Top 5 Real Estate Mistakes to Avoid in San Luis Obispo County for 2010
1. "Over Pricing Your Property:" Always be sure to look at my local area statistics so you can stay on top of what's happening in your area of the Central Coast.
Click to View my "Local SLO County Home Sales Statistics."
2. "Not Looking for Good Deals:" I have access to virtually all bank-owned homes (REOs) on the Central Coast. Call me and I'll put an REO specific property search together for you!
Or, Click to Search the Central Coast MLS for Homes and Land.
3. "Purchasing a Cheap Foreclosure:" While foreclosures can offer homebuyers big discounts, these homes sometimes come with a great deal of deferred maintenance in the form of repairs requiring thousands to correct.
4. "Not Using the Government's Home-buying Tax Credits:" Specifically, $6,500 for "move-up" buyers and $8,000 for first-time buyers.
5. "Avoid Short Sales:" Don't get involved with these unless there's only one recorded trust deed. If price really matters, concentrate on REOs (bank-owned homes); this is where the real bargains are in today's market.
Click to View my Article: "REOs vs. Short Sales, which is best?
Click for a Free/No Obligation Market Analysis of your SLO County home
Click to Visit My Website at SLOhomes4sale.com
Paul Pickering
Broker Associate, Bay Osos Brokers
CA DRE License #0997005
SEARCH ENGINE KEYWORDS
SLO COUNTY HOME PRICES
SLO COUNTY HOME VALUES
SLO COUNTY HOMES FOR SALE
SLO COUNTY HOME SEARCH
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SLO COUNTY REAL ESTATE FOR SALE
SLO COUNTY REALTORS
Posted at 02:52PM Jan 15, 2010 by Paul Pickering in Real Estate | Comments[0]
SLO County Home Sales: 2009 vs. 2008
2009 was a very challenging one for the Central Coast of California--especially as it applies to the number of foreclosures that dominated the market place.
In that regard, the total number of homes sold for specific areas of San Luis Obispo County for 2009 was 2,711.* Last year's total this time was 2,689; in comparison, market volume was up by one percent over 2008 but prices were down from the previous year by approximately 20 percent: the average price of a home for 2009 was $479,000; while ‘08's average price was $608,000.
The average number of days homes spent on the market for 2009 was 99. 2008's average was 110. The average list-to-sales-price ratio for 2009 was 95 percent. 2008's average-list-to-sale-price ratio was 94 percent. The average inventory of unsold homes for 2009 was 6.57 months. 2008's average was 7.37.
*Click to View my 2009 Year-end Home Sales Totals for SLO County
Click for a Free/No Obligation Market Analysis of your SLO County home
Click to Visit My Website at SLOhomes4sale.com
"Mr. Statistics" Paul Pickering
Broker Associate, Bay Osos Brokers
CA DRE License #0997005
SEARCH ENGINE KEYWORDS
SLO COUNTY HOME PRICES
SLO COUNTY HOME VALUES
SLO COUNTY HOMES FOR SALE
SLO COUNTY HOME SEARCH
SLO COUNTY HOMES
SLO COUNTY ANALYSIS
SLO COUNTY CONDOS FOR SALE
SLO COUNTY REAL ESTATE FOR SALE
SLO COUNTY REALTORS
Posted at 02:50PM Jan 15, 2010 by Paul Pickering in Real Estate | Comments[0]
San Luis Obispo County Home Prices and Values
Interested in finding out what your San Luis Obispo County home is currently worth? If so,
click for a Free/No Obligation Market Analysis of your San Luis Obispo home
In the meantime, here are the latest sales numbers, averages prices, and number of days homes are currently spending on the market in your Central Coast Area!
