2nd Quarter 2017

(January-June)

Five Cities

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

The Five Cities area of San Luis Obispo County represents the region with the highest median home price. Three of five of the cities that make up the Five Cities area are ranked amongst the cities with the highest median home price when comparing all the cities in San Luis Obispo County. It also represented the area with the highest price per square foot. The median home price is usually correlated with price per square foot, meaning the high median home price is usually paired with a high price per square foot. Homes in the Five Cities area on average spend a total of 83 days on the market, making the Five Cities the area that also has the highest average cumulative days on market out of any other region of San Luis Obispo County.

Five Cities 2nd Quarter 2017 vs. 2nd Quarter 2016

  • 335 Total Home Sales (2017) vs. 297 (2016)
  • $722,250 Median Home Price (2017) vs. $643,790 (2016)
  • 98% Sales vs. List Price (2017) vs. 97.42% (2016)
  • $698.19 Price per Square Foot (2017) vs. $427.15 (2016)
  • 83 Cumulative Days on the Market vs. 83 (2016)

All factors of the housing market tracked in the Five Cities area improved from the second quarter of 2016 to the second quarter of the current year, 2017. This with the exception of cumulative days on market which remained the same at 83 total days.

Total Number of Sales

The sales mix above shows a healthy housing market that has improved since the first two quarters of last year, 2016. Distressed sales last year totaled 9, this year there were only 3 in the months of January-June. The total number of sales in the Five Cities area increased from 297 total sales in the first two quarters of 2016 to 335 total sales in 2017. Arroyo Grande led the way in total homes sold in the Five Cities area with a total of 147 home sales, up from just 62 in the first quarter for an increase that over doubles the first home sales quarter data. Grover Beach followed in second place with a total of 97 home sales; Grover Beach also had the most amount of foreclosures at the low amount of just 2 distressed sales. Avila Beach had by far the least amount of sales at only 7 total homes sold from January to June of 2017. With the exception of Oceano, total homes sales increased substantially, over double, what they were in the first quarter. Oceano, being the outlier of this trend only added an additional 2 homes sold in the second quarter.

Grover Beach is the only city in the Five Cities area that shows a consistent increase in total homes sold over the past three years, 2015 -2017, suggesting that the housing market in Grover Beach is growing as more buyers are purchasing homes in this city. With the exception of Pismo Beach, which decreased in 2016 from its levels in 2015, but then recovered to a three year high of 60 total homes sold in 2017, all other cities in the Five Cities area of the Central Coast, total home sales data had higher levels of homes sold in previous two years: 2015 or 2016 than in the current year of 2017. The cities of Oceano and Pismo Beach both show higher levels of sales in 2015, then appear to drop in total sales for second quarter’s number of sales in 2016. Then from 2016, they both increase in sales in the current year of 2017. Pismo Beach’s total number of homes sold recovered to a level above 2015’s total, from 2016’s low. Oceano’s total homes sold, never recovered to 2015 levels highs when total homes sold reached 26, with its 2017 second quarter data of total homes sold being slightly lower at 24 homes sold. Arroyo Grande ad Avila Beach show total home sales being at their highest point in the first two quarters of the past 3 years in 2016.Total number of homes sold in these two cities dropped slightly from 2016 to 2017’s data; with Arroyo Grande only dropping by 2 total homes which is not a significant drop relative to total homes sold which was at 148 in 2016 and dropped to 146 in 2017. Avila Beach, the other city to decrease in total homes sold from 2016 to 2017, dropped by a total of five sales from last year at this time, this drop relative to the market size was a more substantial change. Total homes sold dropped from 12 down to almost half in 2017 to a total of only 7 homes sold in the first 2 quarters of 2017, the lowest level in the past three years and lowest total of any of the cities in the Five Cities area.

