May’s Market Update

Average Days on Market – SLO County – Single Family Homes
This is trending downward, as buyer demand has remained strong but the inventory of homes one the market remains low. As of May 2016 average days on market was 51 days!

 

 

Average Sale Price – SLO County – Single Family Homes

This continues to trend upward, low interest rates, low inventory, and growing buyer demand continues to push prices upward. As of May 2016 average sales price for single family homes in SLO county has risen to $620,745! Up 13.3% year over year!

 

 

Inventory Months Supply – SLO County – Single Family Homes

This continues to trend downward as people are seeing solid appreciation in values and their equity increasing and many are staying in there homes longer. As of May 2016 there is only 3.5 months of inventory of homes for sale, this is down 28.6% year over year! THIS IS A COMPLETE SELLER’S MARKET RIGHT NOW!

 

 
Months of inventory are often referenced when determining whether it’s a seller’s market or a buyer’s market:

  • If there are 0-4 months of inventory, meaning that all current listings can expect to be sold within 4 months, it is considered a seller’s market because houses are selling very quickly. In a seller’s market, sellers have the advantage because demand for property exceeds supply.
  • If there are 5-8 months of inventory, it is considered a balanced market. Current listings aren’t selling like hotcakes, but they’re not staying on the market too long either.
  • If there are 9 or more months of inventory, it is considered a buyer’s market because houses are selling slowly. In a buyer’s market, buyers have more negotiating power than sellers do because the supply of listings exceeds the current demand for housing.

These timelines are approximate, but it is generally accepted that fewer than 6 months of inventory reflects good conditions for sellers whereas greater than 6 months of inventory represents optimum conditions for buyers.

My team and I are here to help you get from where you are to where you want to go. If you are thinking about buying or selling in this market give me call, text, or shoot me an email and I’ll walk you through the process and get you on the right path to a successful sale for your home and get you into your next home. We’ll do all the hard work so you don’t have to.

Experienced, innovative, & exceptional service here when you need it most.

 
 
Want to know more about what’s happening in your specific area and how it affects the value of your home? Click here or below!

SLO Home Values

How To Search Homes For Sale in San Luis Obispo

Here’s a quick video of how to search homes for sale in San Luis Obispo and all over California. You can find homes for sale, condos, lots, land, and just about every real estate listing that is currently on the market and in the various MLS systems across California. The listing data is updated multiple times daily and the most accurate info available. Neither Zillow or Trulia have this much timely accurate information on their sites. If you have any questions or need any help let me know, I am always here.

Is It Time to Downsize, Even in a Seller’s Market?

SAN LUIS OBISPO SELLER MARKET

A study by Edelman Berland reveals that 33% of homeowners who are contemplating selling their house in the near future are planning to scale down. Let’s look at a few reasons why this might make sense for many homeowners, as the majority of the country including San Luis Obispo and Santa Barbara Counties are currently experiencing a seller’s market.

In a recent blog, Dave Ramsey, the financial guru, highlighted the advantages of selling your current house and downsizing into a smaller home that better serves your current needs. Ramsey explains three potential financial advantages to downsizing:

  1. A smaller home means less space, but it also means less time, stress and money spent on upkeep.
  2. Let’s assume you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1–1.6 million in the bank to get you through your golden years.
  3. Use the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed rate mortgage and put at least 10–20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Realtor.com also addressed downsizing in a recent article. They suggest that you ask yourself some questions before deciding if downsizing is right for you and your family. Here are two of their questions followed by their answers (in italics) and some additional information that could help. 

Q: What kind of lifestyle do I want after I downsize?

A: “For some folks, it’s a matter of living a simpler life focused on family. Some might want to cross off travel destinations on their bucket lists. Some might want a low-maintenance community with high-end upgrades and social events. Decide what you want to achieve from your move first, and you’ll be able to better narrow down your housing options.”

Comments: Many homeowners are taking the profit from the sale of their current home and splitting it in order to put down payments on a smaller home in their current location, as well as a vacation/retirement home where they plan to live when they retire.

This allows them to lock in the home price and mortgage interest rate at today’s values. This makes sense financially as both home prices and interest rates are projected to rise.

Q: Have I built up enough equity in my current home to make a profit?

A: “For most homeowners, the answer is yes. This is if they’ve held on to their properties long enough to have positive equity that will be sizable enough to put a large down payment on their next home.”

Comments: A study by Fannie Mae revealed that only 37% of Americans believe that they have significant equity (> 20%) in their current home. In actuality, CoreLogic’s latest Equity Report revealed that 72.6% have greater than 20% equity. That equity could enable you to build the life you’ve always dreamt about. 

Bottom Line

If you are debating downsizing your home and want to evaluate the options you currently have, let me know so that I can help guide you through the process to your next home.

April’s Market Update

Here’s your San Luis Obispo city house price market update. This graph shows median sales price  for single family homes in San Luis Obispo. You can see that trend line steadily climbing since February, and going even higher in April, and likely May.


