The Paso Robles Real Estate Market is on track again! We are seeing inventory getting eaten up this Spring while the sellers are reluctant to list what they own. With more sales than listings, more demand than supply, the result is that we will see prices increase this season.
Another factor which is helping our market move forward is low interest rates. However, with these rates down in the low 3% range, what will naturally occur is that home prices will rise. When money is cheap, more buyers can enter the market and there is more competition for the same properties. What is interesting is that we had a similar trend in the Spring of 2014 that petered out by Summer. I believe the difference this year is that our economy is stronger and people are more secure in their jobs today. I predict that we will see a strong Summer market as well.
Prices today have increased to a point that is much harder for investors to buy properties that they can buy and flip. There is simply not enough room to make a profit. That is good news for first time home buyers who cannot compete with investors paying all cash.
My advice today is “get out of your rental and go buy a house/condo/PUD or any kind of single family residence you can”. These interest rates won’t last into next year and the price you see today may be higher by Summer.
The Paso Robles Real Estate Market is doing well, despite the drought. Despite what the politicians are doing about our water situation, we all know it will rain again someday soon. And when the rain comes back, we will see lots of it!