It's been a little while since we last spoke with you, and some key things have shifted in the San Luis Obispo real estate market. Hopefully you find this information useful if you're buying or selling.
Normal / Stable Market: We are entering a stable market due to an increasing inventory of homes. We currently have a 3-month supply of homes (about 888 homes), compared to last May when we had a 2-month supply.
This is an improvement over last year when people were fighting each other over available homes. This year, if you have an attractively priced home in a good location, you'll be able to sell it for a good price and possibly receive multiple offers. I would also expect a slight amount of appreciation stemming from these changes.
Less Demand: Another thing to note is that we do not have the backlog of buyers that we once had, and so even if your home is well-priced, in good condition and in a good location, you may sit on the market for a few weeks. This has nothing to do with your property being sub-par, we simply don't have the number of buyers we used to.
Low Interest Rates: Mortgage interest rates continue to stay very low. Rates are currently sitting around 4.25%, but they are expected to rise by a whole percentage point by the first quarter of 2015. If you're thinking of buying, now would be a good time to do so because homes are very affordable right now. If you wait, you will only be paying more and more in your monthly mortgage payments, and that could cost you thousands of dollars over the course of a loan.
Listing Price or Higher: Unfortunately for buyers, you will likely have to pay the listing price for a home, or maybe even a little extra. You may be able to negotiate, but for the most part my clients in San Luis Obispo are paying the full listing price.
Don't Mind the Media: There have been various reports that have been hounding the real estate industry, and you should disregard them. They are using old, dated information from almost 6 months ago. The same is true for real estate websites - you should be wary to trust their information including home listings and home pricings. You should always consult your local real estate agent if you want the most updated information about real estate in your area.
At the end of the day we have a very stable market with slight appreciation (depending on where you are). If you have any questions about this information or about San Luis Obispo real estate in general, please do not hesitate to contact me. I am always willing to sit down with you to discuss all of your individual needs.