During February of last year, 14 homes were sold in San Luis Obispo County, whereas this year 23 homes were sold - nearly double, according to the San Luis Obispo Association of Realtors.

The Davies Company Real Estate, a real estate agency that has been in San Luis Obispo since 1975, explains the spike in homes sales locally.

"There are many reasons for the spike in home sales in San Luis Obispo County," says Dawna Davies of Davies Company "Financing and interest rates are the best we’ve seen since the 1960’s, and government incentives as well as home affordability are enticing buyers. Also, lenders are motivated to sell and get money back on loans, so there are more homes available on the market for sale than ever before."

Despite lower home prices, enticing financial options and more homes to choose from than ever – the average number of days on the market is significantly longer than it was last year.

According to the San Luis Obispo Association of Realtors, the average number of days on the market was 74 days in February of last year. This year the average is 133 days on the market.

"In a declining market like we have now, sellers are willing to take longer to sell and try to get the most for their property," explains Dawna Davies "However, I’ve seen homes that took too long to sell fall almost 20 percent in value. That is why agents need to help their clients determine the right price for the current market."

According to the 2009 Survey of California Homebuyers, housing affordability improved dramatically over the past year as a result of the downward movement in home prices and declining mortgage interest rates.

The survey states that affordability will likely remain high, as home prices are not expected to increase significantly in the near future. This will benefit many homebuyers, particularly first-time buyers, as they capitalize on the decline in prices and on the bargain offered through distressed properties and tax credits.

Davies Company has more than 65 years combined experience in real estate investment and property management.

With a local, state and national knowledge of the market, they can help clients with anything from property analysis, financing, tax-deferred exchanges and an abundance of other real estate strategies, some rarely used.

For more information, visit DaviesCo.com.