2016 4th Quarter Central Coast Real Estate Update: Five Cities

The Five Cities regional real estate overview includes data for the four quarters (January-December) that made up the year of 2016. The markets in the following cities make up the Five Cities area of San Luis Obispo County:

  • Arroyo Grande
  • Avila Beach
  • Grover Beach
  • Oceano
  • Pismo Beach

The Five Cities area of the Central Coast is the most expensive region on the Central Coast with the largest overall median home price. It also contains the city with the largest median home price out of any city in San Luis Obispo County or the surrounding areas. The city with the largest median home price in 2016 was Avila Beach with a median home price of $915,000; that is $360,000 above the SLO County average and just short of $250,000 above the Five Cities median home price.

  • 629 Total Home Sales (2016) vs. 588 (2015)
  • $672,385 Median Home Price (2016) vs. $638,190 (2015)
  • 51% Average of Selling Price per List Price (2016) vs. 97.46% (2015)
  • $419.65 Average Price per Square Foot (2016) vs. $389.14 (2015)
  • 4 Cumulative Days on Market (2016) vs. 67.6 (2015)

All aspects of the real estate report in the Five Cities area improved in 2016 from the year prior 2015, with the exception of the cumulative days a home sits on the market, which increased by about 15 days from year 2015 to year 2016. This means markets in the Five Cities area are moving at a slower pace in 2016 than in 2015 and homes are sitting on the market for a longer amount of time. All other aspects of the real estate report improved on the year including: total number of homes sold, median home price and selling price per a listing price. Most of these improvements were trivial with an increase of 41 total homes sold, an increase of $34,195 to the average median home price, the average price per square foot increased by $30.51 a square from 2015,and  lastly, the sales price per the listing price increased by 5%. Though these increases are relatively small it does show that the Five Cities’ market is healthy and improving from 2015, the year prior.


Total # of Sales

2016 4th quarter five cities total sales

Total number of sales in the Five Cities area came to a grand total 629 overall sales for the year of 2016. The city of Arroyo Grande has by most amounts of sales in the area with 304 total sales that makes up almost half of the total amount of sales in the entire Five Cities area, making it by far the city with the largest market in the Five Cities area. Grover Beach is just below 50%of the total number of sales of Arroyo Grande; Grover Beach is the city with the second largest amount of sales in the Five Cities area. Avila Beach had an underwhelming total number of sales at only 18 sales in 2016. However, Avila Beach is also the single most expensive city on the entire Central Coast and surrounding areas, suggesting that because of the high median price of a home in Avila this is resulting in a smaller market with less traffic, and less sales as buyers may not be able to afford such an expensive city.


 

Median Home Price

 2016 4th quarter five cities median home price

The median home price in the Five Cities area averaged $672,385 at the year end of 2016. This is the largest median home price out of the four other counties on the Central Coast we cover in our real estate reports. Avila Beach leads the pack with a high median home price of $915,000, that is $360,000 above the SLO County average and makes Avila Beach the most expensive city to purchase a home on the Central Coast. The average median home price for the Five Cities area is being pulled up by the high home prices reflected in the graph for Avila Beach and Pismo Beach. Unlike, what we’ve seen in other areas and regions across the Central Coast that we have analyzed, there appears to be little to no relationship between total number of sales and median home price, meaning home price has less effect on home sales than in other areas on the Central Coast.


Median Home Price Change 2015 vs. 2016

2016 4th quarter 2015 vs 2016 home price

 

The above table displays the median home price change from the year end of 2015 to the year end of 2016. All five cities that make up the area increased in median home price, with the exception of Arroyo Grande which declined by approximately 4%. The largest change in median home price can be seen in Oceano. Though, it still remains the city with the lowest median home price it had an increase of 13.28% change from 2015 to 2016 for the largest positive change seen out of all the cities on the Central Coast. This suggests Oceano has the fastest increasing median home price out of all of SLO County. Pismo Beach followed closely behind Oceano’s 13.28% increase with a 13.09% increase.


Sales Price vs. List Price

 2016 4th quarter five cities sales v. list price

The percentage in which a homeowner is willing to pay for a home in the Five Cities area averaged 97.51% of the listing price in the year of 2016. The only two cities below the SLO County average of 98.05% and the Five Cities average of 97.51% were Avila Beach and Pismo Beach. These also happen to have the highest median home prices out of all the other cities in the Five Cities area. This indicates that for the most part the percentage of sales price per a list price a buyer pays is correlated to the median home price. The higher the median home price the lower the percentage a home is sold for vs what is listed on the market for.


Price Per a Square Foot

2016 4th quarter five cities price per square foot

The average price per square foot for a home in the Five Cities area of the Central Coast for the year of 2016 was $419.65; this is up from 2015’s price of $389.14. This is also above the SLO County average of $342.14 per square foot meaning homes per square foot are slightly more valuable than the average SLO County home. It’s no surprise Avila Beach had the highest price per square foot, as it also has the highest median home price. Though Arroyo Grande had a much higher median home price its price per square foot is not much more than Grover Beach and Oceano, the two cities with the lowest median home price. The three cities: Arroyo Grande, Grover Beach, and Oceano vary in price per square foot by less than $15. Arroyo Grande’s median home price, however, is over $100,000 more than Grover Beach’s median home price and over $200,000 greater than Oceano’s median home. This is an indication that due to the comparatively low price per square foot, yet comparatively high median home price in Arroyo Grande, homes in Arroyo Grande are larger with more square footage than the average SLO County home. The large amount of square footage of a home in Arroyo Grande is offsetting the low price per square foot resulting in a higher median home price.


Cumulative Days on Market

2016 4th quarter five cities cumulative days on market

The average cumulative days a home sits on the market in the Five Cities area is a total of 82.4 days, this is about 15 days more than the average in 2015. It is above the SLO County average of 68 days, this may be due to the higher than average median home prices in the Five Cities area. Avila Beach, being the most expensive city in the area with the highest median home price, also spends the most amount of days on the market at 173, this is over double the amount of time a home sits on the market in Pismo Beach, the city with the second most cumulative days on market and the second most expensive city. Grover beach not only has the fastest moving market in the Five Cities area, but all of SLO County and its surrounding areas covered in these reports. A home in Grover Beach spends an average of only 40 days on the market before it is sold. This means homes in Grover Beach have the fastest market of all of the Central Coast and its surrounding areas. The average cumulative days for a home on the market in the Five Cities area of San Luis Obispo is getting lift from the large number days a home sits on the market in Avila Beach. Avila Beach homes typically sit on the market for about 173 days, which is far above any of the other numbers on the graph for the Five Cities area. Avila Beach is also the most expensive city of not only the Five Cities area, but the entire Central Coast and its surrounding cities. This suggests homes with higher median prices tend to sit on the market for a longer amount of time as they are less affordable.