Team Sweasey's Real Estate Blog

Feb. 5, 2019

The San Luis Obispo County February 2019 Real Estate Market Update

We’ve just finished the first month of 2019. Today I have some interesting information to share with you about the San Luis Obispo real estate market, as well as an update on interest rates and a tip about contingent offers.

As for our market stats at the end of January, inventory is up by 13% from where it was last year. At the same time, closed sales are down about 23% from last year. We’re getting more activity and the market seems to have some energy, but pending home sales are also down about 33%. We’ve been talking about this shift for a while and we’re finally seeing it.

One of the reasons that I think the market is still so healthy and active is because of interest rates. A client who just went into escrow is getting a conventional loan for a 30-year fixed mortgage for 4.375%. That’s the best rate I’ve seen in five or six months, if not longer. When I talked to the lender, I found out that you can get an FHA loan for 3.75% for 30 years.

When most sellers hear the words “contingent offer,” they’re hesitant. However, in this market, offers like this are more valuable. You’re trying to sell your house and buyers have choices. If your home is on the market for sale and you receive a contingent offer from a buyer who already has their home in escrow, this means they’re motivated to find a home and much less likely to back out. Take a serious look at contingent offers like this.

Based on all the information we’re seeing, buyers and sellers can take advantage of this window in the market. We’re not sure how long it will last. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Jan. 8, 2019

A Look Back on the December 2018 Market

As we begin the new year, I wanted to bring you an update on exactly what’s happening in the real estate world. First, what’s going on in the general market?

As we look back at December of 2018, it occurs to us that our inventory increased about 10%, which is a familiar point to us. Our sales were down 25% from the year before. In December 2017, we had 219 closed escrows, where in December 2018, we had 164—just for fun, we looked back on that figure for 2016, where we had 270 closings, meaning that there was a 40% decrease over the next two years. Additionally, there were 630 active listings when we closed out 2018. This all seems to indicate that the market is stabilizing.

Next, how do new listings compare to new pending sales?

If we have a lot more pending sales than we have new listings, that means our listing inventory will go down. If we have fewer pendings than new listings, that means our inventory will probably rise. As I glanced across the board for Los Osos, I saw that we had four new pendings and 11 new listings, meaning that we’ll likely have more inventory there. In Pismo, there were six new pendings and 13 listings, indicating a likely increase in inventory there, as well. The same is true of Atascadero, where there were 12 new pendings and 33 new listings. For those who have been wondering and complaining about a lack of inventory over the past few years, guess what? We’re going to have more options to choose from in our market.

Lastly, what do expired listings look like?

Expired listings refer to those who have cancelled, withdrawn, or had their contracts expire and are no longer on the market for whatever reason. In December of 2018, we had 237 expired listings. One year previously, we had 93. That means that 73% more people took their homes off the market in December 2018 than in 2017. However, when we measured the active inventory for that period, it still came out to be 10% higher, despite the number of homes removed from the market.

So what is this all telling us?

Well, if you’re a seller, you’ve got to be ready. Price your home competitively and do everything you need to with regards to preparing your home for the market. For buyers, you’ll have more opportunities to get more house for your dollar. All in all, this shift in the market is completely normal; we’ve been through situations like these before.

If you have any questions about these market changes and how they affect you, feel free to reach out to us.

Jan. 3, 2019

Virtual Tour: 6950 Navarette Ave, Atascadero 93422

Virtual Tour: 6950 Navarette Ave, Atascadero 93422

Just listed in Atascadero. A charming single level 3 bedroom, 2 bath home situated on over a quarter of an acre. Featuring hardwood flooring, vaulted ceilings, newer carpet, windows and paint. Well maintained with a tranquil park like setting featuring multiple patio areas, a water feature, spa and professional landscaping. Located close to downtown Atascadero. $484,900.

Click here for more details.

Posted in Atacadero, Video Tour
Dec. 11, 2018

Your November Market Update for San Luis Obispo

As the year wraps up, we’d like to first thank you for all of your continued support. Our business would be impossible without all your help, and we are so very grateful to all of you. Secondly, we’ll share a quick update on the latest statistics from the San Luis Obispo real estate market.

