According to a new report by the California Association of Realtors, the average price to buy a home in California has reached a new high of $900,000.
“I’m surprised it’s at that because I thought it was higher and in Morro Bay it's almost obscene the price of houses. I couldn’t afford to live here if I didn’t buy my house 15 years ago. That’s the way it is,” said Paul Vinson, Morro Bay resident.
The average price to buy a home in Morro Bay is around $950,000, according to Navigators Real Estate in Morro Bay.
Paul Vinson bought two homes in Morro Bay, both averaging around $600,000, when he moved here 15 years ago.
“Our house is appraised for over $1.2 million, or $1.3 million and some of these houses here, it’s unbelievable,” Vinson said.
Alice Frawley, a real estate broker in Morro Bay, says her clients range from 40 to 70 years old and most buy in cash with no loans.
“The buyers now want a property that’s already been renovated, remodeled and fresh, ready to go. Not too many people looking for a fixer-upper these days,” Frawley said.
Vinson says he sees the effects of the high home prices.
“We don’t have young families. Very few of them can afford to live here,” Vinson said.
Gary Mulholland purchased a home in Cayucos five years ago.
“I bought for $650,000," he said. "The same house now is worth $1.3 million or $1.4 million depending on what you look at. I mean, that’s a big jump from where it was,” Mulholland said.
Frawley says the market exploded during the COVID-19 pandemic.
“Since then it’s slowed down, which is nice, but I’m noticing places are staying on the market longer, taking longer to sell, especially those that have not been renovated,” Frawley said.
She says she’s been seeing a lot of people from out of state as well as the Bay Area looking to buy on the Central Coast.
“Whereas before, it tended to be closer to here,” Frawley said.
The United States Federal Reserve said this week that the U.S. Central Bank will keep rates at their current levels for now as inflation continues to take a toll on American spending.