|
Area |
Total Sales |
Average Sales Price |
Market Time (days) |
|
Cambria |
93 |
729,000 |
128 |
|
Cayucos |
26 |
773,000 |
114 |
|
Morro Bay |
96 |
574,000 |
137 |
|
Los Osos |
113 |
436,000 |
97 |
|
San Luis Obispo |
194 |
618,000 |
90 |
|
Pismo Beach |
62 |
815,000 |
117 |
|
Arroyo Grande |
200 |
554,000 |
102 |
|
Grover Beach |
83 |
347,000 |
95 |
|
Oceano |
29 |
307,000 |
97 |
|
Nipomo |
182 |
424,000 |
94 |
|
Atascadero |
246 |
404,000 |
91 |
|
Paso Robles* |
314 |
323,000 |
94 |
|
Templeton |
86 |
689,000 |
136 |
All stats are for single family homes. *Stats for Paso Robles include those within city limits only.All stats are derived from the Central Coast Multiple Listing Service and are subject to change & copyright law. Copyright 2009
Click to Visit My Website at SLOhomes4sale.com
"Mr. Statistics" Paul Pickering
Broker Associate, Bay Osos Brokers
CA DRE License #0997005
SEARCH ENGINE KEYWORDS
SAN LUIS OBISPO / SLO COUNTY HOME PRICES
SAN LUIS OBISPO COUNTY HOME VALUES
SAN LUIS OBISPO COUNTY HOMES FOR SALE
SAN LUIS OBISPO COUNTY HOME SEARCH
SAN LUIS OBISPO COUNTY HOMES
SAN LUIS OBISPO COUNTY MARKET ANALYSIS
SAN LUIS OBISPO COUNTY CONDOS FOR SALE
SAN LUIS OBISPO COUNTY REAL ESTATE FOR SALE
SAN LUIS OBISPO COUNTY REALTORS
Posted at 01:52PM Dec 03, 2009 by Paul Pickering in Real Estate | Comments[0]
San Luis Obispo County Short Sale Homes: "Just Say, NO!"
If you are looking at a “short sale” to purchase, but the seller (or borrower) has a 1st trust deed and a 2nd, the likelihood of both lenders working out a solution is slim to none—particularly if a home’s value has continued to diminish during the short sale process (typically 6 months or longer).
So you know, a successful short sale on a home with both a 1st and 2nd trust deed is entirely contingent on the 2nd trust deed recouping a minimum of 10 percent on the current loan’s balance. Furthermore, the actual close-of-escrow-ratio of homes being sold through a short sale process is less than one percent.
If you are one of the many who still believe that short sales are where the “deals” are, consider the following: let’s say there’s a home you especially like and is being offered as a short sale . . . it has a 1st TD loan balance of $325K and a 2nd TD loan balance of $100K, its current market value is $350K (via recent appraisal), and the 2nd TD note holder, in this case, is going to need to recoup a minimum of $10,000. Even if the owner/borrower is presented with a full-price offer from a qualified buyer at $350K, you’ll see from the numbers (while adding a minimum estimate of $20,000 in closing costs) that the 2nd TD is not going to recoup their “minimum 10 percent.”
If the 2nd TD loan holder doesn’t get what they require to make the short sale happen, they will not grant the owner/borrower’s short sale request via the sale of the property. If the 2nd TD loan holder refuses to grant the short sale, the 1st TD loan holder will then move to foreclose on the home, after which the home will come back onto the market as an REO (a.k.a real estate or bank-owned).
Because banks take so long to make short sale-related decisions, and because values continue to decline in some areas, by the time a bank agrees to do a short sale, the borrower’s home may be worth less than a buyer’s previously-submitted offer reflects; thereby furthering to diminish any hopes of a successful short sale. Furthermore, if the value of the home has gone down, then the possibility of the buyer getting their loan is not likely either.
Because banks aren’t in the business of being property owners, they are going to place the home back onto the market (typically below current market value) where it will be sold to the highest bidder. As you can imagine, this can actually create the same kind of buying frenzy we’ve seen in the not-to-distant past.
My suggestion to anyone wanting to either buy or sell via the short sale process is to do your homework. With a call quick, I can help make this process even easier by verifying the number of loans on a property, the loan amounts, and most importantly, if and when a “Notice of Default” has been issued.
This is important because if an NOD has been issued, it will provide an approximate “opportunity time line” as it applies to when the home will be foreclosed upon. It will also keep you from wasting your time putting offers on homes offered as “short sale opportunities” —especially with the knowledge of junior lean holders’ 10 percent loan balance minimums and when a home is actually scheduled for foreclosure.
