My Life as a Seller

I'm going through what I know to be one of the most stressful experiences we all go through in life, and I've recently figured out that I've made it even more difficult because I've chosen to wear two hats. I'm selling my house and representing myself in the transaction. Not that I don't believe in my own abilities as a professional real estate broker, but since I have not been a seller of a personal residence in at least 15 years or so, I forget about all of the emotion and personal feelings that lie hidden underneath the surface of everything. I work with people all the time going through the same thing and I am able to help them through it with care and understanding. Logically, I knew it was possible to feel the same way. I guess I just thought I could be professional and businesslike when it came to selling my own home and treat it like any other sale. Being a seller in general, especially in this market is difficult, no matter what. Things like having to keep your home in showing condition at all times because buyers seem to want to see it on short notice are especially tough to live through. And, the emotional highs and lows of negotiating offers, are painfully frustrating especially if they do not meet expectations. Well the good news is that by becoming aware of the experience it's easier to take a step back and work through it and I know we all go through them for a reason. I know this one is meant to help me become a stronger person and agent; someone who can relate to my clients in a way that will serve them even better.

Can You See The Rare Opportunity Here?

Our office manager, Michael Byrd has compiled a great visual of median home prices over the past five years on the Scenic Coast, and I am certain he won't mind if I share it with you. Here is what has occurred in San Simeon, Cambria, Cayucos, Morro Bay and Los Osos. The median prices were as follows:
2002 = $379,000; 2003 = $435,000; 2004 = $536,000; 2005 = $619,500: 2006 = $625,000; 2007 = $587,500. In looking at these numbers, especially the large decline in median price for this year, it should be pointed out that even though it fell 6% (it's amazing to see that blue bar going negative for 2007), the median price has increased 55% over the past five years. A big "thank you" to Mike for reminding us all that it's good to look at the bigger picture. Again, if you plan to invest on the coast, consider this, the time to "buy low" may be here and now, and you can still feel confident that appreciation overall has remained strong.

"Word on The Street"

I've been trying anything and everything to sell my listings over the past few months but it seems like there aren't many buyers out there and those that are ready, have a home to sell somewhere else. Since I entered the real estate industry, seven years ago, the market here has gone up exponentially, until now. This is the first year I have seen such a big change. We all knew it was coming...because an adjustment was necessary, but this big of an adjustment was not foreseen by most. And, of course many factors are playing into it, not to mention the lending meltdown. Word on the street, from a few of the the long time brokers in the area is that this market hasn't been around since 1993. Question is, is now the right time to invest? There are many more homes to choose from and many sellers out there ready to make a deal. More than I've seen in seven years! If I was a buyer, I may wait a little longer, but I sure wouldn't want this down cycle to pass me by.

On another note: Looks like the Cayucos Car Show is a success! There are tons of people in town today and the weather is sunny, warm and beautiful. It was a great day for my open house too....I did have a better than usual turnout...maybe there will be sales to be made, especially if the sun keeps shining and the ocean keeps sparkling like this!!!!

Market Visual

In relation to my previous article, here's a graph showing how the market has changed over the past four years on the scenic coast. It's interesting to see what happened with sales in July of this year right after the upset in the mortgage industry. It's a good visual of how real estate changes from month to month and what it typically does during the different seasons of the year as well. I wish we had one predicting what the next four years will be like. It's going to be interesting!

The Current State of the Market

Just before we reach the holiday season, I thought you may want to know what's been happening with the market in Cayucos, Morro Bay and Los Osos recently and over the past six months.

For Cayucos, there are currently 49 residential single family homes and condos for sale, 4 pending sale, and 26 have sold in the past 6 months. The average time it is taking for a home to sell in Cayucos is 139 days, or approximately 4.6 months. The average sale price to list price is 94%, so if a seller listed their home for $800,000 it most likely sold for about $752,000. The median sales price during the same time frame is $842,500.

For Morro Bay, there are currently 108 homes on the market, 9 pending sale or in escrow, and 55 have sold over the last 6 months. The average time on the market has been 121 days, or about 4 months. And the average list price to sale price is 95.8%. The median sales price is $570,000.

For Los Osos, there are currently 102 homes on the market, 11 pending sale, and 77 sold in the last 6 months. Average days on the market has been 119 days and average list price to sales price is 95.6%. The median sales price is $469,000.

