Real Estate Information Archive


Displaying blog entries 1-3 of 3

Housing Challenges for an Aging Population

by CAR

North County Real Estate 2016 Review

by Pete Dakin

This real estate report looks back at 2016 North County and projects market activity into the first part of 2017. While the past certainly does not equal the future, we try to provide insight to help our valued Clients make good decisions regarding real estate.

Residential home sales stayed on par with about 1600 unit sales for 2016 which is similar in number to 2015. The average price of in-town, single family homes reached $396,000 reflecting a 6% increase over 2015. Pending sales going into the new year are higher than 2015 which reflects a stronger 4th quarter than we usually experience in sales. Inventory of single family homes, for sale, is up 30% which reverses a trend over the past few years. 

Going forward, it appears that home sale price increases will stay modest in the 5% range or less. Rising interest rates will impact sales in a modest fashion as well. Sellers are already starting to reduce asking prices if their property is sitting. These price reductions are happening state-wide. Sellers always get ahead of the market in asking prices. These reductions do not mean a drop in value, but reflect a lower price increase in average pricing. 

For the first time in years, lots and land sales increased 30% year to year. There is more building and asking prices have dropped to a level where buyers see value and opportunity. We think that pricing for land will be strong in 2017, especially westside land. A note of caution still exists for land parcels within the ordinance overlay. 

High-end existing built homes, vineyards, and wineries all experienced a bump in activity over 2015. Agricultural buyers are going after already planted vineyards. The water restrictions make existing properties more valuable. Million dollar homes are reasonably priced and certainly appear to be good deals when compared to the strong residential prices. More existing wineries will sell in 2017 because building from scratch is a non-starter for many reasons. 

In 2017, we will see the State of California begin the management process of the Paso Robles Basin as well as the other impacted basins in California. The first step of this State implemented process will be raising revenue from basin inhabitants to design a sustainability plan. In addition, we will see some metering of wells in the basin. 

North County tourism is booming. Our wineries are selling wine at a decent clip. Commercial activity continues to move forward at a steady pace. Atascadero has languished behind the commercial pace as compared to Paso Robles. Industrial activity is good based on user demand. Home rents are very strong. 

North County is an inbound destination for tourists and urban refugees looking to relocate on a permanent or part-time basis. We think that high urban prices coupled with baby boomer retirees could create a sustained demand for the North County lifestyle we love so much. A couple visits from San Jose and they live in a two-million dollar home they bought 30 years ago for $200,000. These folks are 60 years old with a million-dollar plus 401K. That aforementioned phenomenon is happening everywhere. Some of these people are leaving the State but we see them walk into our doors at RE/MAX. We are a great value. Maybe better than ever.

RE/MAX National Housing Report - December 2016



December U.S. home sales defied seasonal trends! 







Displaying blog entries 1-3 of 3

Contact Information

Real Team 360
RE/MAX Parkside Real Estate - BRE #01421338
1213 Vine Street
Paso Robles CA 93446
Office: (805) 238-1555