|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 SLO real estate we saw a substantial drop in the activity on the Single Family Residence market. The previous week featured 28 total listings move on the market of which 10 were new inventory (including 5 new construction homes), 11 Pending homes and 7 Sold homes. For the week of 8/26-9/1 the median home price for the new listings was $627,725. Pending and Sold median prices were $659,000 and $718,715 accordingly.This past week, we had a market make up of just 1 Active listing, 8 Pending and 4 Sold listings move on the market. The one new Active listing was at the price of $685,000 whereas the Pending and Sold homes were at a median price of $591,700 and $518,750. Now here comes the interesting part of this report.The previous week we saw a large influx of new construction homes representing the Serra Meadows project’s introduction of their first phase of sales. 4 of those 5 new homes went into escrow almost immediately and translated over to Pending homes last week. As we see more of the Serra Meadows project hitting the market it will greatly affect what the market will bear for pricing. Considering the fact that San Luis Obispo has not seen a new housing development of this magnitude in over a decade this project has the potential to affect prices of not only new homes but existing home sales as well. When homebuyers are presented the chance to buy a new home in the $550,000-$650,000 range versus an older home that may need some additional cash investment to update we will certainly see what kind of demand there is for new homes and what folks are willing to pay for existing homes.
Another thing to take note of last week was the increase again in interest rates. Since January of this year the 30 year mortgage rate has increased 36% to a still modest 4.57%. This week and the next we should start to see how the Fed will react to the economy and adjust rates accordingly. Stay tuned for more information on that.
Make it a great week!
|About Dom Tartaglia|