Well, I hope that will give you some idea as to what's been going on recently with the numbers, and where people are buying right now. For sellers, it's helpful to see the time it's taking to sell a home and the actual sales amount compared to list price, which is similar in all three communities. The main differences are the amount of inventory and the median prices. It will also be interesting to see what happens with the market over the winter and in the next year or so.

Bill Tightens Tax Rules for Second Homes

Here is an article taken from www.realtrends.com regarding new legislation just approved that could affect owners of vacation homes or investment property, which are quite prevalent in our community.

Popular legislation to ease the tax burden on struggling homeowners could hit an unexpected constituency: people with second homes. The Ways and Means Committee, the House's tax-writing panel, approved a bill last week under which homeowners facing foreclosure won't get stuck with a tax bill if part of their debt is forgiven by lenders. Currently, forgiven debt is treated as income to the borrower and is subject to tax.

The committee decided to pay for the tax break, as required by congressional budget rules, by restricting homeowners' ability to avoid or reduce the taxes on the sale of second homes. The gain in revenue would be equal to roughly $2 billion over 10 years.

Under current law, a person can exclude from taxes up to $250,000 in capital gains on the sale of a principal residence. Up to $500,000 of gains can be excluded for married couples. A second home can become a principal residence as long as the taxpayer has lived there for two of the previous five years. The bill approved yesterday would change those rules. Under it, the size of the tax break for a second home would be tied to the portion of time, out of all the years a house is owned, that it serves as a principal residence. Living in a property longer would result in a larger tax break on any gains when it is sold.

Los Osos - Big Risk or Good Investment?....You Decide

Are you wondering why there are so many properties for sale in Los Osos? Even in this market there are over 120 listed in a town with a population of about 15,000 people. Well, maybe it's the sewer saga. Have you heard about it? People far and wide have heard about it...it's been national news. In a nutshell, here's the situation: most of the homes in Los Osos are on a septic system, the septic is affecting the ground water, the town needs a sewer, in fact they have needed one for years but it is now a dire situation, a project was started, there was controversy with the plant location, the board was recalled and the project was halted, the funding was lost, law suits erupted, causing property owners to be affected by increased costs and assessments. The good news for real estate investors looking for coastal property is that there are some good deals to be had right now. There's lots of inventory to choose from, causing competition among sellers. Many home owners are selling because the uncertainty of the assessment costs are a big concern, especially to those living on a fixed income. Vacant lots are for sale at a great price, if you're interested in future development, because they are unbuildable until sometime after the sewer is in. And, lot owners will not be assessed until they are allowed to build and become a part of the sewer system. Overall, the risks include potential continued delays in the sewer project which will further increase the costs to all property owners, but once all is said and done, coastal property, especially those with ocean views and a great "location, location location" may appreciate enough in value in the long run to offset these potential costs. So those of you looking at the bigger picture may see a good investment in Los Osos. You can learn more by clicking on the following links to the Los Osos CSD website and the California Waterboard website.

Is Now the Right Time to Buy, or Should I Wait?

Why You Should Not Wait to Purchase a Home
Even if you could "time the market," that strategy would most benefit first-time buyers.

You see, people who already have a home usually need to sell it in order to come up with the down payment for their next home. Even if they don't, they would have to carry the debt and obligations on two homes at the same time. This can create financial hardship, even when you rent out the previous home. There are maintenance costs, renters don't always make their payments on time, the rent may not cover the mortgage and other costs, and sometimes the property may be vacant.

>So if you are a move-up buyer and want to purchase your next home during a depressed market, you generally have to sell your current home during that same depressed market. If you want to sell during a boom, then you also have to purchase during the same boom.

It tends to equal out.

Finally, suppose you are a first-time buyer and wait think the end of a boom is near? If you guess wrong, are you going to wait...and wait...and wait...till the next depressed market? If so, you could miss out on loads of depreciation...

...and that is assuming you guess right about your market timing. In 1996, when the home market was struggling, who would have predicted what the next seven years would bring?

article from www.realestateabc.com

GOING GREEN

You can't call me Kermit yet, but I've recently decided to start trying to go green, well at least little by little. Here are some "Trends to Know" if you are interested in becoming greener or more environmentally friendly at home.

