Affordable Housing

Paddle boarder at Shell Beach

This week's SLO Sunday Tribune features an article "High Housing Prices Lock Many Out of Ownership" stating that a buyer needs an income of at least $100,180 to afford a median priced ($487,500) home in SLO County.  A year ago, 37 percent of homebuyers in the county could afford a median priced home, now only 23 percent can. In spite of that, homes are selling so rapidly that the supply is severely limited.

The article is filled with interesting data, some of which will be listed below.  However, the important information for us here in Mesa Dunes is how this affects our thinking about the value of our homes, both before and after conversion. The primary driver in the change is the supply and demand for housing … right now there is more demand than supply.

South county tends to be more affordable than San Luis Obispo but it's location near the water and temperate climate keep it in the most desirable category.  Right now Oceano has a median price of $356,000 and Grover Beach's median is $382,900.

We've guesstimated that lot prices will fall in the $200,000 range.  With discounts for early purchase, prices could be closer to $175,000.  Add an average price of $100,000 for your coach and the average package price for a home in Mesa Dunes could be in the $275,000 range … or well under the median price range … especially when you consider the location and amenities of our park.  

Of course, if you have a greatly remodeled coach or extensive decking and a view, your home could be worth more, however, it would then compete with higher-end homes and still be attractive.

It's hard to imagine people buying properties in this price range, especially if our home was purchased many years ago.  However, while California real estate went down in 2008 when the building boom created a glut and the economy tanked throwing many people out of jobs and their homes, if I were going to put money on where prices would be ten or fifteen years from now, I wouldn't want to bet against the upward trend.

There are no guarantees in the world of real estate and investments, but this article makes it seem like Mesa Dunes will continue to be affordable housing even after conversion.

Today's Listings in Sunrise Terrace: (where the HOA is $175 per month)

Some people say that Mesa Dunes does not compare to Sunrise Terrace because their amenities are better.  They have lovely amenities and a beautiful club house.  However, if you haven't driven through it, I suggest doing so.  Somehow, it has a sun-baked feel to me and I much prefer Mesa Dunes.  Plus, it is an over-55 park, something I personally do not prefer.

374 Sunrise … $220,900 (with membership), 1440 square feet … probably 1970s unit

378 Sunrise … $174,500, 1440 square feet … probably 1970s unit.  This looks like a great deal.

816 Eaton … $265,000, 1640 square feet … upgraded

820 Innesley … $279,500, 1368 square feet

807 Muirfield … $295,000,  1440 square feet, remodeled and bonus room

350 Sunrise … $319,000, 1570 square feet, remodeled

251 Sunrise … $359,900,  1600 square feet