Last week in real estate is the weekly notice for what happened in the San Luis Obispo real estate market as interpreted by Dominic Tartaglia of Tartaglia Realty.
Last week in real estate we saw an influx of 12 for sale homes listed on the market in the price range of $540,000-$959,000 with an average value of $716,491. Most of those were 3 bedroom homes, half of which had 2 bathrooms and the other half had 3 bathrooms. The average square footage of homes listed last week was 2,058 SF.
We saw 8 homes go into pending contracts with an average value of $745,750 and a range of prices from $560,000-$1,095,000. The average number of rooms in the pending homes was 3.4 bedrooms and 3 bathrooms. Average square footage was 2,001 SF.
In the SOLD home market we saw 7 homes go to new San Luis Obispo home owners at an average sale price of $623,857 and a solid 99% of the asking price. 5 of the 7 homes had 3 bedrooms, one was a 2 bedroom and another had 5 bedrooms. The average number of bathrooms was 2.25 bathrooms.
What does it look like to me?
When I look at these numbers I see a difference in the basic fundamentals of the free market, supply vs. demand. In our case we have a shortage of supply and strong demand for homes, particularly in the $500,000-$999,000 market. This is no news to many people that have been shopping for a home within the last 6 months. We are seeing home prices rise with a negative correlation between the new listings and sold listings. Over the last 15 months we see this number is quite dramatic with a ∆ of -32% of new listings and a ∆ of +43.3% of sold listings and a trend that does not indicate a relief any time in the near future. In figure 1 you can see the graphic interpretation of these numbers.
What it all comes down to is a difficult market to buy a house in and a good market to sell your house in. Many buyers are still looking to capitalize on low interest rates and hoping to find a home that is still a good value and home owners are starting to sell their homes again but at a very slow rate which consequently is also inflating values. I think it is still a great time to buy despite the increased interest rates and rising prices. I would also say that depending on your financial position in your property it is a good time to sell as well. Many buyers are quickly being priced out of the market as prices are increasing and if I were selling my property, I would want as many potential buyers to see my property as possible. Additionally, with interest rates as low as they are there are still buyers that are capable of qualifying for loans to purchase homes and I feel comfortable saying that as a seller, the ball is more in your court than it has been in several years.