This report is a look back at 2022 and a projection of what we may see in 2023 North San Luis Obispo Country Real Estate.

North San Luis Obispo single family real estate sales dropped almost 50% in the 4th quarter of 2022 as compared to the 4th quarter of 2021. New listings dropped 32% over the sale time period.  The median sales price increased 3% to $682,500 during the comparative periods.  For the first time in history mortgage rates doubled during the calendar year.  New construction is picking but will not materially impact the supply deficit in 2023.  Interest rates will be in the 5%-7% range.  Going into the 1st quarter of 2023 we will see low inventory, moderate demand and stable pricing.  We do not see any material erosion in values. 

Paso Robles is a dynamic force in the California wine industry.  Major American and international companies are taking large long-term positions in local vineyards and wineries. The pandemic hastened the growth of the to consumer (DTC) business model for wineries.  Agriculture tourism has exploded on the Central Coast which fuels our hospitality industry.  Vineyard and winery sales have been steady throughout the last year with strong pricing.  Fruit seems to be in a balanced economic position despite last year's short crop.  Vineyard replanting costs and farming costs have significantly increased. 

Commercial real estate in North San Luis Obispo County will hold its own in the face of higher interest rates and economic uncertainties.  Multi-family product will continue to be in strong demand for investors.  Warehouse and industrial produce should be stable.  Retail is recovering and office product will still be tepid from a demand standpoint.  

Our local city government has done a good job managing the chaos over the past few years.  We have out local issues, but our leaders have treated one another with respect regardless of ideology.  Real estate values reflect the success or failure of government policies. 

What's in store for 2023?  Supply and demand will rule the day.  During the past 2 years qualify of life overtook affordability as Buyers' main reason for relocating.  California urban areas continue to deteriorate in living conditions.  Urban refugees view the Central Coast as higher in quality with pricing well below urban values.  The Central Coast will be the strongest market in California. 

Supply will be sparse going into the first part of the year. new construction is erratic.  Homeowners with ultra-low mortgage rates are seemingly locked into their existing homes despite generous equity cushions.  Structural life events such as death, divorce, job relocation, work from home and retirement will provide supply, decent demand, and strong pricing.  It's a remarkable time to be a Seller in North San Luis Obispo County. 

Not all real estate is created equal.  Many Regions in the country may see double digit percent value drops.  Covid and cheap money created booming markets that will fall back to the norm.  Media headlines, meant to terrify nor clarify, will showcase dramatic market conditions.  We do not see material increases or decreases in values moving forward into 2023. 

It's good to remember that all real estate is local, and our city leadership is more important than who is in the White House.  The economy will showcase our resiliency in North San Luis Obispo County.  

Call on our tam for your real estate needs in 2023. As much as we would like to say we had the time to draft the details located within this blog post, it was prepared by Pete Dakin and Fred Bruen, both with our brokerage RE/MAX Parkside Real Estate. 

Are Adjustable-Rate Mortgages Making a Comeback? 

Home buyers have had a rough time lately.  First, the frenzied housing market stymied so many offers and caused frustration due to lake of inventory.  Now that the pace and prices are starting to drop, interest rates have ticked up to alarming levels.  While some buyers are postponing their purchase, those still in the market are starting to consider more creative financing, including an ARM (Adjustable-Rate Mortgage).  

What is an ARM?

Unlike a 30-year fixed mortgage, as the name suggest, the interest rate of an ARM can change over the course of the loan.  The interest rate is based on an index, such as the one year T-Bill.  Additionally, the timing of adjustment is fixed in the loan documents, so the borrower knows hot to plan for the changes.  For example, a 5/1 ARM means that the initial interest rate is fixed for the first five years and then can adjust once a year for the remaining 25.  Likewise, a 7/1 ARM has a fixed period of 7 years.  There are also built-in protections to ensure that the adjustments are reasonable.  These are limits to how high and adjustments (or reductions) can be assessed at each point and an overall cap on the interest rate. 

The advantage of an ARM is to allow more buying power to buyers by starting with a lower interest rate than that available in a 30-year fixed loan.  This can be especially valuable for buyers who do not intend to keep the home for 30 years; they can tailor the adjustments based on their planned time to own the home. 

The housing market is shifting.  Homebuyers may not have the same challenges as last year, but today's market presents new issues.  One tool is an Adjustable-Rate Mortgage, and with the higher interest rates, this mortgage product may be making a comeback.  