Median Home Price

Avila Beach, having the lowest amount of sales in the Five Cities area sold a total of only 7 homes in the first 6 months of 2017, it also had the highest median home price. This suggests that the high median home price is deterring home buyers from buying homes in this city, as it is the least affordable of all the cities in the Five Cities area. Up from the first quarter’s median home price of $758,001, Avila Beach had the largest change in median home price from the first quarter to the second quarter in the Five Cities increased over $250,000. Pismo Beach originally leading the way in median home price in the first quarter, dropped down to second place as its median home price decreased, from a median home price of $1,025,000 to $971,750. Sales in Pismo Beach had a significant increase from only 9 total sales in the first quarter (January – March) to a cumulative 60 sales from January to June the second quarter. Oceano not only has the lowest median home price out of all the cities in the area, but also accounts for the second to lowest amount of home sales, at only 24 total sales for the combined first and second quarter. Because of Oceano’s low price and low amount of sales, we can assume that Oceano is not a very desirable place to live, with only 24 total sales in the first 6 months of the year, the low median home prices appear to not be enough to entice buyer to purchase homes in this city. The second quarter proved to be an especially hard quarter for sales in Oceano as the months April-June; the second quarter alone added only 2 homes to the 2017 yearly total. Oceano’s median home price did increase by about $50,000 from the first quarter of 2017 to the second; this change suggests the two homes sold in the second quarter of 2017 were more expensive than homes sold in the first quarter by enough to bring the median home price up approximately $50,000. Grover Beach and Pismo Beach are the only two cities in the Five Cities area to decrease in median home price from the median set in the first quarter. These two cities also had two of the largest changes to total number of sales with Arroyo Grande more than doubling adding 82 home sales to first quarter’s total homes sold of 62. Pismo Beach increased its sales by over six times the first quarter’s total  of only 9 homes sold .The total homes sold in the second quarter  increased by 51 sales to 60 total homes sold in the first half of the current year.

With the exception of Arroyo Grande and Avila Beach, the majority of the cities in the Five Cities area have increased on a yearly rate over the past three years. Arroyo Grande and Avila Beach are the only cities in the area to have any year on year decrease, both dropping in price from 2015 to 2016. The median home price of Arroyo Grande in the first two quarters of the year decreased from $666,500 to $623,500 in 2016. Both cities did increase from 2016 to 2017, making the 2015 to 2016 drops the only decrease in median home price in the Five Cities area over the past 3 years. Arroyo Grande’s median home price almost recovered from the 2016 median home price drop, increasing to $665,500 in 2017, but still remained an average of $1,500 below the top price set in 2015. Avila Beach, the only other city to have a decrease in the past three years to median home price, has also been the most expensive city in not only the Five Cities area but all of San Luis Obispo County. It declined in price by almost $6,000 from 2015 to 2016, they surged up about $150,000 this year (2017) in the first two quarters. This increase is the largest year on year change.

Sales vs. Listing Price

Both Avila Beach and Pismo Beach being the two most expensive cities in the Five Cities area ,they both had the same sales to list price in the first two quarters of the year .This percentage of 97% is the lowest percentage of sales to list price in the area. These lower percentages for the more expensive cities hint that home buyers purchasing homes in these cities are offering the least amount of the list price in the Five Cities area. Oceano and Grover Beach both ranked highest for their sales to list price percentage; home buyers in these two cities are paying 99% of what a home is listed for. These two cities, Grover Beach and Oceano also are the least expensive in the area with Oceano being the least expensive followed by Grover Beach. Both the sales vs. list price and median home price are highly correlated in this area. Home buyers are willing to pay the most of the list price in the areas with the lowest median home price.

Price Per Square Foot

Pismo and Avila Beach towns remained the top two most expensive cities with the highest price per square foot. Pismo Beach’s price per square foot dropped from the first quarter by about $1,000 a square foot, but it still remains significantly higher than all the other cities including Avila Beach the second most expensive city per square foot and the city with the highest median home price. A sale in the first quarter of the year must have skewed Pismo Beach’s data for price per square foot as it has been extremely high in the two quarters of this year so far, especially when compared to other year’s data. Arroyo Grande dropped in price per square foot by only $1.66, this slight dip in price dropped Arroyo Grande to the least expensive price per square in the Five Cities area. Arroyo Grande with its mid-level median home price and lowest price per square foot is the best value in the Five Cities area. Homes in Arroyo Grande must be bigger in both Grover Beach and Oceano since their median home price is below that of Arroyo Grande’s yet they have a higher price per square foot.

Cumulative Days On Market

Homes in Avila Beach, the most expensive city in the area, sit on the market for the longest amount of time. The cumulative days on market for a home for sale in Avila Beach is one of two cities in the Five  Cities region to increase in cumulative days on market from the first quarter to the second. Pismo Beach, the city with the second most expensive median home price is the other city in the area to increase in cumulative days on market. Avila Beach not only increased in days on market, but houses in Avila remain on the market for over double the amount of time a home sits on the market in Arroyo Grande, the city with the second most cumulative days in the area. The three other cities that make up the rest of the Five Cities area decreased in days that they sat on the market for from first quarter’s data to second quarter’s data.