San Luis Obispo and California's Central Coast

The Central Coast of California is noted for its pristine beauty and scenic wonders. Tourists are drawn to its small, charming communities and their colorful festivals. Residents enjoy the placid atmosphere of small town living. Everyone enjoys the year-round outdoor activities enabled by a mild climate.

The Central Coast is located approximately halfway between the major California cities of Los Angeles to the South and San Francisco to the North. The Mid Central Coast is defined by Monterey and San Luis Obispo Counties. Although we are primarily focused on the Mid Central Coast for purposes of this article, which includes the communities of San Luis Obispo, Arroyo Grande, Pismo Beach, Templeton, Paso Robles and Atascadero, the California Central Coast in its entirety additionally encompasses the counties of Santa Cruz, Santa Clara, San Benito, Santa Barbara and Ventura.

The economy is primarily propelled by agriculture and tourism, and the region is known as one of the most important farming centers in the United States.

Over the last several years, many Californians migrated to the Central Coast to escape the rapidly escalating home prices of regions to the North and South of the Central Coast and to escape the pressures of large, overcrowded cities. Of course, the cause and effect of this influx was an upward pressure on housing prices in the desired regions.

Monterey County is a good example of what has happened to land values since the migration began. The county, once a moderately priced housing area, is now ranked as one of the most expensive counties in the state. Currently, a single family, detached home in a desirable area is valued at a median price of $700,000.

You can fare somewhat better in San Luis Obispo County, with median home prices in the mid $400,000 price range.

As of this writing, many home owners realize the recent increases in interest rates equate to fewer buyers, more available inventory and houses taking longer to sell – as the picture changes from a strong seller's to a strong buyer's market. A result of this trend is a softening of seller pricing to a more realistic level designed to attract a buyer who now has many options.

Additionally, if a house is not priced within a range of what other similar properties are selling for - chances of the house being sold in a reasonable period of time diminish. In fact, the house might not sell at all.

For now, at least until early to mid 2007, it does not seem likely that the picture will change unless interest rates are once again lowered and the seller's market strengthens further. However, fears of the real estate bubble bursting have as yet proven unfounded and although the market has slowed, it is far from stagnant.