Copper roofs. Copper and copper alloys, such as brass and bronze, are showing up on roofs, entryways, facades, gutters, and downspouts. Despite being quite pricey to purchase and install, they’re seen as a good long-term investment because they tolerate inclement weather. “A copper roof that’s installed properly will last beyond 100 years versus a composition roof that may last only 30 years,” says Ken Geremia, manager of communications for the Copper Development Association in New York City. Copper elements also can be completely recycled, so you’ll never find them left on a site or plowed under a foundation, says Geremia.

Timber framing. Timber framing requires significantly less lumber than the traditional “stick-built” housing and almost always incorporates superior insulating panels (SIPS), which keeps heat and air conditioning from escaping the house. There’s less waste when large timbers are used, compared with conventional construction that produces sawdust and waste every time a 2-by-4 stud is planed, says Frank Baker, president of Insulspan and Riverbend Framing, part of PFB Corp. in Calgary, Canada. In addition, less energy is needed to power machines and kiln dry wood because timber framing uses freshly cut wood, he says. Timbers are prefabricated and arrive at the building site ready to be assembled, paring construction waste. Costs vary according to finishes selected, just as they do with stick-built housing.

Windows that beat the heat. Low-emittance (Low-E) windows, doors, and skylights offer natural light while blocking the sun’s UV rays that heat up the inside of a home, sometimes necessitating air conditioning. The special low-E glazing also stops the sun from fading fabrics, wall coverings, and artwork. When shopping for low-E windows, find out what percentage of rays are blocked by checking the UV label on the glass, advises Rod Clark, product marketing manager for Jeld-Wen Windows and Doors in Klamath Falls, Ore. Most low-E products block 70 percent to 90 percent. Next, examine the glass for clarity. “Most people want glass that’s clear rather than with a slight tint or color,” he says. Though some manufacturers may tout triple over double glazing, Clark says it’s usually more than you’ll need.

Rainwater holding tanks. Capturing rainwater and storm runoff helps reduce the burden on local sewer systems and captures water that can be used in other ways, such as for watering the yard or flushing toilets. In the National Homebuilder Mainstream GreenHome, a 4,000-square-foot demonstration home being completed in Raleigh, N.C., a rainwater cistern and detention tank system will show that 95 percent of stormwater on a site can be recycled, reused, and absorbed. The rainwater cistern will collect water from the roof and gutters, filter it multiple times, and direct it to indoor plumbing, the laundry, and the sprinkler system. Overflow from the cistern will be funneled into inexpensive detention tanks to be absorbed gradually back into the ground.

Chemical-free lighting. LED lighting (LED stands for light emitting diodes) is a semiconductor that emits light when an electric current is applied. One big advantage: It contains no hazardous chemicals like other lighting does. For instance, compact fluorescents contain mercury and incandescent bulbs have gasses that hurt the ozone layer. In addition, an LED fixture uses 80 percent less energy than a traditional incandescent light bulb and has the ability to last up to 20 years, says Ron Lusk, chairman, president, and CEO of the Dalllas-based Lighting Science Group Corp., the first company to market a high-output, dimmable, Edison-base white-LED light bulb. LED bulbs also provide quality crisp light that shows colors in a natural palette, Lusk says. The downside: the initial cost. A typical 40-watt LED light will run about $39 while an incandescent light will cost $4 to $5, Lusk says. He believes that prices will come down as more businesses and home owners switch, as power companies offer better consumer rebates, and if the government makes the purchase of these energy savers deductible.

Green toilets. Water-conserving toilets can boost your budget while also helping the environment. “Make smart choices in choosing products throughout your house, and you can save 30 percent to 50 percent on your annual water bill,” says Ori Sivan, co-owner of Greenmaker Supply Co. in Chicago, which sells environmentally sensitive building products and materials. New green toilets conserve water in different ways: low-flow toilets use about 20-percent less water per flush, dual-flush toilets with two buttons give home owners the option of flushing with a half or full tank, and pressure-assist toilets reduce water usage by half and yield a powerful whooshing sound, says Sivan. Toto’s Aquia dual-flush toilet with a soft-closing seat (pictured at right) costs $300, comparable with other quality toilets, Sivan says.

