Sherry Sim, SRES, E-Pro Covering the Beautiful Central Coast CA

During January to June of 2008, the median home price on stick-built single-family homes in Grover Beach fell by 11%, from $487,500 to $434,375 when compared to the same six months in 2007. Lower-priced homes, particularly those at the low end, seems to remain unchanged at $230,000, while higher-priced homes sold lower at $740,000, versus $800,000, when compared to the same period last year.

The total number of homes sold under $1M also dropped by a huge 32%, from 56 single-family homes to 38. Conversely, and perhaps to sellers' delight, homes sold during this period, took shorter time, at an average of 110 days versus 142 days - exactly 32 fewer days (a whole month shorter!!) to sell their homes.

It will be interesting to see if the shorter marketing time frame is continuing into fall of 2008.

The above report was compiled based on the following:-

1. "AVG. DOM" refers to the average number of days on the market, or the average marketing time needed to sell the home.
2. The data is compiled from the Central Coast Multiple Listing Service as of August 22, 2008. The information is deemed accurate but not guaranteed.
3. Only stick-built single-family residences under $1M are included in this report.
4. Due to fewer $1M-plus sales, sales on similar properties selling more than $1M are excluded.
5. Condominiums, planned development units, townhouses and mobile homes are not included in this report.

Amongst the five cities in South San Luis Obispo County, Avila Beach saw the highest decrease in median home prices in the first half of 2008. When compared to the same period a year ago, the median home price in Avila Beach dropped by 18% from $902,500 to $740,000.

As noted above, the low end of the price range on stick-built single-family homes start at $825,000 in this area. Since the report covers only four sales in the first six months of 2008, versus two sales in the first half of 2007 on properties priced under $1M, the low number of sales may not be completely reflective of home prices in this seaside town where inventory is limited.

Another review will be made to include home sales over the $1M price range.

The above report was compiled based on the following:-

1. "AVG. DOM" refers to the average number of days on the market, or the average marketing time needed to sell the home.
2. The data is compiled from the Central Coast Multiple Listing Service as of August 22, 2008. The information is deemed accurate but not guaranteed.
3. Only stick-built single-family residences under $1M are included in this report.
4. Due to fewer $1M-plus sales, sales on similar properties selling more than $1M are excluded.
5. Condominiums, planned development units, townhouses and mobile homes are not included in this report.

A review of the home sales and prices in Arroyo Grande for the first six months of 2008 over the same period in 2007 shows that the median home price has declined by 16%, from $610,000 to $513,500. Except for Avila Beach, most of South San Luis Obispo County fell by 11-12%. As such, Arroyo Grande has suffered the second highest decrease at 16% in South San Luis Obispo County.

During this period in 2008, 107 stick-built single-family residences sold, with a drop of 21%, or 29 fewer sales from 2007.

Compounding the issue is that homes are also taking longer to sell. During the first half of 2008, homeowners in Arroyo Grande took an average of 152 days, versus 126 days to conclude their sales.

Another review is planned in fall to assess if home sales improved and where home prices are heading.

The above report was compiled based on the following:-

1."AVG. DOM" refers to the average number of days on the market, or the average marketing time needed to sell the home.

2. The data is compiled from the Central Coast Multiple Listing Service as of August 22, 2008. The information is deemed accurate but not guaranteed.

3. Only stick-built single-family residences under $1M are included in this report.

4. Due to fewer $1M-plus sales, sales on similar properties selling more than $1M are excluded.

5. Condominiums, planned development units, townhouses and mobile homes are not included in this report.

Among the three established communities in North San Luis Obispo County, Templeton's median home prices on stick-built single-family residences declined the least, by 14% from $587,000 to $503,000 in the first half of 2008 when compared to the same period in 2007.

Home sales on these properties dropped by 19% from 43 to 35 during the first six months of 2008 versus the same period a year ago. Sellers also faced a slightly longer time to sell their homes between January-June 2008 versus the same six months in 2007. In the first half of 2008, homes sat for 116 days; an additional week before they were sold.

Home sales continue to be sluggish in Templeton during summer of 2008. A further review and update should be available after fall of this year.

The abbreviation "AVG.DOM" refers to 'average days on the market' or the average number of days needed to promote the property. Data is obtained from the Central Coast MLS and deemed accurate as of August 21, 2008, but not guaranteed. Due to sufficient homes sold under the $1M range, only stick-built single-family homes sold under $1M are included. Similar homes costing more than $1M are excluded. Condos, PUDs, and mobile homes are not included in this study.

Reports from escrow companies and county records indicate that the highest number of foreclosures in San Luis Obispo County is occuring in Paso Robles. Could it be due to this factor that we are seeing a 1% increase in the home sales of stick-built single-family residences in the first half of 2008, when compared with the sales in 2007? It may be possible.

Additionally, it was interesting to note that unlike most areas in the County, the average marketing time of these properties shortened by six days from 117 days in the first six months of 2007 to 111 days during the same period a year ago.

Yet like most of San Luis Obispo County, median home sale prices in Paso Robles also declined by 19% to $383,750 at end of June 2008. The median sale price was $472,500 in June of 2007.

The consensus is that prices will continue to fall, at least till end of 2008, and most likely into 2009.

Please note the following factors used when compiling the statistics for this review:-