June 4, 2022
The markets in general are volatile, but what are we seeing locally on the Central Coast?
A shift. The shift we have been discussing for the last few months has come to fruition in the last month or so.
How so? The short version is that a significant increase of new listings have entered the market and rates have continued to climb (although they have gone up and down in the few couple of weeks, an upward trend is still expected).
In the month of April 2022 there were 93 active listings in SLO County. In May 2022, this increased to 188 active. As far as interest rates, we have seen an approximate 2% increase since the start of the year.
What does all of this translate to? We may start to see some homes sitting longer on the market, more price reductions and offers being made with standard terms and contingencies. The data thus far does not suggest a real estate market crash, but rather a possible correction. As far as prices go, experts still predict an increase in prices this year, but a much more modest rate than we have seen the past two years. (Think more along the lines of 8-10% versus 25%). Yes, it is still possible to see price appreciation with a market correction. We should be looking at this as more of a shift than anything – it is still a Sellers Market, and still a strong and competitive market. The changes discussed are more in line with a balanced, healthy market, not the drastic market we have seen over the last two years. At the present and near future, price reductions will likely happen with homes that are at a higher price point (1 million +). There is such a pent up demand for homes in the $400,000-$600,000 range that a change in the direction of the market will likely take longer to impact those price points.
Tips for Buyers:
Tips for Sellers:
Key Takeaway: None of us have a crystal ball and there are a lot of external factors that determine the overall status of the market. Thus far, however, the state of the market is in line with recent predictions. I am keeping an eye on all of it, and am happy to discuss your concerns or any questions you may have. Education is key, so even if you decide to not buy or sell, it’s better to make that decision because of data and discussion based on your personal goals and situation with a trusted professional.
All the Best,
Amber
Amber Johnson | December 23, 2024
Amber Johnson | December 23, 2024
Amber Johnson | December 21, 2024
Amber Johnson | December 19, 2024
Amber Johnson | December 18, 2024
Amber Johnson | December 17, 2024
Amber Johnson | December 16, 2024
Amber Johnson | December 16, 2024
Amber Johnson | December 13, 2024
You’ve got questions and we can’t wait to answer them.