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.
Housing Inventory for the Central Coast
For May, we saw 277 new properties brought to market in SLO County. This is down -9.2% when we compare it to May of 2023. Even though we have had a decrease in new listings in May, active listings available on the market is up 15% Year-Over-Year with a total of 595. This is a trend that we are seeing throughout the U.S Housing Market, with housing inventory levels increasing.
“For a housing recovery to occur, several conditions must unfold.
“For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.” FORBES.COM
This uptick in active listings is movement towards a more normalized market, and it may come with some slight softening in prices… which we have seen already. Don’t forget to take it in context, we are still at historically low levels of homes available for sale here on the Central Coast.
“My team has tackled this lower 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 to our clientele.”
– Joshua Farris, Real Estate Advisor | Broker Associate. Cal dre #01921964
Housing Demand
For the County, the median days on market for a new listing is 12, up from 8 days on market back in May of 2023, which is a 50% increase. This is still 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 12 days on the market (median) along with Arroyo Grande at 8 days on market. We continue to see high demand in North County, with Paso Robles and Atascadero accounting for over 60% of closed sales in the County.
Showings to contract remain low as well, indicating motivated buyers. If you are selling a house on the Central Coast, on average expect 9-11 showings before you accept an offer. This is a slight uptick from last month, which is still low all things considered and shows a strong demand for homes in the area.
“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 Home Sales for May 2024
The closed property sales are down 18% when compared to last year in May, with total closed sales of 228 for the Central Coast. This damper has been due to the lack of mortgage rate reductions many expected earlier this year. What does this mean? It means that some home shoppers have decided to stay on the sidelines and are waiting for mortgage rates to reduce and home prices to soften. While we do expect some slight reductions if mortgage rates remain elevated as we anticipate, we don’t see any major price decreases here on the Central Coast for the future. In fact, if mortgage rates decrease significantly we may see another price jump for homes.
My advice to home buyers; Take advantage of this time and make offers while there is more inventory and less competition. You may be able to secure a better negotiation on an incredible home that you might not be able to once rates reduce and competition heats up!
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.
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.
Learn more about our process here: OUR PROCESS
“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
Real Value • Real Results • Real Simple.
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