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.