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 certainly felt slow to me but the numbers are telling me that we are pretty much on par from last month. In fact, if we look back at the Last Week In Real Estate from July 22nd, we see the numbers are nearly identical. Last week 10 homes were listed for sale, 8 homes were put into escrow and 5 homes were sold. What is different, is the median price for homes over the period of that week.
This past week represented an increase in median home prices of “for sale” and “pending” homes and a decrease in “sold” homes. The for sale home prices are 21% higher for the same week last month and pending home prices are at 111% of the median price for pending homes a month ago. The sold home price is 71% of the same week last month. What I am sensing is that sale prices are still really good for sellers as they are up from where they were last year by 12% (43% over 2 years) and the months of inventory index is down 60% from two years ago. Last year, we were at about the same point with our inventory which suggests that there is still a strong demand for homes and not enough supply to suppress rising prices on homes, despite the decreased month to month sale price previously mentioned.
Sale prices may be increasing which is good for sellers but that is not all that increased last week. Interest rates took another tick upward. Last week I saw a 5% interest rate on a 30 year fixed conventional loan that made me flinch. It looks like the days of ridiculously low interest rates are going by the wayside but we are all fortunate that rates are still very good. For a buyer this number does make a difference, buyers that are limited on what they can buy with a 4.5% loan are now even more limited and that jump may be the last chance that they had at buying a home for a reasonable price. With the number of competitors out there trying to buy the same homes, competition is still fierce.
Putting it all together: We are still seeing an influx of homes on the market with a steady stream of the homes selling reasonably quickly and for near asking price with those prices continuing to increase. I would say that we are looking at a sellers market still with what I hope to be a softening appreciation and a more steady market as interest rates rise and we move into the fall season. It will be interesting to see how the increase in mortgage rates affects the volume of home buyers over the remainder of 2013, if at all. If you’re a seller or a buyer, there is an opportunity to make a good deal in today’s market at a good price, with a good loan and with some stiff competition.
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