Are Current Mortgage Rates Affecting the Market?

Despite the recent rise in mortgage rates, our market is still offering great opportunities for both buyers and sellers. Here’s why.

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If you're concerned about the recent rise in mortgage rates, I want to reassure you — things are much better than they seem. Yes, mortgage rates have certainly risen since 2016. From a low of 3.44% last August, the 30-year fixed mortgage rate reached 4.12% in January and hovered just slightly below that into February. This increase means you’d be paying almost $100 more each month on a $250,000 purchase. That's a sizeable chunk of change, and it's got some people nervous However, the current rise in rates is unlikely to affect the real estate market anytime soon. Why? The rates we saw last year were an all-time record low. Historically, rates have been far higher. Ten years ago, the same 30-year mortgage rate stood at 6.34%. For much of the 90s, rates hovered between 7% and 10%. Throughout the 80s, average annual rates never dipped below 10%. In 1982, when I actually purchased a home, they were as high as 16%.

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Current rates are still at historically low levels.

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When viewed in this context, it's clear that current mortgage rates are still very, very low, and the real estate market is actually in a very good place. What does this mean for you? If you are looking to buy, the current low rates offer a great opportunity to afford an amazing home. If you're looking to sell, you are in a great position to do so quickly and for a top price. You see, last December did see a drop in home sales — but not because of any rise in mortgage rates. Instead, this slowdown was due to a constrained supply of new homes. In fact, there are plenty of eager buyers around our area, and prices continue to rise. If you want to discuss upcoming trends in home buying or selling or you need a referral to a lender, don’t hesitate to give us a call. We’re here to help you.

What’s the Latest News From Our Local Real Estate Market?

The latest stats are in for the San Luis Obispo County real estate market.

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I just received the latest market snapshot for San Luis Obispo County, so today I’m going to answer the question, “How’s the market?” Let’s break down the statistics and start in the northern part of the county, where the single-family median home value stands at $484,814. The year over year median price rose 18% after a two-month dip. The average property in this area is on the market for 68 days, and there are 196 properties currently listed for sale. Moving over to Scenic Coast, the single-family median home value fell for the second straight month and now stands at $540,000. The year over year median price also fell 4%. However, the average property in this area is on the market for only 58 days, and there are only 75 properties currently listed for sale.

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Across the county, fortunes varied for buyers and sellers.

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Heading down to San Luis and Avila Beach, the single-family median home value stands at $720,195. The year over year median price rose 5%. The average property in this area is on the market for 50 days, and there are 35 properties currently listed for sale. Here in the southern part of the county, the single-family median home value stands at $568,000. The year over year median price adjusted upward 1%. The average property in this area is on the market for 78 days, and there are about 200 properties currently listed for sale. If you’re interested in knowing what your home is worth in your neck of the woods or want to know the value of a home you’re interested in buying, please feel free to give me a call. I’d be happy to speak with you!

How Does the Central Coast Market Affect Me?

What's going on in the SLO market? It's still very robust, so today, I'm breaking down what that means in different counties.

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Welcome back to the Central Coast Updates! The latest snapshots for San Luis Obispo County just came in, so I wanted to give you a look at what's happening in the marketplace. Our market is still very robust throughout most of the county. Starting in North County, let's take a look at Paso Robles, Atascadero, and Templeton, where it looks like inventory is shrinking. Days on market is going up, values came off of last month's high, and the year over year value appreciation was relatively flat. This means if you have real estate plans, you definitely need to get connected with a good Realtor. Moving to Scenic Coast, which is Cambria, Cayucos, Morro Bay and Los Osos, inventory is also shrinking, days on market are going up, values came off of last month's high, and year over year, appreciation was somewhat flat. Down in San Luis Obispo and Avila, the month before that, median price took a big jump over last month, which is typical for this time of year. Interestingly, there was just a 1% increase in median price year over year. This is the third straight month where days on market has gone up and inventory has gone down.

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Our market is still very robust throughout most of the county.

