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.