County real estate agents said housing costs have leveled off
and the cost of buying a home has increased about 7 percent from
the previous year.
County real estate agents said housing costs have leveled off and the cost of buying a home has increased about 7 percent from the previous year.
The median price for a home in Hollister was $375,000 in 2002, up from $350,000 in 2001 while the average price during the fall of last year was $423,000, an increase from $399,000 in 2001.
Ray Pierce, a real estate broker for Coldwell Banker, said the market has been slow for the past three weeks because of the holidays, but that houses are basically at the same price they were a year ago.
“The prices have not really changed,” he said. “The market is holding.”
Pierce, however, said he recently sold a five-area parcel for $448,000.
“With no house on it,” he said. “It was just the land.”
Baumgartner Realty owner David Baumgartner said prices have leveled off and though the economy was in a lull, the new year may show promise.
“We started off with a bang,” he said. “But then I’m always optimistic, but I still think this is going to be a good year.”
Statewide, home prices increased 18.2 percent increase from 2001, with the San Diego area leading the way with a 27-percent increase. The rest of the Southern California region saw a 21-percent jump, while the San Francisco Bay area posted a 13 percent increase.
According to statewide statistics released this week by DataQuick Information Systems, the cost of a median home in California was up from $236,000 in November 2001 to $279,000 in November 2002.
Despite the grim economic forecasts, low mortgage rates are keeping the market alive.
“The housing market is still strong, things are moving, and with the lower interest rates, more people can afford to buy,” Baumgartner said.
In San Juan Bautista and Tres Pinos, the average cost of housing is a little higher than Hollister.
“That’s because these areas generally have more acreage. Anything with five acres or more will go for $600,000 to $700,000,” said Vince Brown, owner and agent of Vince Brown Real Estate in San Juan Bautista.
Brown said there was not turnaround in San Juan. Currently, there are about 13 homes on the market, which includes the San Juan Canyon and area’s next to Aromas, he said.
“There is a five-acre parcel with a small house going for $540,000,” he said. “Even with the lower interest rates, I can’t figure out how they (average person) can afford it.”
With the lowest interest rates in 40 years, Pierce said it will bring the prices back up.
In 2001 a house in the city limits took an average of 78 days to sell, Pierce said.
“This year is 57 days,” he said
However, the most drastic change in the housing market occurred in North County. The median home price and the average home sold in 2001 was $770,000 and turned over in 38 days while for 2002 there was a drastic reduction. The average and median price fell to $410,000 and sat on the market for 123 days.
“It is a strange market,” Pierce said.
“Based on existing sales, the forecast shows market costs will have about a 2-percent increase,” said Baumgartner, who recently attended the California Realtors Association convention. “It will be better than last year.”
