Interpreting Atascadero Real Estate Numbers: 2022, A Perspective

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If you have kept up with news regarding real estate happenings, the roller coaster of information available would make you wonder what to do next if a real estate transaction is in your immediate future. It may be helpful to take a historical statistical look back to understand how we ended 2022.

Due to personal choices and demographic flexibility, we saw residential home values increase from 2019 through 2022, allowing real gain in the market. Statistics comparing Atascadero sales from 2019 (pre-COVID), 2020, 2021, and 2022 clearly show an increase in three of the four years’ home sales numbers and appreciation of home values consistently in all four years.

In 2019, there were 429 homes sold with a median price of $512,000. For 2020, total sales were 460, with median sales at $550,000. Gaining momentum in 2021, home sales increased to 495, with a median sales price of $640,000. For 2022, taking a bit of a dip, there were 350 homes sold, but an increased median sales price of $750,000.

Nearby communities saw real market increases as well. Looking at Templeton, there were 181 homes sold in 2021 and a median price of $825,000. In 2022, Templeton had 93 home sales and a median sales price of $930,000. Paso Robles home sales were 821 in 2021 and a median sales price of $612,000. In 2022, Paso Robles had 589 home sales and a median price of $672,452. Clearly, Northern San Luis Obispo County, for 2021 showed the highest number of home sales, while 2022 continued the unprecedented increase in home values.

With the economy on everyone’s mind and inflation on the forefront, interest rates are being used to allay its detrimental effect. Working to help curb inflation, interest rates increased quickly in 2022, starting in

April and peaking in November. Clearly, interest rates have impacted the real estate market on the Central Coast as well as the U.S. Freddie Mac (freddiemac.com/pmms) shows the weekly U.S. 30-year Fixed Rate Mortgage on January 6, 2022, at 3.22 percent. By December 29, 2022, it had just about doubled to 6.42 percent. November interest rates were in the 7+ percent range when they peaked. Projections are that interest rates will drop throughout the year giving buyers more buying power.

The Central Coast’s appreciation in home values evidenced by sales dollars from 2020 through 2022, increased by an impressive 31.7 percent. Looking at the numbers annually, 2020 and 2021 saw appreciation of 4 percent and 17.7 percent, respectively. For 2022, appreciation was around 10 percent. There was a drop in appreciation in the third and fourth quarters of 2022 by single digits, but still ending with an overall positive appreciation of home values. When looking at historical data since 1978, records for San Luis Obispo County’s appreciation average 6.1 percent per year.

This includes downturns in the economy and the more recent 2007-2012 market recession — one that many people remember and are trying to compare the current environment to, which is not accurate. The 2007 market recession was brought on by poor lending practices, bad loans that spiraled out of control, and variable interest rates, amongst other things happening around the world. Since that time, new laws have been put into place to protect a borrower with stricter regulations to monitor lending practices. In addition, current foreclosures are at an all-time low; remember that value has been added to homes over the last few years, leaving many homeowners in a strong real estate equity position. Lastly, most recent home purchases have been made with a 30-year or 15-year fixed interest rate. This provides stability and reassurance that the monthly mortgage will not be changing for the life of the loan.

Looking ahead, the 2023 real estate market does not have the indicators of a crashing market; it is returning to a normal market. This means it may take 30 days, plus or minus, to sell a home, and both buyer and seller have the ability to negotiate a purchase price and terms.

Supply and demand will play a role in the sales forecast for 2023. The first week in January, Atascadero inventory has increased when comparing 2021 to 2022, from approximately 14 to 29 active homes on the market for the same time period. This increase is starting to give buyers more options when purchasing a home, but still a long way from previous years. With the positive equity gains for sellers and a strong buyer desire to relocate to the Central Coast, it is a great time to be a seller, but also opportunity for a buyer to establish themselves in the real estate market and put down roots.

Putting these figures into perspective is helpful when deciding to buy or sell a home. As most know, circumstances typically dictate when a real estate transaction needs to happen. Whether it is a new job, downsizing, changes in the family dynamic, retirement, or any other life-changing event, making a real estate move will likely be a consideration. Deciding to act on that consideration is then typically determined by whether or not the financials work. What makes sense and what is financially feasible certainly frame any real estate transaction or major move.

Remembering that our local real estate market does not follow urban patterns is also helpful. We are a niche market, flanked by the Bay Area to the north and LA to the south, with communities that have more to offer with respect to geographical beauty and quality of life while maintaining the convenience of being centrally located in the state of California. 

