Team Sweasey's Real Estate Blog

March 14, 2018

What’s Happening in the San Luis Obispo Market Right Now?

Today, I’d like to recap what happened in our February market.

The numbers we’re seeing right now are pretty consistent compared to this time last year. However, because our inventory is a little lower, we are seeing a lower sales volume this year compared to last year. That said, the average price for the month of February is significantly higher.

I pulled a few areas that stood out. For example, in Morro Bay, the average price for the seven sales we had this February was $783,000. Last year during the same period, the average price was $605,000, so that’s a 29% jump in the average price.

With seven home sales, you can have four high-end home sales, and that skews our average. So does that mean prices are up 29? No, that’s just one month. In general, though, we are seeing a pattern of increasing home prices and fewer sales.

In Paso Robles, the average price in February 2017 was $415,000. This year, the average price was $493,000, resulting in an 18% jump. That is over a large volume of sales, with 27 home sales last year compared to 21 this year. Again, there has been a slight drop in sales and a slightly higher price.

2018 should continue to be a solid market similar to last year. One of the main differences to pay attention to is interest rates. At this time last year, rates were around 4% for a 30-year loan. Today, they have gone up to 4.4% or 4.5% for a conventional loan of $453,000. That’s not a life-changing difference year to year; it’s only an extra $100 or $110 a month.

However, if interest rates continue to go up (which there is talk of), that could have an impact on affordability, which could affect the market and sales.

In general, our market is on a steady climb. There aren’t many homes available, so now is a good time to sell your home or buy one to lock in a low interest rate.

If you have any other questions about our real estate market, just give me a call or send me an email. I would be happy to help you!

Feb. 14, 2018

How Did the San Luis Obispo Market Do in January 2018?

The market stats for January are in. How did the January 2018 market compare to the market in January 2017?

In general, we have very low inventory. On average, inventory is down 5%. You have to be careful with averages, though. Someone once said, “If your feet are in the fire and your head is in the freezer, your average temperature might be okay, but does that reflect how you’re feeling?” Probably not.

On average, active listings in San Luis Obispo are down by about 20%. In Nipomo, active homes are up 47%, probably because they have had a lot of new inventory. That is an anomaly, but it does impact our average. In Arroyo Grande, active inventory is down by about 25%, and even Avila Beach is down 50%. We do a lot of sales with our Blue Heron office, and the Avila Beach market doesn’t have much for sale, and it’s a small market.

Sales are down as well, without a doubt due to the lack of inventory. If there were more properties to sell, there would be more sales. In Grover Beach, sales are down 60%. In Paso Robles, sales are down by 46%. If we had the homes on the market, there would be more sales.

Although inventory and sales are down, it varies depending on which area and price range you are in. If you have any questions about your specific area, just give me a call or send me an email. I’d be happy to help you.

Jan. 25, 2018

2660 Nutmeg Av, Morro Bay 93442

Enjoy panoramic ocean views from the front deck and living room of this stunning custom home. Beautifully designed Artesian glass front door sets the dramatic tone to the entrance into the luxurious living room with adobe style fireplace, custom built-in shelving and large picture windows to take in the ocean views. Formal dining area opens to the kitchen featuring breakfast bar seating, custom inlaid slate counters and French door access to a lovely patio with morning sun exposure, ideal for sitting and enjoying that first cup of coffee. Extensive slate stonework, travertine tile and hardwood floors are featured throughout. Great upper bonus room with 360 degree views and offers so much potential for possible expansion. Licensed as a vacation rental, adds additional value and income potential. Don't miss this great opportunity!

Call us now on (805) 781-3750 to arrange your viewing.

Jan. 15, 2018

6970 Canada Vista, San Luis Obispo 93401

New San Luis Bay listing. Located within the gates of Edna Valley Ranch with spectacular views of the surrounding vineyard and oak studded hills, this well-appointed single level custom home is nestled on 1.3 acres surrounded by more than 1600 acres of dedicated open space. Architect designed, the home features 4737 sq.ft. of living space with 4 bedrooms, 4.5 baths, and a private master wing with a separate office and bath which could be converted into a 5th bedroom. Stunning gallery entrance leads to the formal living room with slate floors, a fireplace and sliding glass door access to the private patio and yard. Beautifully landscaped grounds.

So much more to see. Click the link and contact us on 805-781-3750 now to arrange the earliest possible viewing - 

Jan. 11, 2018

Will the New Tax Laws Hurt Our Local Real Estate Market?

How does the final tax reform bill affect real estate?

One of the big concerns people had while the bill was being written was that you could no longer do a 1031 exchange on an investment property. A 1031 exchange allows you to sell a non-owner occupied investment property and roll all the proceeds into another investment property without paying any taxes. They did make some changes to the 1031 exchange, but those changes don’t affect real estate, so that is good news.

They were also talking about reducing the deductible amount of interest on the size of your loan from $1 million to $500,000. Ultimately, they agreed on a $750,000 cap. From December 15, 2017 onward, if you take out a loan for over $750,000, only the interest on the first $750,000 will be deductible.

If you have a $1 million loan right now, that has been grandfathered in. You will get the full deduction, even if you refinance the loan. That will have an impact on the upper end of the market, as will some of the deductions we lose for state taxes.

The home equity line of credit has lost its deductible interest. If you have a home equity line of credit and you’re paying interest on that, check with your accountant, but I’m pretty sure that is no longer a deductible item.

In general, these changes won’t have a huge impact on our local real estate market, although it will have a bigger impact here in California than in areas like Arizona or Kentucky, where housing is cheaper.

