San Luis Obispo and National Housing Inventory Disappearing

San Luis Obispo Housing Inventory

The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report which gives insight into today’s market conditions nationwide.

Inventory Levels & Demand

Sales of existing homes rose 5.1% month-over-month in March and are 1.5% higher than this time last year. Sales rose in all four major regions in March.

Total unsold housing inventory is 1.5% lower than March 2015 at a 4.5-month supply and remains well below the six months that is needed for a historically normal market.

Consumer confidence is at the highest level in over a decade. Pair that with interest rates still below 4%, programs available for down payments as low as 3%, and you have an attractive market for buyers.

Homes sold in March were on the market for an average of 47 days and 42% of properties sold in less than a month.

Prices Rising

March marked the 49th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $210,700 (up 5.7% from 2015).

So What Does This Mean?

The chart below shows the impact that inventory levels have on home prices.

Housing Supply SLO

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:

“Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures.”

Bottom Line

If you are debating putting your home on the market in 2016, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Let me know if you are ready and we can get the process started.

 

The Ultimate San Luis Obispo Seller’s Checklist

Here’s pretty much everything that you need to consider and be mindful of before we put your San Luis Obispo home on the market. If you want top dollar for your property it’s crucial that we present your property in the best possible light and in the best possible condition. If you need help with referrals for contractors or any other local central coast service people let me know and I can help you with that as well.

Remember we can only make one first impression with buyers, why not make the best most attractive first impression possible?

If you are ready to get started let me know and I can guide you through this entire process, my team and I are here to help and get you to where you and family want to go.

San Luis Obispo Real Estate

San Luis Obispo Home Prices Are Up…But There is a Challenge

San Luis Obispo home values

Home values continue to climb and are projected to increase by about 5% over the next twelve months here in San Luis Obispo. That is good news for anyone who owns a home. However, it could present a challenge for a family trying to sell their house.

If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the sales price when performing the appraisal for the bank.

The National Association of Realtors (NAR) recently released information revealing just how prominent the challenge is in today’s market.

SLO real estate

And the challenge is deepening…
Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.

Central coast homes

As we can see the difference has increased each of the last two months.

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be more difficult than the first. If you are planning on putting your San Luis Obispo home on the market this year, I am here to guide you through this process, and effectively deal with any other obstacles that may arise. That’s what I am here for!

HOW’S THE MARKET? SAN LUIS OBISPO MARCH MARKET UPDATE

real_estate_market_tagcloud

How’s the market? How many times have you asked a Realtor that question? Probably more times than you can remember, right?

As a local San Luis Obispo Realtor I get asked that question more than 50 times a week. What most people don’t realize is how broad that question is and that we, Realtors, can’t properly give you the educated answer unless you tell us more about what you mean by that. Do you mean the California state market, the regional Central Coast market, the San Luis Obispo and Santa Barbara county markets, the Pismo Beach market, or how’s the market for your specific property that you are looking to sell?

So next time you get to that place where you’re about to drop my favorite line, think to yourself what is it that you really want to know, so that I can give you what it is you really want to know. My goal is always to help you be informed, educated, and confident in your decision to buy, sell, or hold onto your current home or investment property.

If you are still curious about how the market is, here are some stats from March 2016 here in the city of San Luis Obispo for Single Family Homes.


 

Median Days on Market | 31 days | Down from Feb. 2016

Ave. Days on Market | 54 days | Down from Feb. 2016

Ave. Sales Price | $826,938 | Up from Feb. 2016

Median Sales Price | $707,750 | Up from Feb. 2106

Inventory | 40 New Listings | Up from Feb. 2016


 

THE WRAP UP

Homes sold faster and at higher prices despite there being more inventory for sale last month here in the city San Luis Obispo. All signs are pointing to a seller’s market and a highly competitive environment for buyers.

Interest rates remain at historical lows (under 4%) so if this is the right time for you and your family to look at buying a home make sure you are prepared by having your loan qualification and closing funds in place and ready to go.

For a free no obligation consultation you can call/text me at 805.776.3313 or email me at RenierADresser@me.com

Renier Dresser Photo