Today, I’d like to recap what happened in our February market.
The numbers we’re seeing right now are pretty consistent compared to this time last year. However, because our inventory is a little lower, we are seeing a lower sales volume this year compared to last year. That said, the average price for the month of February is significantly higher.
I pulled a few areas that stood out. For example, in Morro Bay, the average price for the seven sales we had this February was $783,000. Last year during the same period, the average price was $605,000, so that’s a 29% jump in the average price.
With seven home sales, you can have four high-end home sales, and that skews our average. So does that mean prices are up 29? No, that’s just one month. In general, though, we are seeing a pattern of increasing home prices and fewer sales.
In Paso Robles, the average price in February 2017 was $415,000. This year, the average price was $493,000, resulting in an 18% jump. That is over a large volume of sales, with 27 home sales last year compared to 21 this year. Again, there has been a slight drop in sales and a slightly higher price.
2018 should continue to be a solid market similar to last year. One of the main differences to pay attention to is interest rates. At this time last year, rates were around 4% for a 30-year loan. Today, they have gone up to 4.4% or 4.5% for a conventional loan of $453,000. That’s not a life-changing difference year to year; it’s only an extra $100 or $110 a month.
However, if interest rates continue to go up (which there is talk of), that could have an impact on affordability, which could affect the market and sales.
In general, our market is on a steady climb. There aren’t many homes available, so now is a good time to sell your home or buy one to lock in a low interest rate.
If you have any other questions about our real estate market, just give me a call or send me an email. I would be happy to help you!