5 Reasons To Sell Your San Luis Obispo Home This Summer

san luis obispo home

5 Reasons To Sell Your San Luis Obispo Home This Summer

As the temperature rises, buyers are coming out ready to purchase their dream homes. The summer is a great time to list your home for sale. Here are five reasons why:

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market at 4.7-months.

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this summer.

Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae just announced that they anticipate an acceleration in home sales that will surpass 2007’s pace by late summer. As the market heats up, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler.

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to increase by nearly a full percentage point in the next 12 months.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

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

10 Reasons Why You Should Consider Buying A San Luis Obispo Home

10 Reasons Why You Should Consider Buying A San Luis Obispo Home

San Luis Obispo Home Ownership

 

  • Paying rent is not a good investment, but owning is a great way to start building family wealth.
  • Not only does homeownership allow you to provide your children with great education, but you can also decide whether or not your child grows up with a pet.
  • Owning a home provides you with tax benefits while also providing you with more living space to move around in.

 

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!

 

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.