Real estate: Median price of Paso Robles homes soars to $575,000
Paso Robles 2020 Real Estate Review
– Posted by Pete Dakin, Agent / Owner of REMAX Parkside Real Estate
North County home buying demand has been strong since June 2020. Our county and community are experiencing a generational shift in real estate demand and activity. A seemingly perfect storm of low interest rates, remote job options, deteriorating urban environments, and the high cost of living in the city has resulted in an exodus of urban refugees seeking higher quality of life and lower housing costs. North County is in the right place at the right time to meet this frenzied buyer demand.
Our year 2020 started off strong but got a speed boost in the spring with COVID-19. As soon as our markets reopened, we saw severe supply and demand restrictions as the seller is unwilling to list properties with the COVID cloud overhead. The average price was $ 575,000 at year-end, down from $ 505,000 in 2019. This 15 percent year-over-year increase is similar to what many communities across the country have seen.
A year ago there were 340 houses available for sale; today there are 194. It is the strongest seller’s market in decades. The actual number of homes sold increased 7 percent year on year. More houses would sell if more houses were available.
Demand for ranch land and vineyards has increased, but supply in these categories is still sufficient. Grape prices rebounded somewhat as the smoke raid on the north coast reduced the overhang of the mass market. These larger deals for buyers are great value for money.
In the commercial real estate sector, multi-family and rental properties are still in high demand. Retail and hotel properties in the city center are dormant for health reasons. The vacation rental market is still strong despite our friends in Sacramento serial shutdowns.
I would like to pay tribute to our city guides here in Paso Robles. These people have mastered external elements of the chaos and COVID challenges with calm and clarity. We have a good thing in North County, and there will always be those who want to tear our town down. Our police are great. Security is the main quality of life issue and we have security.
At the end of December, our customers are busy and so are we. Our market will weaken as values in urban markets begin to fall. We’re an inbound market, and our values are a bit behind San Francisco and Los Angeles. Urban values have not fallen, but rents have fallen in areas of urban decay.
North County is a citizen-governed community and faces many challenges in the years to come. Our wine and hospitality industries are world class.
Politically and financially, our church has grown because many have failed. We have natural resources that are rich and accessible. We will see strong buyer demand in the first quarter. This is an optimal market moment for sellers.