Local real estate agents say people from the Bay Area and Southern California are often out-bidding local first-time home buyers and they're using cash to do so.
According to the San Luis Obispo Coastal Association of Realtors, the median price of a home in San Luis Obispo County as of April was just under $850,000. The current median in California is $904,000, up 11% from this time last year.
For Paso Robles resident Diane Jenks, the cost of property in the area is too high and she’s having a hard time finding decently-priced home insurance.
“We've actually taken our look elsewhere into other states," Jenks said. "We're looking at property in Utah right now. It seems to be much easier than California.”
Homes in North County run slightly less than San Luis Obispo. Paso Robles has a median price of just under $800,000, Templeton is at $886,000, and Atascadero is in the high $800,000s to low $900,000s.
“The number one reason why people move these days is because of family and grandchildren," Century 21 Real Estate Agent Joanna Nowinski said. "Since COVID, everyone wants to be closer together as a family unit."
Insurance policies are the biggest driver of what Nowinski is calling a seller’s market. She's seen homeowners get dropped from their policy once a claim is filed. Bigger companies aren’t offering new plans, giving those moving to the area an upper hand.
“A lot of them have cash," Nowinski commented. "That makes it very competitive to our local people, especially first-time home buyers. They're very much squeezed in this market. It's very hard.”
Nowinski says the biggest issue with buying a home is that there just aren't enough available. According to the National Association of Realtors, a $197,100 household income is needed to afford a median-priced home in the state of California.
“Every state is suffering with the same shortage of inventory and we are just not building enough and not fast enough," Nowinski said of the current climate. "A lot of people that have current homes and would like to move, they don't want to give up the interest rates that they have right now."
“[Paso Robles] is home," Jenks said. "My family's here. I have old parents, so I'll be here for a little while. When it is time to purchase, we're not probably going to purchase here. “
