It looks like a pepper forming. However, my thought is that it is so late to start peppers, as they are heat-loving vegetables. I'm not familiar with temps in your zone at this time of year, but normally in our zone 10, Sunset Zone 23-24, pepper seeds would normally be planted in Apr, May and June.

My ancho and poblano types are still trying to turn completely red. One plant that looks like a Christmas tree has multiple small 1 inch size hot peppers that are in yellow, orange and red - all doing nicely.

Yes - then, I think your little plant is producing fruit, but it may take some time for it to grow to full size.

Also, in warm climates, peppers can become perennial.

Bejay

I planted the pepper seed when the daytime temperatures were in the low 100s/upper 90s (that was in September)

now, the daytime temperatures have been in the low 80s/upper 70s with nighttime temperatures in the low 70s/high 60s.

two weeks ago the daytime temperatures were averaging mid to upper 80s.

isn't this warm enough for peppers?

the temperatures will go lower... December-March should have daytime temperatures in the lower 70s/upper 60s with nighttime temperatures in the mid to upper 50s/lower 60s.

Then in the middle of march it should start getting hot again with daytime temps back to an average 80F.

Your temperatures sound good to me. No I don't think you bonsaied it. Maybe just a fluke that it bloomed so early. We had a very hot summer here with several days in the 100's and upper 90's. The pepper plants were the only plants that didn't seem to really mind it. They drooped from the heat, but recovered when the sun got cooler.

Ameera, it's very normal for pepper plants of that size to develop flower buds -- when garden centers here in the northern United States sell them in the spring at roughly that size, many varieties of peppers will have buds on them. When they get just a bit larger, it's not unusual to see them in pots with small peppers on them.

However, most gardeners choose to remove these early buds to allow the plant to grow larger before they begin to bear -- in the end, I think you'll get a bigger crop if you remove the first buds and encourage the plant to grow more foliage first.

I think it will do OK, although I would plant the seedlings out in your "spring-like" weather, so that when the fruit is near eating size it will have the hottest weather to ripen with.

My cool summer climate makes it difficult to ripen peppers and tomatoes well - but they do eventually. But it would be best to have those rascals near full size when you go into the heat. That is why I advised planting them in cooler weather in your climate zone.

You need to take a good look at the next tomato plant you grow. After the flower has been pollinated, you will see a tiny, perfectly formed tomato begin to develop. Those embryonic tomatoes and peppers have all of the cells they will ever have at that point....they (the cells) will simply begin to enlarge.

So you are not noticing anything new at all....but simply observing, for the first time, something that has occurred all along.

I realize you live in a very dry climate but to me, it looks like the soil is too wet. That would also explain the slow growth and stunting. Maybe cut back on watering a bit.

thanks for all the advice everyone.

I pinched off all the buds and will pot it up in a 7 gallon pot tomorrow :)

as for the soil, I usually take photos right after watering so that is why the soil looks so moist...but I will be putting a thin wooden stick in the soil in the final pot to check the moisture level so I don't over-do it with water. ;)