Solar orientation. Face a home or an addition in the right direction and build it with the right materials, and you’ll reduce the amount of heat and cold that enter from the outside. That’s what home owners Ross and Tami Bannister did with their new T-shaped farmhouse (pictured at right) in Grapevine, Texas. They wanted the look of a 19th-century structure, but the functions of a modern-day green structure. When completed this September, the 2,300-square-foot house will be a demonstration project for the U.S. Department of Energy’s Building America program. The Bannister’s farmhouse was built near the back of its lot in a north-south direction to take advantage of prevailing winds that come predominantly from the south. The home has deep porches on the east and west to shade the home from the harsh summer sun. Large pecan trees provide more sun protection. In addition, the roof is insulated with a new DuPont product called AtticWrap — a breathable membrane that creates an airtight seal to reduce air leakage. The house also has low-E windows.

Induction cooktops. Unlike traditional cooktops that heat up the cooking surface, the coils of an induction cooktop release their energy directly to the pot or pan and its contents. That means less energy is diffused in the cooking processes. It also means that the cooktop surface remains cool to the touch, making it less likely that cooks or kids will burn themselves, says Amir Girgis, managing director of Diva de Provence, a company that first produced induction cooktops for restaurants and has manufactured them for home chefs since 2002. The company’s 30-inch and 36-inch cooktops will be joined by a 36-inch induction range this fall. The technology still is more expensive than comparable quality electric and gas appliances, though home owners should see energy bills eventually drop. Cooks also must use pots and pans with a ferrous metal base, says Girgis.

Geothermal heating and cooling. Instead of using a traditional furnace that heats or cools air and emits carbon monoxide during the process, geothermal pumps are filled with water and glycol and rely on the earth as a heat exchanger. In winter, the system sends warm air into rooms; in summer, it brings cool air. Though the initial cost is twice as much as a traditional heating and cooling system, the payback comes five years down the road when you start reaping the benefits of much lower heating and cooling costs, says developer Ron Fleckman, president of Cyrus Homes in Evanston, Ill. His company is building 40 townhouses in Evanston’s Church Street Village development, which uses a geothermal system and other green elements. It is one of the first communities nationwide to test this type of construction. “Because the cost of natural gas is climbing, the payback will be quicker,” he says. Home owners can also retrofit an existing house with this system.

Attic heat blocker. TechShield roofing panels, produced by LP Building Products in Nashville, stop the domino effect of inefficient roofing material. Poorly insulated roofing lets radiant heat into the attic, which then spreads throughout a home and requires the owners to turn on the air conditioner. By contrast, TechShield blocks up to 97 percent of the radiant heat, reduces the attic temperature 30 degrees, and cuts energy consumption and carbon gases as a result. “You can cut monthly energy bills by as much as 20 percent,” says Rusty Carroll of LP Building Products. The panels are made of a thin layer of aluminum foil laminated to OSB (oriented strand board) roof sheathing, which is made from fast-growing trees, and installed in the attic of new construction. The panels are used in conjunction with insulation rather than as a substitute, Carroll says. He recommends them both for houses in the South and Sunbelt where rays are strongest. A 3,000-square-foot house might cost $1,000 to $1,500 to outfit with the panels.

Reclaimed wood countertops. Fast-growing plants like bamboo, and already-cut woods that aren’t being used, find new life as gorgeous countertops thanks to entrepreneurs like Ken Williamson, founder of Atlanta-based The Craft-Art Co. The wood he uses is readily available and comes in many variations of color and texture, from antique heart pine found in shuttered Southern mills and old dilapidated farmhouses, to red oak and Douglas fir just waiting to be recycled from the bottom of pickle vats. To keep the countertops looking their best, Williamson uses a clear, organic tongue-oil varnish.

Nontoxic paint. To keep indoor air clean and cut down on landfill pollutants, many consumers are using paints that don’t contain toxic Volatile Organic Components, or VOCs. These paints come in a variety of colors and finishes, and are offered by mainstream paint companies, from Sherwin Williams to Benjamin Moore. But for a more unique look, check out Italian-made Oikos paints, which come in 26 unusual finishes such as Venetian Stucco, Velvet, and Pearl.

Formaldehyde-free insulation. Building products such as insulation can emit traces of the chemicals they’re made with, which pollutes the air inside of homes. That’s why manufacturer Johns Manville in Denver made the decision in 2002 to remove formaldehyde from its building insulation and duct board. By removing the formaldehyde from its plant and manufacturing facility, the staff isn’t subject to it, and it also improves the environment around our plant so it helps neighbors, says Scott DeShetler, director of marketing and communications for the company.