So you know, when an NOD is filed on a property, the owner has 90 days to bring the loan current, including any back taxes. If after 90 days the borrower is still in arrears, they are given an additional 20 days to pay the loan in full. After that, the home is foreclosed upon. If an NOD has yet to filed on a property, and with the time it’s taking to get banks to issue them, a prospective buyer could wait up to a full year or longer for a bank’s short sale decision.
My advice: “don’t get involved in a short sale purchase unless there’s only one mortgage lender with a 1st trust deed recorded on the property. If price really matters, concentrate on REOs (bank-owned homes); this is where the real bargains are in today’s market.
Posted at 01:47PM Dec 03, 2009 by Paul Pickering in Real Estate | Comments[0]
San Luis Obispo Rental Property Buying Guide
In the recent past, it’s made sense to buy rentals as it applied to both income and especially appreciation. Since the recent world-wide financial “realignment,” the term investment property has been redefined. With the availability of rental property in abundance, rents are down; therefore, unless you pay cash for a rental, or make a very sizeable down payment, it’s very likely that the rent will not equal the monthly payment, insurance, taxes, (and) management expense.
If this is the case, you are losing money.
If you are looking to write-off a sizable portion of your annual personal income, this may actually be a good opportunity; before the purchase of a “write off” rental, I highly recommend having your CPA help you analyze your options—especially as they may apply to a rental’s annual depreciation and property tax basis recapture—that way you can examine all of the necessary “tax” pieces of the investment property puzzle before moving forward with a purchase. If you are in need of an experienced accountant, I know a couple of great CPAs (also clients) who would be happy to help you.
If you are making what might be considered a “tidy sum” above and beyond your expenses, your cash on cash/return on investment is typically going to be between two to three percent annually. Not bad, but not great either, especially considering the headaches typically associated with a rental’s tenants, trash, toilets, and taxes. If you need to sell the rental (for any reason), you’ll also need to factor in selling costs which could conceivable eliminate any gain you may have had via the income the rental produced.
If you are looking for a sound real estate investment these days, you should naturally consider a rental’s income opportunities, but more importantly, you should put a greater emphasis on long term appreciation as it applies to the actual return of your investment. This is why it’s vitally important to consider the quality of a property as it applies to its type (single family vs. condo) and most importantly, its location (the closer to the ocean the better—especially here on the Central Coast).
In this regard, I’m advocating clients have a conservative “holding” plan of between five to ten years as it applies to a rental/investment property purchase. This time period will conservatively allow an investor to progress from a negative cash flow to a positive one with the added advantage of increased appreciation as the economy eventually recovers. After all, appreciation is where the real money is in real estate investing.
Lastly, beware of anyone willing to put you into an investment property without recommending that you consult with your CPA first.
Posted at 01:29PM Aug 28, 2009 by Paul Pickering in Real Estate | Comments[0]
San Luis Obispo home sales surge in July!
Continued from 1st blog entry for August . . . . If you are going to put an offer on an REO, you’d better make your first offer attempt your best, for as banks are not motivated to engage in counter offers and as such, usually take the best 1st offer presented to them. As far as prices remaining low, my guess is that this trend will continue until most REOs (bank owned) and short sale properties have been cleared from the market place. Once the REO opportunities disappear, so will the great deals.
Current Market Numbers The total number of homes sold for all areas (covered on my statistics page) thus far for 2009 is 986; last year’s total this time was 1035; so for last month, we are down volume-wise by five percent when comparing this year to last but up by four percent when comparing the last two 12-month periods. The current average price of a home is $486,000 (see stats page for specific area averages). 2008’s average price was $608,000.
Additionally, the average number of days that homes are currently spending on the market is 105. 2008’s average was 110. Remember, this “Days on Market” figure is determined by the time a home goes onto the MLS and when it is reported as having been placed into escrow and noted as a “pending sale.” The current average list-to-sales-price ratio is just above 94.74 percent. 2008’s average-list-to-sale-price ratio was also 94 percent. Lastly, the current inventory of unsold homes is 7.77 months. 2008’s average was 7.37.
Stay tuned to my next blog entry for more San Luis area home sale statictics . . . .