As has been the case for the last several months, we saw an increase in inventory this November, as well as a little bit of a reduction in sales. Specifically, inventory has risen by 15% year over year, while closed sales were down by a little over 15% during that same period.

At the end of the day, there is still plenty of opportunity in our real estate market. Good buyers and sellers are still out there, just perhaps not in as great a volume as before.

So what does this mean if you’re looking to buy or sell? Ultimately, you should proceed as you would any other time. If you’re a buyer, one of the first steps you should take before beginning your home search is to partner with a strong local lender. You may know someone who offers this service but lives outside of our area, but the truth is that only professionals who live and work in the San Luis Obispo market will know how to get you the best possible deal. The same logic applies to real estate agents. Our team would be happy to serve you or put you in touch with professionals who can do so in your specific area.

The final thing we would like to share with you today is the fact that conforming loan limits are set to change on January 1, 2019, at which point the limit will be $484,300.  Last year, those with the most favorable rates enjoyed a limit of $417,000. As you can see, this means that the coming change is going to be quite a jump from where we are right now. Following the change, those interested in borrowing or refinancing will be able to secure a little more money for a slightly lower cost.

If you have any other questions or would like more information about anything we discussed today, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Nov. 13, 2018

What Should You Know About Our November Real Estate Market?

It’s time for another exciting real estate market update. Today I’m going to recap what we saw in October, compare it to what we’ve seen in the past, and talk about the upcoming holiday real estate market.

This past October, we saw about a 10% increase in the number of homes for sale from what we saw last year, as well as a 12% drop in sales. On a day-to-day basis, we are actually finding that the buyers and sellers that we’re seeing in this market are more serious than they usually are at other times of year. The people who have been testing the market have taken their homes off of it and we’re seeing a pretty normal market right now.

When we look back to 2010 in San Luis Obispo, we had 241 active listings. Right now, we have just 93. As for the average sale price, it was in the low 500,000 range eight years ago and it’s up to nearly 800,000 today. In Morro Bay, we currently have 39 active listings. We had 140 in October 2010. It’s fascinating to see how far we’ve come. People like to jump to conclusions about today’s market, but the truth is that we’re doing just fine.

Finally, I want to talk about the holiday real estate market. We have found that our buyers in this market have a better chance at looking at homes where the sellers are motivated. There is more activity in the spring market, but the buyers and sellers in the market now are generally more motivated to get a fair deal done.

So, is the market good? As far as I’m concerned, it’s always good here in San Luis Obispo. If you have any specific questions about the market or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Oct. 12, 2018

A Market Update and An Event Invite You Won’t Want to Miss

PLEASE NOTE THE MOVIE EVENT IS NOW SOLD OUT!

In addition to the market update we’ll be sharing with you today, we would also like to take a moment to thank you all for your continued support. Your business, reviews, and referrals mean a lot to us.

With that in mind, it’s time once again for our annual movie event. This event is just one of the ways we hope to show you our appreciation. So mark your calendar for Saturday, November 10 at 9 a.m. and come join our team for a special, private viewing of The Grinch.

Moving on, we would also like to take a quick moment to review some developments in our real estate market.

First, inventory has gone up. The number of listings that came to our market this September showed a 12% increase year over year. Meanwhile, the average number of days on market is also on the rise. Beyond homes taking longer to sell, though, we have also observed a 13% drop in the number of sales between this September and the last.

So, what do all of these conditions mean?

In my opinion, buyers and sellers in the San Luis Obispo area should expect continued strength and activity from our market. Between our low crime rates, beautiful scenery, and great local economy, there’s no other market I’d rather work in.

If you have any other questions, would like more information, or are interested in how you can take advantage of our amazing market, feel free to give my team or me a call or send us an email. We look forward to hearing from you soon.

Sept. 19, 2018

Aerial Tour: 10945 Vista Rd , Atascadero 93422

Nestled within the hills and surrounded by oak trees, this nearly 8 acre parcel provides the ideal backdrop for your dream home. The lot is situated at the end of the cul-de-sac and continues on a private, shared road offering a peaceful and private setting. Imagine sitting on your newly constructed deck overlooking the hills, enjoying fabulous sunsets and nature at your door. Just minutes to downtown Atascadero with shopping, restaurants and entertainment, a short commute to San Luis Obispo and Paso Robles with award winning wineries.

