The Central Coast is an Island of Stabililty
Friday December 7th, 2007 - 10:51:14 am
Dan Reddell Email
As the media continues to pound all things to do with real estate into the ground, I can’t help but remember what my Dad, a home builder, used to say during hard times, “Houses always sell at some point because people have to have a place to live.”

As stories abound about the tremendous number of foreclosures, the credit crunch, the proposed bailouts, the volatility in the stock market because of the housing issues, and so on, I would like to make the following points: The number of homes for sale on the Central Coast communities of Los Osos and Morro Bay are fewer today than last year at this time by at least 10%. There are only around 80 single family residences for sale in Los Osos, about the same in Morro Bay and half that number in Cayucos. The Cayucos number is interesting because there are usually only about 25 houses for sale in Cayucos at any one time. Now there are 45. Still, compared to other communities around the country our home inventory is low. The percentage of foreclosures in these two communities is miniscule compared to Santa Maria and almost zip compared to other urban area.

Supply is low, demand is low and prices are dropping, but not on the scale seen in other communities.

We are an island of stability. Sellers, for the most part, don't "have" to sell. Interest rates are dropping and we don’t have hurricanes, tornadoes, sleet, snow, ice, and there has never been a significant earthquake in historical times that caused a lot of damage in Morro Bay, Los Osos or Cayucos.

People who have to have a place to live are ready to buy as soon as they find the right place. Their main concern is not necessarily getting the best deal ever. They are simply concerned that they don’t overpay. Other buyers are on the sidelines because media figures like Jim Cramer of "Mad Money" are telling audiences on the Today Show to wait until next year to buy houses because the prices will be down.

Buyers and sellers are at a standoff right now, but it is only temporary. Interest rates are dropping and we have one of the most premier places to live in the world. If the rest of the country ever pauses from all their drama, turmoil and bad weather and looks around and sees us, hang on to your hats because we have the most valuable property anywhere—only no one knows it but us.

Dan Reddell
December 7, 2007


Permalink

Category: Articles by Dan Reddell