Spring is in the air and it’s that time of year when we typically see lots of new properties come on the market. But we are currently seeing a historically low amount of inventory. As of this writing there are 71 single family properties for sale in the combined towns of Paso Robles, Templeton and Atascadero. But market conditions will be changing once again. The first quarter of this year 256 homes were sold in North County which is 32% fewer sales than in 2021.
And the median sale price jumped from $575,000 a year ago to $678,350 today. That is an 18% increase from last year. Even more telling is the current median listed price of $724,000 on new listings coming on the market today. We have 22% fewer homes for sale today than this time last year. Sellers are the winners in today’s market and we continue to see buyers willing to pay top dollar to live in this amazing place.
Commercial property remains a mixed bag, although industrial warehouse demand is strong. Multi-family product is in demand due to the strength in rental pricing and demand. We simply need more housing of all types so rentals are snatched up when they become available.
Ag properties in North County are in demand primarily in the wine grape category. Grape pricing has stabilized at a manageable level for both growers and wineries over the past couple of years. Escalating costs in the labor and materials category pertaining to farming are squeezing margins. Demand for Paso Robles fruit is solid. Water is and will remain the number one long term concern.
Higher end homes are enjoying their finest moment. Large ranch properties, 200 acres and above, are also receiving more interest than ever before. In chaotic environments wealth seeks safety. People don’t like to lose money and high-end quality luxury and ranch products tend to be a preferred alternative to owning riskier assets.
The pandemic shook the confidence of many people and created a feeling of unease and angst. A choked up supply chain, raging inflation, a divided country, crime and war have only added fuel to the emotional fire. These facts are all drivers of our market and a surge for the security of home ownership.
As long as pricing is strong in the urban areas North and South of us, our pricing will remain strong. The supply of homes locally will depend on new construction and the availability of properties in other states such as Idaho, Texas, and Arizona. This supply deficit will not change anytime soon. But what will change our real estate market is the inflationary surge in our economy. Rising interest rates create demand as buyers attempt to find a home before they are priced out of the market entirely.
We live in the most prosperous country in the history of the world. And we are blessed locally with natural resources and local governance that seems to reflect our communities’ ideals. This place is inclusive and welcoming. Urban refugees feel this vibe. We can’t blame them!