Posted in Atacadero, Land, Video Tour
Sept. 12, 2018

Your August Real Estate Market Update

The numbers for August are in, and they suggest that the market has, in fact, shifted.

I’ve noticed three things:

1. Our inventory has increased. Inventory increased by 22% year over year, which means if you’re selling your property and want to take advantage of the market, you’ve got to be in the top position in terms of price and condition. For buyers, it means you have more choices and less competition than you would have had just months ago.

2. The days on market is higher. This means that homes on the market are taking a little bit longer to sell. For example, in San Luis Obispo, we’re now up to 53 days on the market, where it was 38 days this time last year. This might have been a problem earlier in the year, but we understand that now that we’re approaching fall, it could take a little longer.

3. Prices are softening. In our service area just one year ago, we saw 163 price reductions. In just August of 2018, we’ve had 497—that’s more than three times what saw in 2017.

To be 100% clear, this is simply a normalization of the market, in which buyers have more time to make decisions and sellers are becoming more flexible. In my professional opinion, it’s more balanced and sustainable now.

If you have any questions, feel free to reach out to us anytime. We’d be glad to help.

Aug. 29, 2018

How Our Shifting Market is Affecting Home Sellers

As our market shifts, certain changes are taking place. As a home seller, there are three changes you need to be prepared for.

First, you’ll be competing with more sellers. Buyers have more homes to choose from, which means you won’t attract as many who are interested in your property. Because of this, it might take you longer to find the right buyer and sell.

Second, more sellers will have to adjust their prices or make investments to improve their homes in order to attract more buyers. Now more than ever, pricing your home correctly once you put it on the market is crucial to earning top dollar from its sale.

Third, sellers will have to be more responsive and more respectful to any buyers who come along. Six months ago, selling a home was like fishing in a pool full of fish. It didn’t matter if you caught one but it slipped off the hook while you reeled it in, because there were plenty still left. Now it’s more like there’s only one fish floating in the pool, so if you manage to get it on the line, you need to make sure you reel it in.  If you manage to snag a buyer, you’ll have to work very hard and possibly compromise in order to get that buyer to close escrow and complete the home sale.

This situation may sound like a lot, but it’s simply a case of a normalizing market. What’s the upside of selling your home right now, though?

First, most home sellers will need to buy another house once they sell their current one, so if you get a little bit less from your home sale, you’ll make up for it once you buy.

If you plan on selling but you don’t plan on buying soon afterward and you’d rather rent instead, that’s fine too. Some experts are predicting that this shift will continue, so if you sell sooner, you’ll have more money in your pocket.

If you’d like to know more about this shift and how it affects you, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.

Aug. 6, 2018

Virtual Tour: 129 N Silver Shoals Drive, Pismo Beach, 93449

Stunning custom home showcasing fabulous ocean views from virtually every room. Privately situated on one of the most beautiful streets in shell Beach, just steps away from the ocean.

Top of the line finishes and attention to detail evidenced throughout including Venetian plaster walls, crown molding, exquisite lighting, custom built cabinetry, arches and columns just to name a few. Beautiful courtyard entrance with fountain and lush landscaping set the tone for romantic resort-like atmosphere.

Multiple decks and seating areas including a roof top deck with spa, patio area with built in fire pit, large deck off living room with remote controlled awning provide additional outdoor living space ideal for entertaining and taking advantage of the ocean views and the mild weather. Luxurious master suite with french door access to private deck overlooking the ocean.

Completely private guest accommodations, a library with fireplace and floor to ceiling custom bookcases, wine tasting room with storage and refrigeration, a gym, media room and over-sized storage area.

A house of this caliber naturally features a gourmet kitchen with center island Dacor oven and microwave, Fisher-Paykel double drawer dish washer, 2 sinks with disposals, 2 water filtration systems and spacious walk-in pantry. Central air conditioning, central vacuum system, hard wired alarm system, Sonos controlled indoor/outdoor sound system, just too many wonderful amenities to list!

Click here for more details.