Certainly, we are not advising prospective or currently clients to obtain any type of loan.  However, you can work with your mortgage professional to choose the loan product that is right for your needs.  If you do not have one, please reach out to us and we can connect you with a reputable local lender who can help you navigate the changing lending market.  The best place to start any home (or land) buying journey is to talk to a lender and see how much purchasing power you have within your budget.  This is powerful information and, when making offers, it puts you in a stronger position and increases your chances of getting the house of your chose.  

If you have any questions, or would like referrals for local professionals, please don't hesitate to reach out to one of our agents.  We do not get referral fees, but we do like connecting great companies with good clients.  

Happy Holidays! 

Overall Market Update- 5 Realities for Sellers Now

Overall the past few years, most of the US has been in a strong seller's market.  Historically, low interest rates coupled with rising incomes resulted in buyers who were ready and able to buy a home.  It was a crazy time when sellers needed to do little more than put a sign in the yard to attract multiple offers. 

However, the post-COVID housing market is quite different.  The uncertainty in the economy has slowed the pace and rising interest rates have caused buyers to reconsider their purchase, and the amount they are willing to pay.  As a result, sellers must go back to the tried-and-true methods of selling a home, debunking the myths of the past few years. 

5 "New" Realities for Sellers

1. Price the Home Realistically- Now sellers must be more careful and price the home realistically to avoid losing the precious early days of a listing when buyer's interest is high. 

2. Make Repairs- Buyers have more choices now and they will be more careful about buying a home that needs a lot of work.  Sellers should consider completing pre-inspections to reduce surprises for everyone during the escrow period. 

3. Consider making concessions- Buyers often ask for reasonable concessions; sellers should weigh the offer before rejecting.  In recent months we have seen more sellers offer a credit for a buyer to "buy down' their interest rate.  This concept helps reduce the monthly payment for buyers and can lead to a higher net to the seller. 

4. Staging is Back- Make sure the home is show-ready and sellers may consider some simple staging to make the home more appealing to buyers. 

5. Be Prepared to Wait- The pace has slowed.  In a "normal" market, more home take 30-45 days to enter escrow. 

Finally, sellers should pay attention to their local market and determine the right time to list. Balance has returned to the housing market.  Sellers and buyers must adjust their thinking back to the "old" concepts to be successful. 

2022 is here, time for resolutions!  I don't know about you but one resolution I have had on my list for years has been to organize and declutter my home.  At first I thought, "if I just had more time at home I can get this done".  The pandemic has proven that statement to be false.  If this sounds familiar, below are a few tips and tricks that may help you achieve this resolution while managing your busy schedule.  

Schedule Clean-Up Time Before Bed

Set a timer for 10 minutes every evening for the entire family to help clean up the house.  Run the dishwasher, wipe down the countertops, and put away any clothes lying on the floor.  This is also a great time to have your kids help by cleaning up their toys, books, or any crafts they used during the day.  Everyone will start each morning off with a clean living space and play area.  It'll make it much more manageable to maintain throughout the day, and when it comes time to tidy up in the evening, the mess won't be so overwhelming. 

Clean Out the Junk Drawer

There is always at least one drawer or cupboard in every household that becomes the collecting place for items without homes. Take some time to clean it out and make it into a manageable space again.  Make it easier to identify where odds and ends go, to help prevent the drawer or cupboard from getting cluttered again. 

Combine Similar Items

Use any containers you already have at home, or order a few online to get organized.  Totes. boxes, or baskets can help contain items and make them easier to find.  Start with your kitchen and craft area by combining similar items together- for example, cereal, pasta, rice, crayons, beads, etc.  This makes it easy to take inventory of everything you have by keeping the same types of items together. 

Label Your Containers

Once you've taken the time to consolidate and put all the like items together, make sure to label each container with it's contents.  It will make it much easier to find what you're looking for, especially when you can't see inside the boxes or jars that you're using for storage. 

By allocating a small amount of time each day to clean and organize your home, it'll leave your space feeling much cleaner, and you'll better enjoy your surroundings.  Just set a timer and get as much done as you can in that time.  In addition, it will be much easier to find everything that you need on those busy days!! 

How have we already completed the first month of 2021? So much has happened and our team has been so busy that the month just flew by.  For those of you who are still struggling through issues related to the pandemic, our hearts go out to you.  So many families have lost so much, we can only hope that brighter times are on the horizon. 

If you are on social media, check out our Facebook and Instagram pages.  We do our best to post current information on a regular basis.  Just type in @thewinecountryteam and look for our logo.  We will begin posting and tagging local business soon so if you use social media and would like a shout out, message your favorite team member and we'll make it happen! 

