prices will naturally increase. It’s not real estate agents who drive the market, it is the market that drives the market. And 2017 looks like it will be a driven market.

I was recently searching for an investment property for a client and in Paso Robles, between $300 and $400,000 I only had 10 properties for her to even consider. After reviewing the inventory, there was only one she was interested in viewing. Now we are in a “let’s see what comes up next” mode. In fact, I have 2 or 3 clients in the same boat. We are actively waiting and searching for what they want.House Framing

My market predictions say that it will be an interesting market this year.   Very often the Spring is the busiest season, but with the afore mentioned statistics, the entire year may be strong to the end.

If you plan to purchase or sell this year, it is best to contact your real estate agent (hopefully me) now.   Planning ahead will be your best strategy!

And Always Expect the Best!!


smsignature copy

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