SUMMARYNot only did sales of single-family (stick-built) homes and median home sale prices decline, a seller also took considerably more time to sell a home in Arroyo Grande. When we compare the home sales of first quarter of 2007 to the same period in 2006, we see a decrease of almost 9% in the single-residential home sales. At the same time, the median home price suffered an almost 24% drop, to $635,000. Compounding the situation further is the number of days needed to sell a home. Compared to 83 days during the first three months last year, the average marketing time has increased sharply by nearly 74% to 144 days, or nearly five months to sell a home in the first quarter this year. So, what’s selling in Arroyo Grande? As of April 19, 2007, 219 single-family homes (stick-built type) are for sale in the city of Arroyo Grande. Prices start at $349,000 for traditional homes and climb upwards to over $3,000,000 for ranches with acreage. Two huge ranches are offered at $3,499,000 and $3,950,000 respectively. One unusual property at 2,090 acres is being offered at $7,950,000. Another 61 single-family homes are in escrow as of April 19, 2007. The highest number that’s presently in escrow are those in the $500,000-$549,999. Out of the 61 properties, 14 of them are in this price range. The next best selling group of properties are in the $550,000-$599,999 (7 homes), and $750,000-799,999 (7 homes), followed by $450,000-499,999 (5 homes). The remaining homes are randomly found in the other price ranges.
Will home sale prices continue to decrease in Arroyo Grande? Like other cities with larger inventory of homes for sale, and fewer ready buyers, the downtrend is likely, and not surprising, considering the sharp appreciation in property values over the past few years in this city. |