Below is San Luis Obispo County House Price Trend Line


 

Every city here on the Central Coast, every neighborhood, and every home is unique in relation to every other. How to properly assess and calculate the current value vs market value is a detailed and complex process when it comes home property valuations. Do you want to know more about what’s happening in your specific area and how it affects the value of your home? CLICK HERE OR BELOW!

SLO Home Values

Thinking about selling? Now may be the best time!

 

Top 10 Luxury Homes For Sale in San Luis Obispo, CA

We picked out the top 10 luxury homes for sale in San Luis Obispo, Ca! From Modern Farmhouse to Classic European to Vintage Spanish Style Homes these properties have it all. From Downtown SLO living to peaceful country acreage, you’re sure to fall in love with these homes. Check out how the elite of San Luis Obispo live and who’s looking to sell!

 

#1 – 951 Pasatiempo DriveSan Luis Obispo, CA 93405 | Listed Price $3,250,000

951 Pasatiempo Dr San Luis Obispo

 

#2 – 4950 Davenport Creek RoadSan Luis Obispo, CA 93401 | Listed Price $2,850,000

Davenport Creek San Luis Obispo Home

 

#3 – 1650 Harmony WaySan Luis Obispo, CA 93401 | Listed Price $2,699,000

Harmony Way San Luis Obispo Home

 

#4 – 6970 Canada VistaSan Luis Obispo, CA 93401 | Listed Price $2,495,000

Edna Valley Home For Sale

 

#5 – 672 Oakridge DriveSan Luis Obispo, CA 93405 – Listed Price $2,395,000

Oakridge Drive San Luis Obispo Home

 

#6 – 550 BassiSan Luis Obispo, CA 93401 – $2,325,000

Bassi Ranch San Luis Obispo Home

 

#7 – 7175 Paseo VinedoSan Luis Obispo, CA 93401 – $2,295,000

Paseo Vinedo San Luis Obispo Home

 

#8 – 875 GreystoneSan Luis Obispo, CA 93401 | Listed Price $1,995,000

Greystone San Luis Obispo Country Club

 

#9 – 1190 Bassi DriveSan Luis Obispo, CA 93405 | Listed Price $1,999,000

Bassi San Luis Obispo Home

 

#10 – 1443 Osos StreetSan Luis Obispo, CA 93401 | Listed Price $1,845,000

Osos St Downtown San Luis Obispo Home

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

6 San Luis Obispo County High Schools Receive Top Rankings

Morro Bay real estate

Six San Luis Obispo County public high schools received silver medals in U.S. News and World Report’s annual assessment released Wednesday.

The magazine evaluated data on more than 21,000 schools, weighing their performance on state assessments, how well they serve disadvantaged students, their graduation rates and how well they prepare students for college.

From that total, it identified 6,218 schools as gold, silver or bronze medal winners, ranking them according to a College Readiness Index based on students’ rate of participation and success at passing Advanced Placement tests. The top 500 ranked schools nationwide received gold medals. The next 2,173 received silver medals. And an additional 3,545 earned bronze medals. California has 683 ranked high schools.

Arroyo Grande High School placed the highest locally, ranking No. 170 in California and No. 1,032 nationwide.

It was followed by San Luis Obispo High School (No. 221 and No. 1,262, respectively), Templeton High School (No. 279 and No. 1,555), Coast Union High School (No. 430 and No. 2,278), Paso Robles High School (No. 449 and No. 2,345) and Morro Bay High School(No. 475 and No. 2,492).

Central Coast New Tech High School in Nipomo earned a bronze medal but wasn’t ranked.

Atascadero and Nipomo high schools were unranked locally.

The report named the School for the Talented and Gifted in Dallas, Texas, as the best in the country. Whitney High School in Cerritos was named the No. 1 high school in California.

For more information on the school rankings and to see detailed breakdowns on local high schools, visit www.usnews.com/education/best-high-schools.

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!

Have you been thinking of Selling? The Market Needs Your Listing!

SearchingForHome-SLO

The Santa Barbara and San Luis Obispo counties real estate markets are really heating up and buyer demand is dramatically increasing as we enter the spring season. However, one challenge to the current market is the major shortage of inventory. Below are a few comments made in the last month by industry experts.

Lawrence Yun, Chief Economist of NAR

“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau.”

Jonathan Smoke, Chief Economist of Realtor.com

“Low inventories and tight credit will limit the gains we will see in 2016. However, given the level of pent-up demand evident in web activity and stated buyer intentions for 2016, we should see this spring materialize as the busiest season of sales since 2006.”

Rick Sharga, Ten-X’s EVP

“Inventory is too low to support much higher sales. There’s virtually no inventory available at the entry level, and single family housing starts and permits continue to languish at levels far below where they should be at this point of the recovery.”

David Crowe, Chief Economist of the National Assoc. of Home Builders

“Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.”

Freddie Mac

“Challenges remain, with low housing supply and declining affordability being a key concern in many markets.”

 

If you have have been thinking of selling your central coast home my team I would love the opportunity to earn not only your trust and business but your friendship as well. We are committed to serving you and this community.

We look forward to hearing from you!