Smart irrigation systems. WeatherTRAK controllers automatically adjust watering schedules based on the needs of your landscape and local weather conditions. The system’s “brain” receives satellite data with information about local weather conditions. An additional moisture sensor shuts down the system if it starts to rain when the sprinkler is on. Manufactured by HydroPoint Data Systems Inc. in Petaluma, Calif., the basic model starts at $500 and prices climb to $5,000, based on the number of sprinkler heads. Besides better looking lawns, home owners reap lower water bills and contribute to a healthier environment.

Green furniture. When old barns, factories, and farmhouses are torn down, their wood can be salvaged for artistic furniture. Eric Mann, owner of New England Country Custom Interiorsin Clinton, Mass., sells furniture made from materials that would most likely end up in a landfill. Mann also works “green,” using solar heat to power machinery to craft his early American furniture reproductions. He also finishes pieces with biodegradable milk paints rather than oil or latex choices. A farm table with a barn-board top measuring 5 feet by 8 feet runs between $500 and $1,500.

taken from: "Sustainability takes root, What’s New on the Green Scene" at Realtor Magazine online, www.realtor.org

Okay, maybe you can start smaller like changing out your light bulbs or conserving water. There are plenty of things you can do to start making a difference little by little, but think about what an impact you can make if you're planning to remodel, build or even furnish your home with some of these great ideas.

Morro Bay Cutie

Anyone looking for a coastal home at a great price should take a look at this Morro Bay Cutie. It's neat, clean and freshly painted. A wonderful rental home and investment for the future, or use it as your own vacation spot; it's in a nice neighborhood, just a minute or two from the beach and easy access to shopping and restaurants. For more photos and additional information visit www.600avalon.com And, please feel free to contact me directly anytime!

The Scoop on Tighter Loan Standards

I regret the amount of time that has passed since my last post. The good news is that real estate activity is increasing right now, so things have been busy. More homes are starting to sell and fewer new listings are coming on the market. A great recipe for a strong market this summer and fall! I'm sure you have heard the news regarding the fallout from some of the creative financing and low interest loans that were so popular recently. If not, here's the scoop...lenders who have offered creative packages to buyers in the past, such as low adjustable rate mortgages, 100% financing, stated income loans, interest only loans, etc. are experiencing more and more foreclosures recently due to the changing market, the economy, and other related factors. Here is an article that may help today's buyers understand the current loan standards...

Daily Real Estate News | May 29, 2007
Tighter Lending Rules Keep Some Buyers Out
Mortgage lenders are tightening standards in ways that can make it much more difficult for potential borrowers to get approval for loans.

The new standards fall into the following areas, according to Wells Fargo & Co. and other large lenders:

Ability to repay. Buyers are no longer being qualified at the low initial rate. They must qualify for the loan payments at rates equal to what the loan would be if it reset at a higher rate.
Down payment. Lenders want buyers to put some money down, even as little as 5 percent or 10 percent. Loans for 100 percent of the price are very hard to get.
Credit score. Credit scores range from the high 300s to the low 800s. Borrowers with a credit score above 680 are likely to qualify for a reasonable deal. Between 660 and 680, they may qualify, but the deal could be pricey. Potential borrowers with a score of 620 or less need to raise their scores before they can qualify.
Income and income verification. Producing proof that a borrower has a job is key; “stated income” loans are much more difficult to get. Also lenders are unlikely to approve a loan in which the home buyer will spend more than 45 percent of his gross income paying off debt, including paying the mortgage.

Source: The San Francisco Chronicle, Carolyn Said (05/26/07)


If you would like more information about the different types of loans available and getting pre-qualified, I have some great local lenders that I work with on a regular basis. I would be happy to refer you to a qualified professional so you can get started on the right foot!

"60 Minutes" Worth of Real Estate Marketing Advice

Did anyone see the piece on CBS's 60 Minutes about buying and selling homes with discount internet brokers? Well just to let you know there has been a lot of resentment from the full-service brokerage industry, and from NAR, the National Association of Realtors, named in the piece. The following is an article taken from RealTrends.com, a real estate website providing information to industry professionals, which mentions some of the misinformation presented in the program:

"According to the National Association of REALTORS, CBS' show "60 Minutes" gave them "the empty chair treatment" in its May 13th segment that examined the impact of online brokerages on the real estate industry. The show featured interviews with a representative from the now-defunct eRealty and the president and CEO of Redfin, but no one from NAR, even though NAR twice offered and prepared association spokespersons for interviews with Leslie Stahl.

