Coming Soon in Arroyo Grande. A stunning 4 bedroom, 3 bath, single level home located in the gated community of Bayview Estates. Immaculately maintained with an attention to detail that is evident upon arrival. The beautifully manicured front yard, double insulated garage doors with wood façade and Knotty Alder custom double slab entry door with custom ironwork made locally in San Luis Obispo, set the tone for what's to follow. Hardwood floors throughout the living areas including the remodeled gourmet kitchen with solid granite counters, updated cabinetry and under the counter wine fridge. Recently upgraded family room fireplace with natural stone wall and hearth. Enjoy the view of the adjoining 5 acre park from the covered patio, bar area or firepit or watch the sunset from the hot tub. Plenty of room for your gardening ideas, including raised beds and several fruit trees. Great location near Cypress Ridge Golf Course and just minutes to the beach.
As we take a look at our most recent statistics, they’re very similar to what we’ve been seeing lately. Our inventory has decreased by about 50% from a year ago, and generally, October through December are lower inventory times anyway, so the season will exacerbate our inventory issue. However, pending sales have risen 31%, so as we head into the holiday season, this will likely be the best holiday market I’ve ever seen because we have increased demand but a decreased supply. This is excellent for sellers.
Of course, this is affecting prices; we’re beginning to see challenges with appraisers because they can’t always justify the price a home is sold for. The number of homes coming onto the market has dropped by about 50%; last October we had about 200 homes, while this October we only had 106. This is going to be a strong market for a while.
We can tell how different sellers are going to experience this real estate market by how long houses are staying on the market. Certain properties will sell very quickly; we have an average days on market of 30 . That means some homes are selling in four or five days, and some are taking two months. A few of the reasons some houses aren’t selling as quickly are because of the condition, floor plan (single-levels are more in demand than two-levels), less usable yard space, location, or price. So not everyone is benefiting the same way from this hot market; the home will sell, but some take a bit longer if there’s less demand for it.
"This will likely be the best holiday market I’ve ever seen."
We’re currently seeing a massive influx of first-time buyers, and I credit that to the very low interest rates. If you look at the rental prices right now, they’re so much higher than what you would pay to own a home. Those considering buying will be shocked by what they can afford.
If you’re thinking about buying, I recommend three things: 1. Find a stellar real estate agent to help you with the process 2. Connect with a great lender and get pre-approved 3. Start looking at houses
I suggest doing these things in this order because the right agent will help you find which lenders will provide the best service. They’ll also help you figure out where to look and what options you have so you can find the ideal property for you. This is an opportune time to get into the marketplace because you have exceptionally low rates, and prices are only going to rise.
If you have any questions or you’re considering buying for the first time, give us a call or send an email. We would love to help you. We also appreciate the fantastic referrals you’ve sent our way, so thank you!
Rare single level 3 bedroom 2 bath home located behind the gates of the San Luis Bay Estates in Pelican Point. Featuring vaulted ceilings, hardwood flooring throughout, and large picture windows to let in the natural light. The spacious great room featuring a fireplace with marble hearth and access to the back patio offers an ease of movement between the dining area with access to a second covered patio area and the kitchen with breakfast nook, great for entertaining. The owner's suite features a walk-in, cedar lined closet and sliding glass door access to a small patio with walkway to the back patio. The 2 additional bedrooms share access to the guest bath featuring a luxurious jacuzzi tub. Awesome end unit location provides a private and peaceful atmosphere to enjoy the natural surroundings. Ample storage in the 2 car attached garage plus a separate golf cart garage. Enjoy hiking and biking trails that lead to beach, the Bob Jones Trail, the Avila Bay Athletic Club and the Avila Golf course. Ideal opportunity for a vacation home or why not live the Avila Beach lifestyle full time?
As we move through October, what do the latest numbers say about our San Luis Obispo real estate market? Is there anything that can cause our market to shift moving forward?
I know I sound like a broken record, but I once more have to report that inventory is down. In September, it dropped 45% year over year. Pending sales also rose once more, this time to the tune of 18% year over year. Additionally, the number of escrows closed rose 40%, which marks the first time in 2020 we saw more sales than a year ago. In other words, closings have finally caught up to the number of pending sales and everything else that’s happened these past few months. Finally, the number of new listings dropped 30% year over year. Overall, there’s a lot of energy in our economy that’s coming from real estate.
