November saw another strong month for sales here in SLO County and many desirable Central Coast homes and fine properties embrace proud new owners. We have had a decrease in new listings which has frustrated some buyers and sellers looking for a replacement property, so we are hopeful for new listings to pick up in 2024. We saw an increase of mortgage applications, which shows that more buyers are gearing up for a new purchase in the new year.
Let’s get started with the report.
New Listings in November
New listings brought to the market in November totaled 182, a 3.2% decrease from November of 2022. The Fall season is typically a slower season for real estate transactions compared to the Springtime buying and selling season, so it is no surprise that we see fewer listings. For buyers, this can be a good time to negotiate on the price of for sale houses, especially if a house has been on the market for a while.
As discussed in our October Housing Update video, this low inventory is largely due to the “lock-in effect,” where many would-be home sellers are locked in at a low mortgage rate and have difficulty justifying making a move and taking on a higher mortgage rate. This will continue to put a damper on new listings until we see rates lower which will encourage homeowners to put their house on the market here in SLO county. The Fed did signal that there may be up to 4 rate cuts in 2024, which could lead to more inventory coming to the market.
“With the Fed signaling a couple of rate cuts we could expect to see a real estate market pick up the likes of which we have not seen in a while. There are a lot of buyers waiting on the sidelines and many would-be sellers who have opted to wait until rates become more favorable.”
– Joshua Farris, Lead Broker with Joshua Farris Real Estate Advisors.
This low housing inventory, coupled with fairly high demand, has maintained a robust selling market in the county.
Days on Market
Days on Market for November 2023: 13
We have seen the median days on the market increase from October to November, going from 10 days on the market to 13 days on the market for the SLO county. This is a good indicator that we are still seeing strong demand for the limited inventory and a signal that we will most likely continue to see strong demand in the foreseeable future. The Days on Market for SLO County historically is around 30-35, so we are still historically low.
Serious home buyers need to act quickly when a home they like reaches the market to avoid missing out, especially if it is well-priced. We advise that home buyers are pre-approved and clearly understand their criteria before they start seriously shopping.
The current challenge for some sellers is finding a replacement property when selling. We advise our clients to focus on the process and stick to a strategy when buying a replacement property. Because there is limited inventory, having the right strategy can be critical to not miss out on the perfect replacement property, hence our seller strategy session is tailored to help you determine the best strategy for you.
Median Price Sold in November 2023
Atascadero: $710,000
San Luis Obispo: $1,080,000
Paso Robles: $740,950
Los Osos: $896,000
Arroyo Grande: $1,265,000
Grover Beach: $819,250
Nipomo: $684,900
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We continue to see strong sales stats for SLO City due to its desirable climate, recognition, and downtown. We see many out-of-the-area buyers who are looking to own a home in San Luis Obispo, which has driven up the value YoY. In 2023 we have seen consistent growth in values, but not to the extent we saw in 2022 with lower interest rates. If you are a homeowner and would like to see how much your house has increased in value since your purchase, please reach out for a “Professional Equity Analysis Report” and custom “Tailored-to-You Market Update.”
“The big question everyone is asking revolves around the mortgage rates and what they will do in 2024. If we see a significant decrease in rates we expect to see many buyers return to the market. We also expect more homeowners who have resisted selling in 2023 due to high rates put their house on the market, increasing the inventory of homes for sale.”
-Joshua Farris, Joshua Farris Real Estate Advisors.
Conclusion
When selling your house in November-December-January we suggest pricing your house accordingly for the current market and choosing a real estate team that knows how to correctly market your house. If you are selling your house in SLO County and purchasing a replacement property on the Central Coast, prepare accordingly to secure the new home to avoid disappointment. If you are a first-time home buyer, make sure to prepare by saving your downpayment, repairing your credit, and creating clear criteria.
If you are considering a move for the Spring of 2024, we invite you to start the conversation with us now so we can properly advise you and help you prepare for your move and sale.
We have successfully helped many families and investors on the Central Coast with their real estate needs, so if you would like to discuss your goals, please reach out.
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