NAR is in communication with 60 Minutes and accuses the program of being unbalanced in its reporting and presentation of misinformation. NAR will be sending the CBS network a letter demanding an opportunity to correct any errors and misrepresentations.

Here are some examples of the misinformation that NAR notes:

Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not six percent, but 5.1 percent, according to REAL Trends.

Error: NAR is the industry's "governing body."
Fact: NAR is a trade association. It does not govern the industry.

Error: In 2003, NAR issued new rules of its own that threatened to block Internet discounters access to the MLS.
Fact: The Virtual Office Web site policy did not block access to MLSs for discounters or any other brokers who are members of the MLS.

Error: The MLS is the database that lists virtually every home for sale in the country.
Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases," but a private exchange of offers of cooperation and compensation between real estate brokers.

Error: Eight states have "minimum service laws" that require Realtors to provide a level of service many Internet discounters can't afford.
Fact: "Realtor" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

Error: The brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates.
Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

NAR expressed disappointment that CBS made the decision it would rather interview opponents and let them make "unanswered - and inaccurate and unfair - accusations" about Realtors and NAR policies. (REALTOR Magazine Online)"

I, for one, am all for technology and tools that will assist buyers and sellers in achieving their real estate goals. However, computer marketing, virtual tours, GPS, and instant messaging will never replace the hands on, face to face, personal attention, that a full service real estate professional can provide a buyer or seller that is making one of the biggest financial decisions in their life.

Spring Market Update

Here's a brief summary of what's happening in the market right now.

For Morro Bay there are currently 69 single family homes listed for sale. The lowest was listed on May 2nd for $389,000 and is a 2 bedroom, 1 bath cottage with a peek of the ocean and approximately 676 sq.ft. The highest was listed on over a year ago for $3,000,000 is a 2 bedroom, 2 bath, 1450 sq. ft. fixer with views of the hills, but it sits on 20 acres of prime agricultural land. The average list price is $812,113 and the average recent sales price is $635,029. There are 17 homes in escrow right now and 51 homes have sold in the past six months. It is taking about 124 days for homes to sell in this market.

For Cayucos there are currently 48 single family homes actively for sale, 7 pending sale and 11 have sold in the past six months. The lowest was listed in April for $549,500 and is a 1 bedroom, 1 bath, remodeled 1950's cottage with ocean views and approximately 800 sq. ft. The highest was listed on May 1st for $4,950,000 and is a brand new 3 bedroom, 4 bath, 2450 sq.ft. oceanfront home. The average list price is $1,414,855 and the average recent sales price is $973,082. It is taking about 159 days for homes to sale in Cayucos.

What these statistics are telling us is that the market is looking good for the spring-summer season. Inventory is down a little bit and even though there have been several new listings, sales have been picking up with more buyers coming over to the area. And, average market time is decreasing which can be attributed to the fact that most sellers are finally being more realistic about how the market has changed and the importance of pricing their home right in this market so that it will sell. I am very optimistic that the market will be strong over the summer as more buyers make the decision to invest during this "favorable" period.

Coldwell Banker Open House Weekend and The Morro Bay Car Show

This weekend there's lots going on if you're coming to town. First of all, you may want to check out all of the open houses in the area. Coldwell Banker Liberty along with Coldwell Banker Premier, and Coldwell Banker Don Bricker are coming together to showcase listings in Cambria, Cayucos, Morro Bay, San Luis Obispo, Avila Beach, Shell Beach, Grover Beach, Arroyo Grande, Nipomo and Santa Maria this weekend and and throughout May. Visit participating open houses this month and enter to win two Aerosmith tickets and admission to the Mid-State fair in Paso Robles on July 25th. (certain rules apply) And, by the way, if you didn't already know, the Aerosmith tickets sold out in the first few hours they became available. The sample flyer to the left is being distributed through the San Luis Obispo Tribune. Also, Morro Bay has it's annual "Cruisin Morro Bay" car show, this Friday 6:00 to 8:00pm, Saturday 9:00am to 4:00pm and Sunday 9:00 to 11:30am. There'll be over 6000 cars to check out. It's fun and it's free!

