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 with a goal of helping you and your friends/family make the most informed decision when it comes to home buying, selling, and investing here on the Central Coast of California.
Pending Sales Down
We have seen pending sales in SLO County down 35% YoY with June pending sales at 157 vs 244 in June of 2023. This is similar to the gap between June and May of this year, with May 2024 pending sales relatively strong at 247. This pull-back in buyer demand is largely due to high interest rates and high prices and may be a signal that we are seeing a market shift in coming months.
“Pending home sales posted their biggest decline since February during the four weeks ending June 30. The good news for prospective buyers: There are more new listings to choose from, and monthly housing payments are down nearly $100 from their April peak as mortgage rates decline.” Redfin.com
The indicators point to lower interest rates in Q4 of this year and as we enter into 2025. This will help revitalizes some of the understandably lackluster home buyer demand we are seeing.
“With an increase of housing inventory and a pull back in buyer demand, leading to a slump in pending sales, now may be a great time as a buyer to gear up for home shopping in Q3 and 4 of this year. There is less competition among buyers, more houses for sale, and fewer multiple offer situations, all leading to sellers more open to seller concessions and price negotiations. In other words, don’t want until interest rates drop and you have to compete with other buyers like in 2021 and 2022.”
– Joshua Farris, Real Estate Advisor | Broker Associate. Cal dre #01921964
Housing Inventory, a Market Shift?
We are seeing more active listings here in SLO County coupled with fewer pending sales. This has lead to an increase of housing inventory Month’s Supply, which is one of the leading indicators in housing. As we see the uptick in this statistic, we will most likely see a slight pull back in home values in coming months, or at least a market shift from a strong seller’s market to a more neutral market. We are still below historic numbers for Month’s Supply, which have been around 4.5-5 for SLO County.
We will keep an eye on this metric in coming months and how it correlates to a cooling of the housing market. We don’t think there is any cause for concern at this moment, considering we are not at an elevated historical level, just trending towards a more normal market.
“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.” NAR.REALTOR
Home Values & Price Per SQFT Trends
Considering the Central Coast is such a desirable area to live and there is historically such low inventory, we see values remaining relatively strong. Typically, June represents the strongest month for price per sqft when selling a house… however, for 2024 it looks like May was that month. With the increase in inventory, elevated mortgage rates, and high prices, we are not surprised to see this pull back for June.
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.
Summertime, Making a Move?
We are still 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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“Josh was wonderful! He was always available to answer my questions and guide me through the paperwork. He was thoughtful and patient with me. I would recommend Joshua to anyone who is buying or selling a home.” – Ronald Miller
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