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

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!

 

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