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Down in South County, the Five-Cities area, median price saw a big jump in the last month and days on market jumped up slightly, making it the second straight month where prices have been somewhat flat. How does this affect you? For a more in-depth conversation, just give me a call or send me a text. I'd be happy to help you out and examine your own situation further. I look forward to hearing from you!

Monthly Market Statistics for San Luis Obispo County.

Though our market is very robust all around, it’s still favoring sellers. If you’ve been thinking about listing your home, now’s the time to act.

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The numbers from last month’s MLS are in, so how’s the San Luis Obispo County real estate market faring?

I’m pleased to report that our market is still very robust. Due to the lack of inventory, the number of homes for sale in the county is down 8%, and the number of homes that have already sold is down 12% over the previous month. However, the number of homes that are in a pending status is up 10.7%. Watch for those homes to close soon and be included in next month’s “sold” category.

The average price per square foot of a home is down 5%, which means that there may be a slight correction coming, but homes are selling quicker and the average days on market is down 11.3%. Although it’s up slightly from the previous month, there’s still only a 3.2 month’s supply of inventory.

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The numbers show that we’re still firmly in a seller’s market.

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In reviewing these numbers, it seems like the housing crisis is finally in the rearview mirror. There may be a correction here and there, but overall this has been and will continue to be a great year for real estate. However, there is one thing that may cause the industry to tap the breaks, and that’s a lack of inventory. If you’re debating whether or not to put your home on the market this year, now is the time to take advantage of the buyer demand.

If you’re interested in knowing what your home or a home you’re interested in buying is worth, please feel free to visit our home valuation website or just give me a call. I’d love to talk with you!

San Luis Obispo Market Snapshot

What's going on in the market? The numbers for September are hot off the presses, so I wanted to share some interesting details about what our market looks like this season.

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The market snapshots for San Luis Obispo are just in, so I wanted to talk about how the real estate market fared in September. The market is still very robust all over the county. In North County, there was a month-to-month drop in property values and properties were on the market a little bit longer (61 days) in September than in August, but the median price year over year rose by 10%. In Scenic Coast, the moderate growth in August values were dwarfed by the 19% increase in September, which is great. The single-family home value is up to $650,000, days on market is down to 41 days, the median price is up about 19% year over year, and there are about 104 properties available.

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The market is still very robust all over the county.

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Down in San Luis Obispo and Avila, the list of available properties for sale really shrunk last month. When you couple that with properties being on the market for fewer days, it really means less competition for today's sellers. The median single-family home value is about $716,000 and the average time on market is down to 38 days. The median price is up about 3%, and there are only 47 properties listed on the market in that area.
Down here in South County there was a big jump in the median price in the Five Cities areas. The number of days a property stays on the market for sale also jumped. The median single-family home is up to $615,000, the days on market are up to a 68-day average, and there are only 247 homes listed on the market. Year over year, though, the median sales price is up 15%. As you can see, things can vary a lot by area, so if you're curious about what your home is worth in your specific area, I'd be glad to help. If you have any questions, don't hesitate to call or email me today.

Central Coast Market Snapshot

The real estate market in San Luis Obispo County is still very robust. First, the numbers for the North County area:

1. The median price for a single-family home is $455,000, up 3.4% year over year. 
2. The average days on market for a property is 50 days. 
3. The median price per square foot for a home is $262. 
4. There were 343 properties listed in the area at the end of July. 

Here are the numbers for the San Luis Obispo/Avila area: 

1. The median price for a single-family home is $784,500, up 16% year over year. 
2. The average days on market for a property is 31 days. 
3. The median price per square foot for a home is $431. 
4. There were 98 properties listed in the area at the end of July. 

Finally, the numbers for South County area: 

1. The median price for a single-family home is $590,000, up 1.7% year over year. 
2. The average days on market for a property is 54 days. 
3. The median price per square foot for a home is $357. 
4. There were 276 properties listed in the area at the end of July.

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The market for San Luis Obispo County is still very robust.

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If you’re interested in knowing what your home might be worth or have aspirations to buy or sell, please feel free to reach out to me. Just give me a call or shoot me an email, and I’d be glad to help.