4 Reasons to Move Up to Your Dream San Luis Obispo Home This Spring

San Luis Obispo Real Estate Homes For Sale

 

Spring is in full force; the summer months are right around the corner. If you are debating moving up to your dream San Luis Obispo home, here are four great reasons to consider listing your current home and moving up to your dream home now, instead of waiting.

1. Buyer Demand is High & Inventory is Low
Recent numbers show that buyer demand is at the highest peak experienced in years, and inventory for sale is at a 4.5-month supply, which is still markedly lower than the 6 months needed for a historically normal market.

Demand in many markets is far exceeding the supply, and more properties in March sold in less than 30 days (42%) than in any month since last July.

Listing your home today can greatly increase exposure to buyers who are out in force and ready to act.

2. Prices Will Continue to Rise
CoreLogic recently released their latest Home Price Index in which they predict that national home values will appreciate by 5.3% by this time next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting for your current home’s value to increase before selling could price you out of your new home if you aren’t careful.

3. Mortgage Interest Rates Are Still Near Record Lows
Interest rates have remained below 4% for some time now and are substantially lower than the rate previous generations paid when getting a mortgage.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will rise over the next 12 months.

An increase in rates will impact YOUR monthly mortgage payment. Even an increase of half a percentage point can put a dent in your family’s net worth. Whether you are moving up or buying your first home, your housing expense will be more a year from now if a mortgage is necessary to purchase your home.

4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Have you always wanted to live in a certain neighborhood? Would a climate change be just what the doctor ordered? Would you like to be closer to your family?

Bottom Line

If the right thing for you and your family is to move up to the home of your dreams this year, buying sooner rather than later could lead to substantial savings. You may even consider one of the these luxurious homes currently on the market!

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.

 

How Important Is The List Price?

Central Coast List Price

In today’s market, where demand is outpacing supply in most cities here in San Luis Obispo and Santa Barbara counties, pricing a house is one of the biggest challenges we’ll face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best real estate agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered their price. His article, Listing Price, Time on Market and Ultimate Selling Price, published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Price Visibility Chart

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. I am here to simply and effectively explain what is happening in the your specific market and how it applies to your home. I am committed to telling you what you need to know rather than what you want to hear. This will put us in the best possible position for success in selling your home in today’s market.

Official Move Announcement

I know that I made you all wait, so here’s my official company move announcement! I am excited and proud to do so, it’s been a long process but like anything else, to do things properly it takes time, right? Thank for your support, patience, and I am always here if you need my help. I’ll be putting out more information out about new services and tools we can utilize to ensure your success in both buying and selling homes here on the central coast.

I look forward to working with you-