Posted at 01:28PM Aug 19, 2009 by Paul Pickering in Real Estate | Comments[0]
SLO Area Home Sales Surge in July . . .
As I have been updating the sales number for July, I have noticed there has been a marked increase in the number of sales for virtually every area of the
- Your best deal is a bank-owned property (REO) or an owner who may be motivated via competing bank-owned homes.
- Not all SLO county areas are alike as it applies to REOs; specifically, those found on the coast do not last long and typically generate multiple offers; REOs found in both the north and south county stick around a while longer but are ultimately sold within about a 30 to 60-day period.
Stay tuned to next weeks blog entry for more Central Coast Home Sales Stats and Info!
Posted at 02:00PM Aug 04, 2009 by Paul Pickering in Real Estate | Comments[0]
Prices continue to create buying opportunities!
Continued from 2nd blog entry for July,
Current Year-to-Date Statistics by Area
(or, everywhere I have clients; or, virtually every area of
|
Area |
Total Sales |
Average Sales Price |
Market Time (days) |
|
|
35 |
799,000 |
141 |
|
Cayucos |
6 |
622,000 |
108 |
|
|
31 |
427,000 |
150 |
|
Los Osos |
29 |
427,000 |
93 |
|
|
62 |
650,000 |
96 |
|
|
26 |
936,000 |
132 |
|
Arroyo Grande |
74 |
529,000 |
123 |
|
|
30 |
325,000 |
110 |
|
Oceano |
14 |
292,000 |
73 |
|
Nipomo |
73 |
443,000 |
92 |
|
|
92 |
368,000 |
81 |
|
Paso Robles* |
114 |
321,000 |
102 |
|
Templeton |
26 |
622,000 |
127 |
All stats are for single family homes. *Stats for Paso Robles include those within city limits only. All stats are derived from the Central Coast Multiple Listing Service and are subject to change & copyright law. copyright 2009
Stay tuned for more Central Coast Home Stats in my next blog entry!
Posted at 12:58PM Jul 20, 2009 by Paul Pickering in Real Estate | Comments[0]
Prices continue to create buying opportunities . . .
2nd blog entry for July, 2009 . . . Current Market Numbers The total number of homes sold for all areas (covered on my statistics page) thus far for 2009 is 819; last year’s total this time was 884; so for last month, we are down volume-wise by about seven percent when comparing this year to last but up by two percent when comparing the last two 12-month periods. The current average price of a home is $485,000 (see stats page for specific area averages). 2008’s average price was $608,000. Additionally, the average number of days that homes are currently spending on the market is 103. 2008’s average was 110. Remember, this “Days on Market” figure is determined by the time a home goes onto the MLS and when it is reported as having been placed into escrow and noted as a “pending sale.” The current average list-to-sales-price ratio is just above 94 percent. 2008’s average-list-to-sale-price ratio was also 94 percent. Lastly, the current inventory of unsold homes is 7.54 months. 2008’s average was 7.37. Stay tuned for next week’s blog entry for more local area statistics!
Posted at 12:06PM Jul 15, 2009 by Paul Pickering in Real Estate | Comments[0]
Prices Continue to Create Buying Opportunities!
3rd Quarter 2009 update . . .
If you’ve been looking to buy your own slice of Central Coast Paradise, rates and prices are continuing to cooperate. This of course depends on what part of the county you are most interested in. As I’ve been saying for a while now, the north and south counties of
As far as prices remaining low, again, I equate a lot of what’s happening with the slow/gradual, absorption of distressed properties which, currently seem to be skewing lower the entire county’s average home price number. My guess is that this trend will continue until most REOs (bank owned) and short sale properties have been cleared from the market place. Once the REO opportunities disappear, so will the great deals.
Stay tuned to my next blog entry for more information on actual home sales numbers for the
Posted at 09:37AM Jul 07, 2009 by Paul Pickering in Real Estate | Comments[0]
3rd Quarter '09: Sales Volume Stable; Price still Down
June 2009 Blog Entry, "Sale Volume Stable; Prices still Down[Read More]
Posted at 10:47AM May 30, 2009 by Paul Pickering in Real Estate | Comments[0]
Central Coast 2nd Half 2009: what's in store?
2nd Blog entry for May, 2009 . . .
