MARKET REPORT - MORRO BAY, CA

REVIEW OF SINGLE-FAMILY RESIDENTIAL SALES - MORRO BAY, CA

JANUARY TO MARCH 2007 VS. JANUARY TO MARCH 2006

Presently, real estate activity in Morro Bay continues to be sluggish at best.  We were encouraged by the flurry of activity at the beginning of this year.  We saw more pending sales. For a short while, prices appeared to be stabilizing.  Now as we approach Spring, buying activity seems to have stalled.

Let's take a look at the home sales for the first quarter of 2007.  Compared to the same period last year, the median home prices showed a decline by about 13%.  However, we did see an increase of 19% or five more sales in the first quarter of 2007, versus first quarter 2006.  Also, homes continue to stay longer on the market.  The time taken to sell a single-family residence has also doubled this year.  In the first quarter, the average marketing time has increased by 117%.  This means it will take at least five months to sell a single-family home in Morro Bay.

So, what's selling in Morro Bay? As of April 10, 2007, only 17 single-family homes are pending sale.  More than half, 14 are under the $700,000 price range.  The highest number of pending sales; five of them, are those priced between $550,000-599,000; followed by four properties in the $400,000-499,000 price range.  Only one property is in escrow in the $750,000-799,000 price range, and two are in the over-the-$1M range.  There are no pending sales for properties priced between $800,000-999,000.

Will home sale prices continue to decrease? It looks likely.  Traditionally, Spring is a busy season for the Central Coast.  Many factors: mortgage interest rates, economy, jobs, uncertainty in war, impact home sales, and the Central Coast real estate market is not immune to these factors.  On the upside, our number of homes for sale remains low, and the region is desirable for those seeking to retire or settle in a naturally beautiful environment. Let's review the market again after the second quarter.

Footnotes:

CDOM - Cumulative Days on the Market

SP/LP% - % difference in selling price versus listed price.

The information is obtained from the local Multiple Listing System, and is deemed accurate though not guaranteed.  Median Prices fluctuate depending on the number of sales, and price sold.  The prices are based on single-family homes that sold during the two periods being compared, and does not discriminate between the number of rooms, baths, locations, or condition etc., of  the properties.