On to a quick market update.  As most of you know, the homes available for purchase is very limited at the moment.  Hopefully, with spring right around the corner, more homes will hit the market.  2020 saw more real estate transactions than we could have imagined, and we could have sold more if more properties were available!!  So far 2021 has been similar. Don't take our word for it! According to Fred Bruen- AKA The RE/MAX Parkside Statistician- as of January 26th the median sales price is up 6% and inventory is down 53.7%!  

Currently we have multiple buyers looking for estate properties in Northern San Luis Obispo County and Southern Monterey County.  These are well qualified buyers ready to go. 

We also have multiple buyers looking for a recreational property, vacation home or a remote location to move out of town.  

If you have been thinking about downsizing, upgrading or moving out of the area, let's talk. We are always happy to help you make the best decision for your unique situation.  

A few notable new properties for sale- 

Renegade Ranch, King City- 3,400+/- acres game fenced locate in Southern Monterey County with approximately 50 acres planted in Cabernet Sauvignon, two homes, a pond and water system to feed both the vineyard and animals on the land (cattle, bison and more!) $6,500,000

75+/- Acres on Las Tablas Willow Creek Road- Willow Creek AVA, beautifly gently rolling land with a stunning build site, seasonal creek, oaks, pine trees, power on the property and a recycled based road to the top of the hill.  Two wells, ready for someone to fulfil their dream.  $2,800,000

2985 White Oak Road, Templeton- unique 2,000+/-sf home on just under 17 private acres with a shop building that is just under 3,000sf.  Conveniently located, just minutes to highway 101 or (more importantly) Trader Joes and Pier 46! $1,125,000

Welcome to the new blog for The Wine Country Team of RE/MAX Parkside Real Estate! We are happy to announce that Wade Taylor, Vicki Silva, Mitch Culver, Alicia DiGrazia and Jamie Kelton have joined forces to become the most knowledgeable and most experienced real estate team in SLO county. We look forward to working with you in the upcoming New Year!

Now on to the important stuff.... Take a look at this new listing! This charming, newer home (2014) is just a short stroll from the Templeton Farmer's market and downtown park. Conveniently located near three of Templeton's highly acclaimed schools. This well maintained 4 bedroom, 2.5 bath home boasts many tasteful features and upgrades. Full virtual tour and professional photos will accompany this brand new listing when it hits the market and MLS tomorrow morning! Dont miss out, call or email if you have any questions or interest. This one wont last! 675 Lincoln Ave, Templeton. Priced at $699,000.  

Hopefully this first blog post finds you and your family healthy and ready to leave 2020 behind.  It is time to move forward into 2021.  

Home buying demand has been fierce in North SLO County since June of 2020.  Our county and our community are experiencing a generational shift in real estate demand and activity.  A seemingly perfect storm of low interest rates, remove workplace options, deteriorating urban environments and the high cost of city living have created an exodus of urban refugees seeking a higher quality of life and lower cost of housing. North County is in the right place at the right time to service this raging buyer demand. 

Our 2020 year started out strong but hit a speed bump with COVID in early spring.  Once our markets opened backup we have seen strong demand and supply limitations due to seller reluctance to list property with the COVID cloud overhead.  The median price will finish the year at $575,000 versus $505,000 in 2019.  That 15% increase, year to year, is similar to what many communities experienced nationwide. 

There were 340 available homes for purchase a year ago versus 194 available today.  It's the strongest seller's market in decades.  The actual numbers of sold homes rose 7% year to year.  More homes would sell if more homes were available. 

Ranch properties and vineyards have enjoyed an increase in demand but supply still is ample in these categories.  Grape prices rebounded a bit as smoke taint from the North Coast caused the bulk market overhang to be depleted.  There is good value in these larger offerings for buyers. 

In the commercial property arena, multi-family and renal homes are still in strong demand.  Downtown retail and hospitality properties are dormant for health reasons.  The vacation rental market is still strong even with the serial shutdowns from Sacramento. 

We want to give credit to our city leaders here in Paso Robles.  These people have managed outside elements of chaos and COVID challenges with calm and clarity.  We have something good in North County and there will always be those looking to tear down our city.  Our police are awesome.  Safety is the number one quality of life issue and we have safety. 

Later into December, our clients are busy so we are busy.  Our market will soften when values in the urban markets start to drop.  We are an inbound market and out values lag a bit behind San Francisco and Los Angeles.  The urban values have not started to decline but rents have started to decline in these areas of urban decay. 

North County is a citizen governed community that will face many challenges in the coming years.  Our wine industry and the hospitality industry is world class.  Politically and financially our community has stood tall as many have failed.  We have natural resources that are rich and accessible.  We will see strong buyer demand in the first quarter.  Call us today if you want to get your property sold, this is an optimum market moment for sellers.