George Marrett

ECHO Founder, Author, Pilot, Veteran

By Camille DeVaul

When it comes to the Vietnam conflict and rescue missions operated there, you are sure to find the name George Marrett in the history books.

George is an aviator, writer, one of the founders of the El Camino Homeless Organization (ECHO), and one of the earliest members of the Estrella Warbird Museum. You can typically find him tellings jokes and introducing speakers at the Estrella Warbirds Museum at their monthly dinners. But on the rainy night of January 4, it was George's turn to tell his story.

& Bob

The Origin Story

Born in 1935 in Grand Island, Nebraska, George was 5 years old when the United States joined World War II and 10 years old when it ended. Along with most Americans at the time, his family lived with food and supply rations. He remembers helping his father raise and sell rabbit meat and hide to help their family survive the tight times.

"The war made a big effect on me," as he retells of planes flying overhead in his childhood during the second world war.

Living near an Army Air Corps base, George and his childhood friend played fighter and bomber pilots, re-enacting the war stories they heard over the radio.

"That got me interested in airplanes in that time period [of the war], right off the bat," says George as he goes on to explain his journey to later becoming a decorated United States Air Force officer.

George graduated from Iowa State College in 1957 with a BS in chemistry and then entered the United States Air Force (USAF) as a second lieutenant from the Reserve Officers Training Corps (ROTC). From there, he spent a few years in pilot and flight training at several Air Force bases (AFB) around the country. In 1964 he was selected to attend the USAF Test Pilot School at Edwards AFB where he flew the Northrop T-38 Talon, Lockheed F-104 Starfighter, and General Dynamics F-106 Delta Dart.

After graduation, he transferred to the Fighter Test Branch at Edwards for three years, where he tested the McDonnell F-4C Phantom, Northrop F-5A, and the General Dynamics F-111A Aardvark.

The Sandy Chapter

After some convincing, George went to Thailand to join the Vietnam conflict by flying the Douglas A-1 Skyraider as a "Sandy" rescue pilot in the 602nd Fighter Squadron. While there, he completed 188 combat missions, over 600 combat hours, and was awarded the Distinguished Flying Cross with two Oak Leaf Clusters and the Air Medal with eight Oak Leaf Clusters.

George's year of rescue missions in Southeast Asia was a formidable one. Twelve pilots in George's squadron were lost that year, two suffered from severe burns that sent them home, and 26 airplanes were lost.

Here, George recounts witnessing a pilot going down during one of his missions: "Suddenly, I see a parachute going to the tree and an airplane crashing into the ground — Now I am the only one left with two helicopters [who have] never been on a rescue. They have already shot down two airplanes. And that was the deer in the headlight that of all of my flying experience that was the one where I was just stunned."

For this downed pilot, George was told to turn around and resume the rescue mission the next day. That pilot ended up in a prisoner of war camp for five years before returning home.

George wrote the book "Cheating Death: Combat Air Rescues in Vietnam and Laos" to memorialize the men that were killed in his squadron.

"Rescue, I think, changed my outlook on life. Rescue is a big thing. It's American," George says of his year of rescue.

Homeless, Not Hopeless

When George retired from Hughes Aircraft in 1989, he couldn't let go of the rescuer he had become. Moving to Atascadero for retirement, he couldn't help but notice the homeless population there with no organization to help them.

"There are a lot of homeless veterans and there is just something about a veteran that is homeless and that just can't be," says George as he explains why he felt called to the homeless cause. "That rescue [in Southeast Asia] changed my life and outlook on things."

After years of working with the Atascadero Loaves and Fishes by expanding their services, the first Board of Directors for the soon-to-be ECHO was born, with George sitting as the group's first vice president. The journey to building ECHO into the organization it is today is recounted in George's latest self-published book. In it, he recounts their humble beginnings and the miracles their organization would soon foster.

One cannot possibly condense all of George's stories and life onto one page. But that is OK because George has written six books recounting the different chapters of his life. His experiences have impacted more than just himself and are ones that have gone down in history.

This February, George celebrates 65 years of marriage with his wife, Jan. Together they have two children, Randall and Scott, and four grandchildren, Tyler, Zachary, Cali, and Casey.

George has been inducted into the Nebraska Aviation Hall of Fame, received the USAF Test Pilot School Distinguished Alumnus award, and was inducted as a Fellow with the Society of Experimental Test Pilots. 