August 2023 SLO &SB Co. market update!

Welcome to our August 2023 San Luis Obispo & Santa Barbara County market update! 

We'll cover three essential topics: market statistics, the housing situation, and future prospects. 

Firstly, let's talk about market statistics. As the saying goes, "The more things change, the more they stay the same." Interestingly, we currently have about a hundred fewer homes for sale compared to this time last year. The inventory remains very low, with 40 fewer sales and new listings in SLO county and 58 fewer in Northern Santa Barbara County. It's remarkable to see more homes being sold and taken off the market than new ones coming in. We may even reach a point where there are no more homes to sell if this trend continues. The tight housing market and low inventory persist.

Next, let's address the housing crash that has been a topic of discussion lately. Between April and December of last year, the market experienced a significant slowdown due to a drastic increase in interest rates from around 3% to 6%. Since then, the market has been on an upward trajectory. Instead of experiencing a pricing crash, we are actually facing an inventory crash. Demand remains strong while inventory remains scarce, both locally and nationwide. With interest rates now around 7%, the market remains dynamic and resilient.

Considering the future, there is still immense interest in the real estate market. Our website's traffic has soared, showing a substantial increase in interest. Predictions suggest that interest rates will likely stabilize and may even decrease later this year or into the next. Some prominent real estate information sources, such as zillow, anticipate continued price increases through 2026.

So, what does this mean for you as a seller or buyer? If you are thinking of selling your home, it's an excellent time to do so. The low competition and high demand create an advantageous selling environment. On the other hand, if you're a potential buyer, consider making a purchase now (before interest rates drop and there’s even more competition, continuing to drive the prices up) and capitalizing on lower interest rates later by refinancing your home loan- many lenders offer this option to their borrowers.  Many lenders are also offering rate buydowns, allowing buyers to reduce interest rates and  mortgage payments for the first 2 years (and giving them the opportunity to refinance as the interest rates decrease.) 

In conclusion, the current real estate market is unlike anything we've seen before, and it's an exciting time to be involved. If you have any questions or need assistance, please feel free to call me at 805-458-3854 or Nick at 805-458-5710.