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

The city of Atascadero might have experienced the highest price decrease when compared to the rest of the cities/towns in North San Luis Obispo County, and probably all of San Luis Obispo County for the first half of 2008. When compared to the first six months in 2007, Atascadero saw a huge drop of 25% in median home prices on stick-built single-family home sales under $1,000,000.

For the same period, only 99 stick-built single-family residences sold, a 24% drop or 32 fewer homes sold when compared to the first half of 2007. The average number of days needed to sell these properties increased by a day to 124 days.

While these declines are discouraging, Atascadero is not alone. Other areas in North and South San Luis Obispo County also saw double-digit declines in the median home prices.

For the purposes of this review, please note :-

The Cal Poly Lion Dance Team was a hit with our guests who came to celebrate the Lunar New Year with our RE/MAX team at our Morro Bay, CA office.

2008 is the Year of the Rat that began on February 7, 2008. There are 12 animals in the Chinese zodiac. Predictions on what will happen for that year and attributes of the people born during that year, are associated with the characteristics of that animal. According to legend, the rat was the first animal to show up when Buddha summoned all the animals to come to him. Thus, the rat is the first sign of the Chinese zodiac and represents the beginning of a new 12-year cycle. Those born in the Year of the Rat are considered smart, clever, resourceful, quick-witted, and courageous. Rats are energertic and cunning problem solvers. They are also responsible, protective and careful planners. Being the first in line, they're also considered leaders. Their sign is also associated with entrepreneurship.

As part of our celebration, we served a wide spread of Asian homemade treats, including Chinese noodle salad with Asian sesame seed dressing, Pineapple Shrimp rice, Chicken ramaki, tofu with bonito, variety of mu shu delicacies and warm spiced tea. Our guests enjoyed the food - in fact, we ran out, just before the event ended! The event closed with a celebratory lion dance performed by the Cal Poly Lion Dance Team. The Cal Poly Lion Dance Team comprises students from the Chinese Students Association from Cal Poly, San Luis Obispo, CA. The lion dance (not to be confused with the dragon dance) is a traditional way to bless an event, business and community at the beginning of each Lunar New Year. It was an appreciation evening for our clients and friends, so we were really happy to be able to share this special cultural celebration with the community.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

SAN LUIS OBISPO

Compared to the towns/cities on the North Coast, single-family properties in San Luis Obispo appear to sell faster. In 2007, homes sold in less than 100 days, despite the increase of 17% in the average marketing time over 2006. The median sale price improved from $500,000 in 2003 to $655,000. The 6% decline in 2007 in the median home price versus 2006 prices did not erase any earlier gains, such as the 20% price increase in 2004/2003, or the 12% improvement in 2005 over 2004. Being the metropolitan center in San Luis Obispo county, the city of San Luis Obispo has a higher sales inventory and activity. The average selling price/list price ratios for the period reviewed showed that buyers paid close to asking prices, between 1-3%, compared to 3-6% on the North Coast.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

CAMBRIA

Along the North Coast in San Luis Obispo County, Cambria probably saw the least decline in the median home prices of single-family residences. Homeowners of these properties could be said to have been mildly affected by the 1% drop in the median home prices last year, when compared to the same period a year ago. Like the neighboring towns, real estate sales in Cambria were not spared - only 105 single-family residences sold in 2007- a 20% decline when compared to 2006, and the average marketing time needed increased from 90 days in 2004 to 155 days at the end of 2007.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.

REVIEW OF THE PAST 5-YEAR PRICE / SALE TRENDS

LOS OSOS

The real estate market in Los Osos has long been plagued by the sewer moratorium and the more recent water moratorium. These factors reflect the lower prices of the properties that are situated so close to the coast. Between 2003-2005, Los Osos single-family homeowners also enjoyed double-digit growth in the median home prices. Growth stalled in 2006, and single-family homeowners did not suffer any drop in home prices until last year. Like the rest of San Luis Obispo County, home sales in Los Osos also saw declines, actually every year since 2004. The lowest number of stick-built single-family homes sold in Los Osos was in 2006, at 155 properties. That equates to a 27% drop over 2005 sales. Similarly, the average number of days needed to sell a single-family property in Los Osos also increased over the 5-year period, almost doubling by 73 days in 2005, or 55% jump from 47 days a year earlier. In 2006, the average marketing time again almost doubled - sellers took an average of 108 days before realizing any sale proceeds. The increase in average marketing time continued through 2007. At the end of last year, not only did single-family home owners in Los Osos need an average of more than four months to sell their homes, they also suffered an average of 2-3% loss in their asking prices.

**Avg. CDOM - average cumulative days on the market ** +/- (%) Difference in %

**Avg. SP/LP - average selling price vs. listed price ** Median - refers to median home prices

***Information collated from the Central Coast MLS, deemed correct but not guaranteed.