The Real Estate Facts Today
Real estate facts and the real estate market are constantly changing. Here is some very current national and local information to help guide you on your way.
I recently heard Jonathan Smoke, the Chief Economist for Realtor.com speak about the market today and provide current real estate facts. The market we are in right now. This is always valuable information to me because as an agent, I can be in the middle of helping people buy and sell homes and not really have time to poke my head up from my escrows and see what is happening all around me. And it’s always good to get the perspective of an economist!
Jonathan Smoke spoke on a national level, but everything he said can be applied to real estate right here in San Luis Obispo County. Today, we have great demand and not enough supply. Lots of people wanting to buy and not enough houses. We have a supply of 4 months of product, meaning, if no new homes are listed today, all of the homes currently on the market will sell in just 4 months. That’s considered low inventory. Average, and a balanced market is about 6 months of inventory.
We are just now starting to see new construction popping up around us. That new construction is great, but far behind filling the need for housing all around us. It does show that prices have risen to enough of a high that builders can again build and make a profit and that’s a great real estate fact.
While credit is beginning to loosen a bit, it’s actually the buyers who are helping themselves more than the banks. They have been frugal, paid off debt, and are coming in with equity from the homes they are selling, good credit scores, job security and are finding the banks are willing participants.
The foreclosure crisis book can be closed. Foreclosures today make up only 1% of the market. And homes that are in serious deliquency are at the lowest number in 8 years.
With low inventory nationwide, there is only one category of home that is still in a weak position. The luxury home market, which was greatly influenced by foreign buyers, is still struggling. And our foreign buyer market has declined because of the struggling world economy.
The good news for homeowners is that demographically speaking, the next 10 to 15 years will see a rise in home buying. The boomer generation continues to move up, move out and move on. At the same time their children are coming into their prime buying years.
While our median sale price of 2006 ($521,000) has not yet returned, and may not return for a number of years, there is solid growth in the market, solid interest and prices this Spring are on the rise. Our median sales price today is approximately $449,000. A far cry from a low of $281,000 in 2011.
The new is good. The market is good. We’ve had some great rainfall this year. And Spring has Sprung! So call me if you or someone you know needs help with a move. I’m ready!