Sonsie Conroy

San Luis Obispo County suffered less during the housing market bust than most other areas of California, and we are recovering faster as well.

Looking at the leading indicators, it appears that the median price of housing bottomed out around January or February of this year-along with nearly every other aspect of the economy. At that time, the stock market hit its lowest point, consumer confidence was at rock bottom, retail sales were dismal, and unemployment was at its highest point in recent years.

At the same time, however, housing sales were actually increasing as prices came down. Actual sales bottomed out in California in 2007, and have risen steadily since then as prices have come down. The median price of a home in California in August, 2009 was $292,960, off from a peak of $594,530 in May 2007.

In San Luis Obispo County, our median home price is off 38.4%, a smaller loss than about 2/3 of the state has felt. The city of SLO shows a greater increase in sales from 2008 to 2009 than any other community in the county, with a higher median price ($512,500 in August of this year). Prices in SLO are off only 0.6% over last year. The county has fewer distressed sales (REOs, short sales, etc.), at 36% of total sales, than any other area except Marin County (with 26%). In contrast, Riverside County's ratio is 80%, and Los Angeles County's is 58%.

As most of us are aware, the "affordability index" in CA has been poor for some years, meaning that most people can't afford to buy a home in the community where they live. After dropping to a low of 30% in 2007, the index rebounded to almost 70% in the first quarter of 2009-a sign that most people can now afford to live where they work.

The first-time home buyer credit has been extended into 2010, and a new credit, for existing homeowners wanting to buy another house, has been added.

Finally, interest rates are at an historic low. Here in SLO County, interest on a 30-year fixed loan for under $417,000 runs from 4.625% to 4.875% . . . an incredible bargain. These low rates, combined with the drop in home prices and the current local inventory, makes this an ideal time to buy a home.

Despite the low interest rates, it is still difficult to obtain a mortgage due to more stringent requirements regarding borrower income, home values, etc. Be prepared to spend extra time securing financing.

The most serious wild card that could affect the housing market next year is probably unemployment, which remains higher in CA than in the U.S. as a whole (12.1% versus 10.0%).

While there is no guarantee that the market will continue to improve, it remains an excellent time to buy, especially if you are a first-time homeowner or can qualify for the new $6500 tax credit for existing homeowners. There is a good inventory of homes for sale in the county, the median price is at a very affordable level, and there are many bargains to be had.

Oh, what a deal! $489,000 for a 2000+ s.f. home in San Luis Obispo's most exclusive neighborhood: Country Club. This sad case, with fabulous views of the golf course and sandwiched in between homes worth easily twice as much, is in desperate need of an owner with $100,000 to invest in fixing, cleaning, repainting, and generally bringing this spacious home back to life.

The price is so good, and the bargain so rare, it's hard to imagine that there isn't someone willing to kiss this frog and turn it into a handsome prince. With neighborhood prices averaging about $1M, you could spend whatever is needed and still make a profit. Or live in it yourself and enjoy the benefits of this beautiful, quiet, and upscale residential neighborhood.

I'm looking for a buyer to adopt this house and love it back into great condition. Call me! 805-235-2351

The second annual Eco Expo was held at the Vet's Hall in San Luis Obispo last month, with over 20 exhibitors. There was an enormous amount of useful information available, but one of my favorite booths was the one for My Fun Ride, a new concept for SLO. It's a cross between renting a car and borrowing one from your neighbor . . . a very economical way of being able to use an auto when needed without incurring the heavy expenses of ownership. The site calls this concept "car sharing," which is an accurate description.

You buy a membership for $30 a year (plus a one-time $25 registration charge) and then you may rent a car for $6 an hour and 40 cents a mile (slightly more on the weekends). You pick up your car from a "pod" (there are three locations in SLO)...no waiting in line and no dealing with paperwork. You swipe your membership card to gain entry to the vehicle, open the glove compartment to find the key, and off you go!

All vehicles use alternative fuels in one way or another, including hybrid electric, flex fuel, biodiesel, natural gas, and NEV. While the website states that the vehicles will include trucks, as far as I can tell they don't offer them yet. Who hasn't needed a pickup for an afternoon, and didn't want to pay the price at the car rental place (and didn't know a friend who could loan theirs out)?

Check this out! It sounds like a wonderful way to save money and hassle, and do good by the environment at the same time.

http://www.myfunride.com/

CALIFORNIA VALLEY

Hugging San Luis Obispo's eastern boundary with Kern County, California Valley is a remote high-desert outpost where few visit and even fewer live. The original Spanish land grant was parceled out in 1960 into over 7,200 2.5 acre sections by optimistic real estate developers. According to their own advertising fliers, these 1960 developers believed that the California State Water Project might bring water to the area. After a more northerly route for the project was selected, many buyers lost heart, many properties were abandoned, and the original developers went bankrupt.

Over the years, people have purchased California Valley land in order to get away from it all, to hunt or explore the Carrizo Plains, and also to farm or ranch. Today, about 500 people call the valley home, but that may be changing soon.

In 2001, President Bill Clinton signed the legislation that created the Carrizo Plain National Monument, a 250,000 acre preserve just to the south and east of California Valley dedicated to the high desert ecosystem, Native American pictographs, and other cultural artifacts. The Goodwin Education Center and two campgrounds are within the monument's boundaries, as is Soda Lake, a usually-dry lake that in winter attracts thousands of Sandhill Cranes. Pronghorn antelope and other wildlife abounds. Visitors can also see graphic evidence of the activity of the San Andreas Fault, one of California's largest and most active earthquake faults.

Over the years, the Carrizo Plain has been home to several solar power plants, none of which are still active. Economics forced their closure; petroleum never reached the high price necessary to make the solar plants profit-making enterprises. However, as gas prices have risen and the cost of solar technology has dropped, it has become a feasible source of power.

Currently, the California Solar Ranch is scheduled to begin producing in late 2010, employing about 700 persons while it is built and about 300 on a permanent basis. These activities have already increased interest in California Valley as a place to visit and live, and as the solar plant begins operations, more people are expected to move to the area.

Water is a major concern in the area, as the water from Soda Lake, when available, is very alkaline and unsuitable to drink. Residents depend on wells; the "good water" area is the land closest to the mountain chain called the Caliente Range (and farthest from Soda Lake). Well water in this area is of good quality and quantity.

California Valley has true seasons. Summer is typically hot, with temperatures frequently getting into the 100°+ range, but cooling off at night. Winter finds occasional snowfalls and subfreezing temperatures. But the most beautiful times of the year are spring, when a magnificent display of wildflowers unfolds for several weeks; and fall, when the weather is picture-perfect.

Property is still mostly in 2.5 acre lots, and is accessible via mostly unpaved but graded and maintained named roads. Electricity and telephone service is available, and cell service is also available (depending on the carrier). Some residents raise horses, goats, sheep, chickens, etc. Others maintain orchards, greenhouses, and row crops. Still others simply enjoy the solitude, clear skies, and good air. Parcels for sale start around $6,000 up to $40,000 or more, depending on the size of the property, improvements included, and water accessibility. Homes sell from $85,000 up.

There is an elementary school in the area (high school students are bused to Atascadero for classes), as well as postal drop box/lock box, a community services district, and a library open one day a week.

I currently have one listing in CA Valley: a 2.5 acre parcel in the "good water" area, reduced to $30,000. Utilities are in and accessible on three sides (must be brought to lot), and a nearby home is selling for over $300,000. Bring your camper, or your tent, and enjoy stargazing, hiking, visiting the national monument, etc.

Wildflower season in CA Valley (foreground)

CA Valley lot for sale