Going forward, there is a possibility of interest rates increasing from around 4% to as high as 5%. Prices will increase a little bit, and the market continues to be strong. There’s not as much concern about a bubble.

If you plan on selling your house in this market, keep in mind that price is still important. Just because there’s no competition and your house is the only one on the market doesn’t mean you can overprice your home. Buyers will wait for another house to come along that has been priced fairly.

All in all, the tax plan won’t have too big of an impact on our market, and 2018 looks like another strong year for real estate.

If you have any other questions about our real estate market, just give me a call or send me an email. I would be happy to help you!

Jan. 2, 2018

2620 Koa Av, Morro Bay 93442

Featured Decorator House in the San Luis Obispo Tribune. Prominently located in the hillside area of Morro Bay making the most commanding statement in the neighborhood, this recently renovated vine-covered beach-side house embraces meticulous charming cottage details with gorgeous hand scraped maple hardwood throughout.

An open floor plan is bathed with a bright sunshine-kissed interior. Carrara counter-tops adorn the beautiful white kitchen with glass cabinetry, fluted farmhouse sink, five burner stove and so much more. The easily accessible finished attic provides additional Usable square footage; the perfect spot for an artist's loft/craft space or as an additional guest area.

Panoramic unencumbered 180 degree Ocean views, endless sunsets and the ever changing scenic beauty add to the wow factor. Off-street parking for up to 8 cars!

Click here to find out more and contact us on 805-781-3750 to arrange your early viewing.

Dec. 12, 2017

370 Crestmont Drive, San Luis Obispo, 93401

Located within the highly desirable Rolling Hills neighborhood of San Luis Obispo, this unique home features just under 4300 sq ft of living space on the main level, with 4 bedrooms, 2 full baths, separate media room, spacious great room with gas fireplace, vaulted ceilings, and two decks with beautiful views. One deck separates the media room from the rest of the house and the master suite features its own private deck. Attached 4-car garage with half-bath nearly 1600 sq ft to store multiple cars and toys.

The lower level of the home includes a cozy guest unit with a separate entrance featuring a living room, kitchenette, gas fireplace, bedroom, full bath and lovely views. Plenty of storage in the 1780 sq ft unfinished basement area with half-bath. Nearly completed wine cellar, an indoor exercise pool, plus an additional storage area/workshop. The home is completely handicap/wheelchair accessible, including 3-ft wide doors. Dual-speaker music system with individual room volume controls throughout the house, garage and deck. One-acre lot includes a waterfall feature with plumbing, electric wiring and 150+ tons of stone, ready for you to create your dream landscape.

Click here for more information and to arrange your private viewing -

Nov. 17, 2017

661 Oakridge Dr San Luis Obispo 93405

Just listed. A unique Frank Lloyd Wright inspired home, nestled within the trees with stunning views overlooking San Luis Obispo.

Entertainer's delight with the spacious living room opening to the dining area and kitchen plus multiple outdoor seating areas to relax and enjoy the beautiful view. Featuring copper counters, custom doors, polished concrete floors, a media room plus soundproof music studio.

The nearly 3/4 of an acre lot includes numerous fruit trees, solar panels and a putting green overlooking the city. Plenty of parking and storage in the 3 car attached garage. Located at the end of the cul-de-sac for added privacy.

Truly a one of a kind masterpiece.

Click the link to find out more -

Nov. 17, 2017

9018 San Gabriel Rd Atascadero 93422

A beautifully remodeled 3 bedroom, 2 1/2 bath home located in the desirable west side of Atascadero's south end, providing easy access to San Luis Obispo. Impressive vaulted wood beamed ceilings in the living room, family room and loft. Beautiful engineered hardwood and custom tile flooring through out, dual pane windows, new plantation shutters, wood blinds and solar panels. The fireplace with brick hearth is the focal point of the living room and is surrounded by windows bringing in the natural light.

Upstairs is a spacious loft ideal for a game room or additional bedroom.

The newly remodeled chef's kitchen featuring Alder cabinets and quartz counters,opens to the family room with French door access to the gorgeous grounds. Plenty of additional outdoor living space including a picnic area under the gazebo, sauna and an in-ground pool and spa with security gate. Large detached Shop and Barn with ample room for parking cars, toys and equipment behind the gated driveway. Country living at it's finest, yet just minutes to downtown San Luis Obispo.

Please click here to find out more.

Oct. 27, 2017

How Is the New Construction Trend Impacting Our Market?

Something is happening in our market. In the past year or so, we’ve had a number of new homes in the Serra Meadows Development come onto the market.

These homes are very nice, and have been taking up virtually half of all home sales each month.

A similar trend recently occurred with a condominium development called Avivo. It was difficult for those selling condos to stand up against these Avivo condos.

But let’s get back to today. Right now, we’ve got the largest increase of new home construction I’ve ever seen in my 26 years of business.

Toscano and Righetti Ranch both have a massive number of homes already for sale or coming soon to the market. There are many other developments as well. Avila Ranch has 720 new homes planned and San Luis Ranch has 580 new homes planned.

Between all of these developments, there are 1,920 potential new homes coming on the market in the next couple of years.

So, what does this mean? Last year we saw 600 homes close. This year we’ve had about 424. This means that those 1,920 potential new homes would amount to about three years’ worth of inventory.

So, if you’re considering a real estate transaction in the next six, 12, or even 18 months, you may want to let us help. We can answer any questions and help guide you through the process.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.