It's the old law of supply and demand.
In Merced County, a lack of houses and a growing demand has pushed prices
to record highs.
The California Association of Realtors released figures for October
that show the average price for a home in the county is $255,500 - up more
than 27 percent from the same time last year, when the average price was
$200,000.
Atwater helped fuel the higher prices, with the average home there going
for $255,000.
But Los Ba�os led the county in pricey homes. It takes more than $300,000
to buy the average house in that city of 32,000, and the reason is simple:
"It's the people coming from across the hill," said Tom Kaljian,
a Coldwell Banker real estate broker.
Kaljian has been a broker for 30 years, and said the home prices in the
San Jose area send more and more people to the Los Ba�os area to buy.
Commuters from Los Ba�os to the Silicon Valley number 7,000 to 10,000 a
day, depending on who's doing the figuring.
They affect the home prices in a big way, experts say.
"We can build and offer homes at a much cheaper price than across the
hill," Kaljian said.
The California Association of Realtors study showed that homes in Santa
Clara County averaged $547,000 in October, with cities like Los Altos
and Los Gatos averaging $1,264,250 and $902,500, respectively.
Because of the demand for Westside homes, Dos Palos also is seeing a boom,
Kaljian said. A lot of new construction is going on in the little town,
and, because the prices are a little cheaper than Los Ba�os, those homes
are being snatched up, he said.
But the Westside isn't the only area seeing a surge in home prices and
construction. Atwater's prices, higher than Merced's, show that the town
is becoming more popular with buyers.
Robin Blake, a Realtor with Atwater-Merced Realty, said a lot of
new homes are going up in the Atwater area. In fact, there are more new
homes per capita in Atwater than Merced, he said, with houses sprouting
up around the Rancho Del Rey golf course and Shaffer Lakes.
Blake and other real estate agents agree that investors are driving the
high home prices. Blake said people from out of town come looking for
multifamily units in Merced, but because there is a shortage of those
units, they turn to single-family residences.
Andy Krotik, a Realtor with Coldwell Banker in Atwater and an
Atwater city councilman, said a lean market in the area has made housing
a scarce commodity.
"There are some new subdivisions coming in that might give buyers some
relief," he said.
But, he added, prices probably aren't going to come down any time soon.
In Merced, investors also are sending prices through the roof.
Violet Torres, president of the Merced County Association of
Realtors, said the majority of people buying houses in the $200,000 to
$325,000 range are from out of town.
"They are selling property in the Bay Area, and buying anywhere from two
to four properties here for the same price," Torres said.
A lack of affordable housing has made it difficult for many local
homeowners to upgrade, Torres said. With only one home on the
multiple-listing tour this week, buyers often end up bidding for homes,
and sellers end up getting more than their asking prices.
"People who want to sell their small homes and buy bigger ones are
finding there just aren't any homes out there for sale," Torres said.
However, the newest subdivisions being approved and built could ease
the problem, Torres said.
"Right now, people are fighting over homes," she said. "It's just crazy."