This means we’re about to see a lot more of the same from our market. We’re taking homes off the market at twice the pace that they’re being listed. If we stopped listing homes altogether, we’d have a 45-day supply left. During the Great Recession, it wasn’t uncommon to have a seven or eight-month supply of homes. The difference is unbelievable. On top of that, interest rates are still incredibly low. A friend of mine recently refinanced their home at a rate of 2.69% with no additional costs.
None of us have a crystal ball, but one thing that could alter the state of our market is a change in inventory, which would then affect home prices. For example, many people experiencing financial hardship due to the coronavirus may have no choice but to list their home. Or, many people may be nervous about the prospect of listing their home due to safety concerns. The biggest factor that could impact inventory, though, is the number of new homes that have been approved and are under construction. If this number is big enough, it could make our market look a little more normal. However, this change still would take at least three or four months.
If you’d like to talk more about our San Luis Obispo market or have any real estate needs at all, don’t hesitate to call, email, or stop by my office (we’ll provide the masks). I look forward to hearing from you.
Thanks to your support, we are on our track to have our best year ever in this confusing 2020. A lot of that has to do with your referrals, and a lot of it has to do with the marketplace. This leads me to our market update today.
A lot of people have been asking me about our market lately and why it’s so strong. We don’t have all the answers, but we know a few for sure. The No. 1 reason for our market’s strength is interest rates. We have clients that are locking in 30-year loans at 2.75%. Some are getting them even lower.
What does this mean if you’re a buyer? You could be finding a house you love at an interest rate and monthly payment that you’ll never see again. If you’re a seller, the strong demand allows you to move up, move down, etc. The buyer will be able to afford more, which makes your home more valuable. When rates go back up, that will affect home values negatively.
More people are working from home these days and trying to get away from the city. If you know someone from the Bay Area or L.A. who is looking for a change of scenery, you now know why.
Here’s the best example I can give you about the opportunity in this market. We had a client who sold a property and had to buy another for tax purposes. They were looking for rental properties to purchase and couldn’t find anything online. However, I remembered that I knew someone who was talking about selling their rental property. I showed the buyer the property once, they loved it, and bought it.
If you’re thinking of moving or know someone who is, there hasn’t been a much better time than this and we can use our vast resources and knowledge of this market to help you find opportunities you may not have with another team. We’ve done this for so long that we take it for granted, but we have solutions to help anyone in any situation buy, sell, or invest in real estate.
If you have any questions for me about this market or about real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
Enjoy panoramic views of the surrounding hills from virtually every room in this beautiful 3 bedroom 2.5 bath custom mission style home. Situated on a secluded street with only 3 neighboring properties and surrounded by mature oak and fruit trees, provides a quiet country atmosphere yet just minutes to town. Beautiful courtyard entrance featuring sautillo tiles, wisteria covered pergola and several seating areas nestled under the oaks. Attention to detail is evident throughout with high end finishes including open beamed ceilings, solid white oak flooring, a custom over-sized front door, fireplace, wainscoting and large picture windows showcasing the great views. The kitchen features solid granite counters, stainless appliances and overlooks the dining area with access to the side deck providing additional outdoor living area ideal for dinning al fresco while enjoying the beautiful, reflective sunsets. The main level features most of the living area including the master suite with french door access to the courtyard, the living room, dining area, kitchen and family room that could be 4th bedroom. The lower level features 2 guest rooms, guest bath, a bonus room and french door access to the back patio with spa, horse shoe pit and plenty of room for gardening and other outdoor projects. The lower level could easily be transformed into a separate guest/granny unit or possible rental.
Impressive contemporary, ultra modern, single level home showcasing open concept living at it's finest. Featuring 3 spacious bedrooms, 2 baths, 2552 sq ft of living space with top of the line finishes including tile flooring, crown molding, 8' doors, Caesar stone counters, Hunter Douglas sheer blinds, just to name a few. The gourmet kitchen includes Thermador appliances, custom cabinets, Butler's pantry and a center island over looking the great room. The 3 sets of sliding glass doors lead to the 500 sq ft courtyard with built in out door kitchen and multiple seating areas making it the ideal venue for entertaining. From the courtyard, a path leads to the orchard with apple, apricot, plum, fig, avocado, kiwi, guava, passion fruit trees, citrus including lemon, orange, mandarin, blood orange trees plus blackberries and grapes. Several spots in the orchard to sit and enjoy the mountain views and surrounding nature. Located on one of the most coveted streets in San Luis Obsipo, at the end of the cul-de-sac offering a private sanctuary just minutes to downtown restaurants and shopping.