As I mentioned in my last entry, here are the current numbers (as of 5/1/09) for all of the regions of the Central Coast that I maintain clients.
Current Year-to-Date Statistics by Area
(or, everywhere I have clients; or, virtually every area of SLO County)
|
Area |
Total Sales |
Average Sales Price |
Market Time (days) |
|
Cambria |
28 |
878,000 |
169 |
|
Cayucos |
5 |
623,000 |
122 |
|
Morro Bay |
26 |
430,000 |
158 |
|
Los Osos |
21 |
406,000 |
70 |
|
San Luis Obispo |
46 |
650,000 |
107 |
|
Pismo Beach |
20 |
947,000 |
129 |
|
Arroyo Grande |
59 |
528,000 |
126 |
|
Grover Beach |
22 |
339,000 |
114 |
|
Oceano |
8 |
289,000 |
91 |
|
Nipomo |
50 |
462,000 |
94 |
|
Atascadero |
67 |
355,000 |
87 |
|
Paso Robles* |
88 |
319,000 |
96 |
|
Templeton |
19 |
613,000 |
153 |
All stats are for single family homes. *Stats for Paso Robles include those within city limits only.
All stats are derived from the Central Coast Multiple Listing Service and are subject to change & copyright law.
Posted at 10:30AM May 14, 2009 by Paul Pickering in Real Estate | Comments[0]
2nd Half 2009: More "Doom" or More "Opportunity?"
In spite stabilizing sales volume numbers as reported last month,” REOs (bank foreclosures) and short sales continue to put downward pressure on local home prices.
I equate a lot of what’s happening with this on the slow, yet gradual, absorption of distressed properties (including short sales), which, in my opinion, are skewing lower the entire county’s average home price number. My guess is that this trend will continue until most, if not all, of these “toxic properties” have been cleared from the market place. How much longer, you may ask? . . .
There is speculation that there will be “another huge wave of foreclosures” caused by the default of adjustable rate “liar” loans that are scheduled to reset to higher interest rates in the next several months. However, if the current rate of distressed property absorption is any indication, if this “new wave” actually materializes, it’s likely that these homes too will be smartly snatched up by a 2nd battalion of ready, willing and able buyers. The reason for this is that with all of the uncertainty these days, first time buyers and investors are looking for something “tangible” with which to invest. Real Estate addresses that “tangible” and may continue to do so for the foreseeable future.
That said, and as I’ve been saying for a while now, rates are about as low as they will most likely get. If you are looking to buy you couldn’t have picked a better time-- especially with prices at an all-time low.
If you are thinking of selling, these same great rates still play a big role in getting your home sold. If you are thinking of doing either, call me so that I help you
find the perfect house or get your home listed before rates go up; and, believe me, they will—especially with all of the new inflation-causing “stimulus money” floating around out there!
Current Market Numbers The total number of homes sold for all areas (covered on my statistics page) thus far for 2009 is 459; last year’s total this time was 524; so for last month, we are down volume-wise, year-to-date, but down by only one percent when comparing the last two 12-month periods. The current average price of a home is $487,000 (see stats page). 2008’s average price was $564,000.
Additionally, the average number of days that homes are currently spending on the market is 111. 2008’s average was 110. Remember, this “Days on Market” figure is determined by the time a home goes onto the MLS and when it is reported as having been placed into escrow and noted as a “pending sale.” The current average list-to-sales-price ratio is just under 94 percent. 2008’s average-list-to-sale-price ratio was also 94 percent. Lastly, the current inventory of unsold homes is 7.60 months. 2008’s average was 7.37.
Stay tuned to my next blog entry for more statistics from the beautiful Central California Coast!
Copyright 2009
Posted at 01:07PM Apr 30, 2009 by Paul Pickering in Real Estate | Comments[0]
Is Our Market "Stabilizing?"
April "Stabilizing?" 1st entry[Read More]
Posted at 10:51AM Apr 02, 2009 by Paul Pickering in Real Estate | Comments[0]
Paradise now affordable, 3rd entry
March 3rd entry on Stats[Read More]
Posted at 04:09PM Mar 20, 2009 by Paul Pickering in Real Estate | Comments[0]
