In today’s market report, I’d like to address three topics: 1) I’d like to take a quick walk down memory lane; 2) how all the new construction has affected the market; and 3) a general update on the market.
First, we’ve learned a lot in just the past eight years here on the team. We’ve gathered an amazing team together, and we take time every week to work on and improve our quality of service. Since 2011, we’ve sold over 1,200 houses!
Let’s go back to 2011 for a moment. If you owned a house in Morro Bay at that time, there would have been 122 other homes for sale on the market. This year in 2019, there were 33. In the 2011 Morro Bay market, the average sales price was $323,000; in 2019, the average price has soared to $800,000!
Now let’s look at a less extreme example: San Luis Obispo. This month, we had 118 homes on the market; in 2011, we had 212 homes. The average price this month was $861,000, which is still quite a jump from 2011’s $480,000. In Paso Robles, the average price went up from $269,000 to $474,000. As I said before, our team has grown a lot since then, and the market has changed as well.
Secondly, we have a lot of new homes coming on the market, which usually affects the market, but it hasn’t impacted us just yet. There have been a number of sales in the San Luis Obispo area, but not many were the new homes in the area. It could be that they’re not quite ready to sell yet; at any rate, our market hasn’t been affected yet. However, if you factor in the 1,700 to 1,900 homes that are planned to be listed on the market, that’ll take a big bite out of our inventory, meaning there’ll be a lot more for sale.
And that brings us around to our general market report. This month, virtually 20% more homes sold than this same time last year—a big increase in closings. There was also a 32% reduction in new listings, and inventory is down by about 3%. Some people are holding onto a specific price, but if you’re realistically priced, then you’ll be in good shape in this market.
So what does this all mean for you?
If you own property, it means you’ll have virtually no competition. Combine that with our interest rates (which are at four- to five-year lows), and our market is a perfect storm. If you’re in the market to buy, you can act now to lock in our low rates for the life of your mortgage.
Again, thank you all for your support and your referrals. If you have any questions about the market or about buying or selling real estate, don’t hesitate to reach out to us. We’d be glad to hear from you.