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/
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