Slump? What Slump?

Well, okay...we have been in a minor slump...if you can even call it that. But it was bound to happen eventually. It had to. Prices could not realistically keep appreciating as quickly as they did over the past few years without some kind of adjustment. But does our market truly mirror what is happening in the bigger cities like LA or the Bay area? What about the valley, like Fresno and Bakersfield since that's where many of our buyers come from? What about the rest of the country? Although we have many full-time residents in Cayucos and Morro Bay, the majority of homes in our market are vacation homes or second homes. Unfortunately, there aren't many families and young singles living full time here (at least not for very long) because of the scarcity of jobs and high cost of housing. This resort destination and retirement community is influenced by the "coastal lifestyle" and comprised of local activities, attractions and the coastal weather. For this reason, our real estate market is unique and it is doing much better than the market in other areas of the state and the country. Another factor affecting values are the thousands of Baby Boomers starting to retire and looking for the "coastal lifestyle".

So...buyers who continue to wait for beach property to "bottom out" just might be disappointed if they wait too long. In this light, today's market's lookin' pretty darn good.

Read an article from MSNBC.com regarding the record vacation home sales for 2006 at http://www.msnbc.msn.com/id/18405318/from/ET/

Extreme Home Makeover

How a "Brady Bunch" House Became the Gem of the Neighborhood

Here's the story..... of a well kept home that was owned by the same person since it was built in 1968. The original owner was a 90 plus year old woman who meticulously kept it clean and maintained throughout the years, but "style-wise" the house was stuck in the "Brady Bunch" era. The interior boasted shag carpet of various shades of brown in the living room and bedrooms, autumn gold linoleum in the kitchen and baths, avocado green appliances (as clean as if they were never used) bubble glass light fixtures, pop-corn acoustic ceilings, dark wood paneling, and double-layer fabric drapes on every window. The exterior, of course, was done in gold-beige stucco with dark brown wood accents and a triple layer shake roof. The entry porch was enclosed by a wooden structure painted dark brown and covered by sheets of gold bubble plexiglass to shelter visitors from the rain. And the spacious yard was filled with nothing but juniper shrubs and ice-plant. I'm certain in it's heyday, back in 1968-1970 the home was the gem of the neighborhood, but for the 21st century it was in need of an "extreme home makeover".

Well, the 90 plus year old woman sold the Brady Bunch house to a young family who bought the home to live in and remodel little by little. Its best qualities were the location, the ocean view, and the manner in which it was lovingly cared for throughout the years. Before they moved in, they had the popcorn ceilings scraped, paneling removed, floors redone in cherry wood and travertine, new lighting and paint. They spent the next year finishing the interior with decorative touches like crown moulding, expanding the master bath, adding a closet, creating an access from the garage into the house, adding new appliances and granite counter tops in the kitchen and more. The following year, the roof and all of the windows were replaced, copper rain gutters were installed, limestone pillars and windowsills were added, the deck was re-built, the front entry was redone, the yard was redesigned and landscaped, and the neighbors cheered! In fact, they were even a little inspired. All around the neighborhood you could see all kinds of home improvement projects going on. Well, the time has come for the hard working family to set their sights on a new project so they are selling this beautiful home and hope to find a buyer who will love and enjoy it. An "extreme home makeover" helped a "Brady Bunch" house reclaim its true calling as the gem of the neighborhood.

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To Have Your Cake and Eat it Too

When looking to buy on the coast, the big dilemma for many buyers is deciding whether they want a home where they can be happy just looking at the water or do they really want to walk to the beach every day. Finding a home with a panoramic ocean view that is close to the beach is like having your cake and eating it too. This is sometimes tough to do in Cayucos and Morro Bay, unless you can afford to purchase an oceanfront property, because of the layout of the areas and the restrictions of the neighborhoods.

In the Beachtract neighborhood of Morro Bay, which is located West of Highway 1 down by the sandy beach, the homes are within a block of the water, but the city does not allow second stories so most of the homes do not have ocean views. It is rare to find these single level homes positioned so you can look down the street toward the water or built in a manner where the windows are angled toward the ocean. There are, however, several higher priced homes in this neighborhood, either on the ocean at over $2 million or across the street from the beach with ocean views; so you have to pay to get the cake. By the way, there's a great buy right now on a darling one bedroom in that neighborhood listed for $600,000....No view, but close to the beach.