Great downtown location along the creek with a main house featuring a 2 bedroom, 2.5 bath main house with a detached guest unit. The 1775 sq ft main house features wood floors throughout, the main level which includes the living room with fireplace, built in book cases and French door access to the back patio overlooking the creek. Arched entrance into the dining room with built in buffet, wainscoting and another arched entrance into the well appointed kitchen with French door access to the deck and pathway to the creek. The upper level features the guest room, guest bath and the spacious master suite with walk in shower with glass block enclosure. The 2 car attached garage offers ample room for storage. The 609 sq ft guest unit has a separate address and is situated over an additional 2 car garage and features a kitchen, bath, living room and loft. Great investment opportunity only steps to downtown San Luis Obispo!
Stunning 3 bedroom, 4 bath luxury condo featuring Craftsman Style architecture set among oak covered hills with great views of Avila Beach. End unit with only 1 shared wall located at the end of the street with no through traffic. Beautifully appointed with top of the line amenities including hardwood and stone flooring through out, French doors, tank-less hot water heater, and wood cased windows offering views form every room. The main living area features a gourmet kitchen with Wolff range and granite slab counters, the dining room with access to the balcony, the living room with floor to ceiling stone fireplace, wet bar and access to the balcony, plus an office/den and full bath. The upper level features the guest rooms, guest bath, a private sauna and the luxurious master suite showcasing a peninsula fireplace, sitting room private balcony with ocean views and spa-like master bath with walk-in steam shower and jacuzzi tub. The ground level features the laundry room and spacious 2 car garage with 3/4 bath, ideal for after a long day at the beach. The 10 unit complex provides a resort like atmosphere with beautiful landscaping, a pool, spa, waterfall and private gate access to walk or bike to the beach. Wonderful opportunity for a vacation or 2nd home, or why not live the Avila Beach lifestyle year round, with great hiking, biking trails, golf and course the Beach!
There’s no denying that our market is red hot. This month, we find our inventory down roughly 38% year over year. Last month it was down 30%, so we’re witnessing a definite tightening of the market, which I’ve already touched on in previous videos.
Meanwhile, our sales are up 16%. 360 homes went under contract in the county this month, but only 180 new listings. So again, no matter how you slice it, fewer homes coming on the market and more homes going into escrow is squeezing our market. Though there are a few homes lingering in certain price ranges, most are selling quickly right now.
How should we interpret all this? Well, if inventory continues to shrink, there will be greater upward pressure on home prices. Unless we get a flood of new homes for sale, or buyer demand drops off abruptly, we’ll likely have a strong market through at least the end of this calendar year. Beyond that point, it gets significantly harder to see.
Keep in mind, however, that things can shift very quickly. After all, this market went from being soft and quiet at the onset of COVID-19 to absolutely explosive once summer rolled around.
COVID hasn’t gone anywhere obviously, and in today’s ever-changing environment, having the right mortgage professional in your corner is invaluable. Here’s a recent example: A buyer working with an out-of-state lender had to wait a full month for the qualification process to be completed—well beyond the 17-day contingency removal we were supposed to have. Though the lender was doing their best, they had to be the bearer of bad news for a buyer who had already waited 30 days: Sorry—the buyer didn’t even qualify! Yikes…
We ended up taking that buyer’s lending package to a trusted local lender and, in just two days flat, the loan was approved. They also signed the documents allowing us to close within eight or nine days. Not all service providers are created equal; we know who’s able to provide excellent, timely service in our marketplace, and when it’s crunch time for our clients, we get those folks involved in the process so everyone can have a seamless transaction.
In summary, our market is strong and will continue to be so, but working exclusively with experts has never been more important than it is right now. As always, reach out if you have questions on the market’s course, the lending process, or anything else pertaining to real estate. I look forward to hearing from you and being of service!