Michael E. Anderson
Michael E. Anderson
Broker Assoc. ABR, RSPS DRE# 01417114
(805) 698 - 3770
Anderson Home Pros Real Estate
Rita G. Anderson, Broker
CRS, GRI, SRES, e-PRO, CA 93455
(805) 698-3770

Central Coast Real Estate Values

Real Estate values on the Central Coast.

house-key-300x198Over the last few years while the bubble was bursting and everyones home value plummeted, the issue of how to place monetary value on a home came front and center. Appraisers whose job it was to estimate those pre-bubble values were assailed daily for making a valiant attempt to keep up with market conditions. Prices were changing every day and almost daily they would have to adjust their mathematical formulae. It was a daunting task to say the least.
Fast forward to todays Central Coast Real Estate Values and marketplace: The Feds, in their infinite (sic) wisdom, decided to set arbitrary conditions and limitations on how this industry was going to operate. Like most knee-jerk reactions by our members in Congress this was done with good intent but did not have the desired result. This law, The Dodd-Frank Interim Rule on Real Estate Appraisal Requirements hamstrung appraisers and stopped most, if not all home appreciation in its tracks. Since that time homeowners and Real Estate professionals have struggled, applying more realistic values based on supply and demand principles. They soon found other methods, such as using the CPI (Consumer Price Index), for instance, does not work for all homes in all neighborhoods. Continue…

Is Now The Time To Buy Or Sell A Home?

As you would expect, I get that question quite often. Here’s my best answer: First understand that all Real Estate is local, not regional or national like so many pundits wish you to believe. The only logical way to discuss this topic is by using the numbers or data available locally and your own personal situation. Although supply and demand have historically driven the marketplace, we face other challenges to discern value and make reasonable decisions.  The need to move to a new job or a new baby requiring more space sometimes changes those decisions.  You may have decided never to move from your little shack in the mountains, but a job offer at four times the salary by the beach can be a big mind-changer.  Once you have made the decision to buy or sell, use information available locally to allow you to make good choices in setting price and other parameters.

Our “local” area is defined by the individual cities that comprise the Central Coast. Whether it be Santa Maria/Orcutt, Nipomo, Arroyo Grande, Grover Beach, Pismo Beach/Shell Beach or Avila Beach, the actual numbers for each city are are surprisingly close.

Let’s start with the Santa Maria and Orcutt areas. Median home values are some of the lowest, which also creates a very high demand. In the past, the volume of homes for sale  in any given month has been around 350 homes. Currently there are 102 for sale(71% drop), with an average days on the market of 62. Median price has crept up from $204,000 to over $244,000 in the last 6 months.

Now as we look towards Nipomo, we see similar data albeit at increased value range. Previous average available was 146 homes, which has declined to 56 on the market (62%  drop). Days on market has followed this trend as well with a previous average of 135 days down to 75. Median price went from $316,000 to $369,000 in the last 6 months.

Arroyo Grande also has seen increases, although they have been a little slower due to costs associated with living in this wonderful area. Available homes went from an average of 190 to 90 (53% drop) homes for sale. Median sales price has increased from $398,000 to $519,000 in 12 months but some of that increase may be the quality of homes listed on the market.

Let’s look at one more area, Pismo Beach. This is very interesting indeed… Average amount of homes available was 90 has now dropped to 65 (28% drop). Median price has crept up from $417,000 to $599,000.

As you can tell by the numbers & data the market is indeed changing…and in a good way for most home sellers. On the buyers side, the interest rates are still at a historical low, lending is available with reasonable FICO scores, actual home prices are still very favorable and even appraisers are starting to allow value increases based on supply and demand principles.

Is this a good time to buy or sell Real Estate, I think the numbers speak for themselves. As a Real Estate broker on the Central Coast I advise all my clients to take a hard look at their finances and if the time is right for them, absolutely move into the market.

Sunny Day For A Walk

Pismo BeachLate winter and early spring strolls on the Coast bring joys to people of every age. The hills have greened up nicely, our weather is almost always nice ( wait a day or two and those clouds will go away), and things like beach-combing, wine-tasting, shopping, and visiting the missions can delight the senses. Kids like any kind of surfing, body, wind or board, while oldsters might just want to walk the beach at Pismo. The Bob Jones Trail is a nice, flat, and easy trek and starts conveniently near the Avila Barn. Buy produce and candy there and ask for directions while letting the kids pet the goats.

For those with a yearning to make themselves a part of one of the coastal communities, now is a great time to see what is on offer. Call Mike Anderson, AndersonHomePros.Com 805 698-3770 for extra great help and service