Across Highway 1 from the Beachtract neighborhood is where you find the homes with the best views, but then you sacrifice having the close proximity, although you can still walk to the beach by crossing the highway at one of two stop lights with crosswalks. The higher up the hill you go in this North Morro Bay neighborhood, the better chance you have of getting a more spectacular, panoramic whitewater view and keeping your view from being blocked by other homes that may build up some day. The homes that are higher on the hill are often more expensive because of these views, along with the cost to build reinforced foundations. They usually have two or even three levels and stairs are often a drawback for some buyers, especially those seeking to purchase for future retirement. An elevator is usually a plus. Alternatively, if the home is built on the downslope side of the hill, the living level is at the street and the rest of the home, i.e. additional bedrooms, is downstairs. This is an optimum floor plan because you can drive into the garage, walk directly into the living level, enjoy the panoramic views without stairs and everything else goes down instead of up.

The Harbor tract is also built on a hill with views of the harbor. The Cloisters has newer homes, some are two-story with views, and it is a flat neighborhood on the West side of Hwy. 1 with dunes separating the neighborhood from the ocean. And the Heights, which is sort of a deceiving name, is the downtown area of Morro Bay near the golf course, state park and Embarcadero. Homes in the Heights are also very desirable because of the proximity to all of the activities in town, i.e. shopping, restaurants, the festivals etc. and many have views of the water and harbor. These neighborhoods, except for the Cloisters, are not very close to the sandy beach.

The layout of Cayucos is somewhat similar to Morro Bay in that the numbered streets are closest to the beach and although two story homes are allowed, there are restrictions as to height. The numbered streets area is flat and you cannot build above your neighbor and get a panoramic view of the ocean. All of the homes in the numbered streets are within a block and 1/2 to the beach and are West of Hwy 1 and some do have views of the water, but unless you are oceanfront, they are not panoramic. The best views, however are those up on the hill in Cayucos, either in town or in South Cayucos on the East side of Hwy. 1. Because Cayucos is primarily a "beach town" anywhere you are in Cayucos is a fairly easy walk to the beach.

So, when thinking about what is important, a panoramic ocean view or being really close to the sand, unless you plan to buy an oceanfront you may have to consider choosing one criteria over the other. However, if you can compromise a little bit on each, there is a way, by finding the right spot and the right house in the right neighborhood, you can have your cake and eat it too.

State of the Market

Here is a brief summary of the current state of the market in Cayucos and Morro Bay. For Cayucos there are currently 52 homes for sale which is quite a bit more than usual compared to the past couple of years. The least expensive home is listed for $549,000 and the most expensive is an oceanfront listed for $4,950,000. 24 of the 52 homes are priced over $1 million and the average list price is $1,389,481. The average time it is taking for a home to sell is 147 days. There are 3 beachfront homes currently on the market. The good news for buyers is that there is plenty of inventory to choose from which is unusual for Cayucos, and with the competition among sellers, buyers can get a better price than they've been able to in the past. Even so, the values are showing that it is still a very desirable little beach town.

Regarding Morro Bay, there are currently 85 homes for sale including condos. The least expensive is a condo for $325,000 and a single-family home for $397,650. At the top of the market in Morro Bay is a home listed for $3,000,000 on 20 acres and there is one oceanfront home for sale listed for $2,650,000. The average list price is $936,970 and it is taking 142 days to sell a home in this market. Morro Bay has more homes that are affordable as far coastal property goes and we are seeing the lower end of the market sell fairly quickly. Buyers are starting to come over to the area now that tax season is over. This is the time of year that sales begin to pick up and I am very optimistic it will turn out to be a good year over all. Right now, however, we need to reduce our inventory little by little to balance out the market.

My New Blog

Welcome to my new blog about real estate on the central coast of California. I have been a Real Estate Agent in Cayucos and Morro Bay for about 7 years and I am excited to share what is happening in today's market. I will be writing my thoughts, sharing ideas and experiences and posting information a few days a week and hope you will find it interesting and helpful. Please visit often and send me your questions and comments. Thanks!

Sunset over Estero Bay