North San Luis Obispo County Real Estate update June 2017
Right now, we are simply short on inventory. We are selling houses in San Luis Obispo County faster than we are listing them. This is creating an upswing in market prices and in some cases, multiple offers. We have no shortage of buyers wishing to get out of rental housing and purchase or of incoming buyers from both ends of the state and other parts of the Country.
Our inventory shortage is from a combination of factors. First of all, many homeowners have refinanced their homes in the past 5 years into very low interest loans. If they currently have a 3% interest loan rate and want to sell and buy, they will be purchasing a home at both an increased value and at higher interest rates. Something in the 4 to 4 1/2% bracket. That simply keeps owners put. Secondly, with such low inventory, if a seller wants to change their lifestyle with either up or down sizing their residence, they have very few choices. And thirdly, we have had little to no new construction in San Luis Obispo County, and especially North County since about 2005. That's 12 years of almost no new construction.
So, with all of the above, we have a very tight, sellers market. If homes are well priced, anything under $600,000 is selling in 30 days or less. And even higher end homes into the million dollar category can see their sale come in within 90 days.
What does this mean to you? If you are a buyer, and you can find a home that works for you, buy it now. We do expect both interest rates and home prices to continue to rise this year. If you are a seller, then perhaps you have more equity than you realized. Contact me and let's see if selling is right for you today. Perhaps you should wait. My advice is provided based on your particular needs, so not one scenario fits all.
No matter what you decide, I want you to stay informed as to what is happening in our marketplace. This County is such an awesome place to live. The word is OUT!
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