The hills are green, the sun is shining and the beaches are ready for you here on the beautiful Central Coast!
Spring is in full bloom, which means the homebuying season is blooming as well… or is it?
Join us as we bring you up-to-speed as share the latest trends and predictions for the real estate market here in SLO County and offer some perspective when it comes to mortgage rates and home values!
Housing Inventory for the Central Coast
For April, we saw 283 new properties brought to market in SLO County. This is up 6% from April 2023, which is good trend towards a more normal inventory level of between 500-550 new listings for the month. This low inventory is due in a large part to the lock-in effect, where many homeowners don’t want to give up their low mortgage rates for a new, higher rate.
“Each drop in rates, no matter how small, makes a difference, Realtor.com noted: For every half-percent drop in the mortgage rate, the monthly payment for the typical home falls by $120, which translates to a buyer saving $43,000 over the life of the 30-year mortgage. If rates fall below 6%, 40% of respondents said they would buy a home in the coming year. Most economists expect the 30-year to finish the year in the 6% range. If rates fall below 5%, a majority of respondents, 72%, said they would buy a home in the next 12 months. One expert also noted that if rates were to fall to 5%, that would “unfreeze” the housing market and encourage more homeowners to sell.
Further drops only encouraged more respondents to consider buying: A fall in the 30-year rate to below 4% would push 90% of the respondents to buy the home.
To be clear, 88.5% of homeowners in the U.S. have a mortgage rate below 6%, according to analysis by real-estate brokerage Redfin. And 59.4% – six in 10 homeowners – have a rate below 4%.” – www.morningstar.com
Active listings have ticked up slightly with 557 current active listings. This is a good sign for homebuyers and home sellers who are selling contingent on find a replacement home in the County. This number is still off the normal level of active listings of around 1,100-1,200.
“My team has tackled this low inventory problem by being even more proactive with finding off-market and pre-market homes for our clients. This requires extra effort, but is important in today’s housing climate to deliver value.”
– Joshua Farris, Broker Associate. Cal dre #01921964
Demand
For the County, the median days on market for a new listing is 10, down from 14 days a month ago. This is quite the contrast to a more normal 25-30 days on market. The the City of SLO continues being one of the most in-demand cities at 9 days on the market (median) along with Morro Bay at 8 days on market. We continue to see high demand in North County, with Paso Robles and Atascadero accounting for over 50% of closed sales in the County.
Showings to contract remain low as well, indicating motivated buyers. On average expect 6-8 showings before you receive an offer. This is great as a seller… but challenging when you are a buyer, so make sure you are prepared to view homes right away once they reach the market.
“Our advice for sellers who are selling next month: take the time now to do any updates like painting, mulch, pressure washing, window washing, or deep cleaning. You will be glad you did and your home will sell faster and be better received by home shoppers. Reach out to consult our team for top tips for selling.”
– Joshua Farris, Broker Associate. Cal dre #01921964
Closed Sales
Closed sales are up from last year which is great and signals a trend towards more normalized housing market, however we are still down when we compare to previous years. We expect closed sales to rise as interest rates lower which may happen later in the year.
Home Values
Considering the Central Coast is such a desirable area to live and there is historically such low inventory, we see values remaining strong. We see year-over-year increases for the cities in SLO County overall, but nothing like 2020-2021. We expect values to level out for the rest of the year. We don’t expect values to decrease unless there is a flood of new inventory…which is not on the horizon anytime soon.
If you are curious to know what your home is worth in today’s market, reach out and we can provide you with a hardcopy BPO (Broker Price Opinion) or email one free of charge.
Springtime, New Move?
We are seeing strong demand for homes here on the Central Coast and I don’t think that will change anytime soon! We have amazing weather, nature trails, the beach, one of the best wine regions in the world, and a wonderful community. If you are looking to relocation to the Central Coast to enjoy the lifestyle it has to offer, reach out and we will help you find the perfect home and property for your lifestyle.
If you are considering a move in 2024 into a house or property that better fits your lifestyle and stage in life, reach out to our award-winning team, we are here to partner with you and help guide you with all things real estate here on the Central Coast. Whether you are looking to buy your first home, upgrade your current home, invest, or maybe you want to downsize, we have you covered!
We have a consultative, value-first approach tailored to your needs, goals, and timeframes.
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