SLO LIFE Winter 2010

| REaL ESTaTE
ask The Experts
Where do you see SLO real estate heading over the next year?
Charlotte Storlie
The Mortgage House
Oh, that crystal ball that we all wish we had!
Based on what I am seeing in our mortgage
applications and closings, which have been at
record levels the last few months, I feel that
local real estate values will continue to stabilize
and increase moderately in the next year. I
expect the incredibly low interest rates to
continue, possibly through next year. Much of
our inventory in the area has been diminished
by short sales (sales where lenders have agreed
to let the borrowers sell and settle for less than
owed) and foreclosures. The median price has
increased slightly, yet affordability countywide
is at an extremely good level. Values have come
down to where many people can now afford to
buy, especially with the allowable maximum
loan limits for conventional and FHA, and the
low down payments still available through
FHA. This has the effect of increasing demand,
which, in turn, reduces supply and pushes
values upward.
Inspired Habitats
San Luis Obispo
Specializing in
Home Staging
Personal Organization
& Feng Shui
Karen Strombotne
805.439.0270
inspiredhabitats.net
I am often optimistic regarding the state of San Luis
Obispo’s real estate market and today more so than
ever. Perhaps not in the way most would expect,
however. My prediction for the next 12 months is
“more of the same!” Sellers will have to continue
to adjust their perception of value downward a
little further and buyers can expect to purchase
more home for their money, but may continue to
struggle with finding the perfect home with our
small amount of available inventory. Opportunity
exists for those looking to sell what was perhaps
a starter home and upgrade to a larger home
and for those going in the opposite direction
and downsizing their home needs. Basically, you
should look to sell lower, buy lower and do so with
historically low interest rates. We have experienced
an increase in first time homebuyers stepping into
our market too, something I expect to continue
over the next 12 months. Initially spurred on by
Federal and State tax credits these buyers continue
to pursue home ownership through the increasing
availability of low down payment loan programs.
Most people watching or in the market today may
think about optimism in our market in terms of the
return of increasing values. I think we have every
reason to be optimistic about a little stability and a
little more of the same. This is ultimately the path
to the return of increasing values and a healthy real
estate market for our city.
Gavin Payne
The Real Estate Group of San Luis Obispo
SLO LIFE
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