Even with home prices continuing to slide in the entire United States, San Luis Obispo, California’s housing market is getting help staying stable due to a relatively lower unemployment rate, a fewer amount of subprime loans and a stability in public-sector jobs.
During the month of July 2009, sales of homes were up 8.7% when compared with numbers from the previous year. San Luis Obispo’s sales of homes were up while the price of homes in many other cities like San Francisco and Los Angeles fell around 15%. Home prices in other parts of the state fell drastically with Monterey County home prices falling around 29% and home prices in Santa Barbara County falling around 22.7%.
The fact that San Luis Obispo has many high-end properties that were not financed by subprime mortgage loans is a major reason why the area has not been hit with a large number of foreclosures and short sales.
While the recession in the market hasn’t hit much of the area, there are parts of San Luis Obispo were homeowners have become distressed, such as Paso Robles and Arroyo Grande.
A large contributing factor to the relative stability is the strong public-sector which until now has remained stable. This could change now with the tightening of the state budget. If funding is cut drastically in the public-sector, local unemployment numbers will rise rapidly.
There is a good chance that the housing market in San Luis Obispo will stay stable whether or not the job market takes a big hit due to the fact that the wine industry in continuing to grow and tourism stays strong due to the wineries and beaches.
San Luis Obispo, California is also a magnet for retirees who are looking for homes near Morro Bay, which is located a mere 14 miles from the city.
Home sales are still not as active as they were during the boom, but San Luis Obispo does have some activity in its housing market and it remains much more stable than many other cities in the United States.
I believe that San Luis Obispo is very stable now because there are many people investing in them. They have many beautiful and high end properties. Their homes are always favorite of different kinds of people; from young couples to retirees.