Saturday, December 8, 2012

CCL Reports: SLO County homes selling at fastest rates since 2005

Real estate for sale

Through the first 11 months of the year, San Luis Obispo County has had its highest pace of home sales since the boom years of 2004 and 2005, according to local real estate statistics aggregator SLO County Homes. Home prices have jumped about 5.4 percent in 2012 from the post-recession 2011 lows, but still remain at 2002 and 2003 levels.

Movement in the median home price in 2012 has been minimal. In January, prices jumped, but have since hovered around the 2012 median of $390,250.

Despite the lack of price momentum, the market is displaying the fundamentals necessary for further increases. Elevated demand for real estate, declining inventory, an improving economy, and a shrinking portion of distressed properties (REO and Short Sales) on the market all should help real estate values increase.

Given these factors, we expect to see home prices continue to rise in 2013. Soon, the biggest question for the San Luis Obispo County market will be if there is enough supply to keep up with growing demand.

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Median Home Price

The 10-year history of the median home price in San Luis Obispo County looks like like an upside-down ?U?. Demand for real estate brought the County median home price from $405,000 in 2003 all the way to $590,000 in 2006, before they dropped as the bubble popped to pull air out of the U.S. economy.

The median price bottomed out in 2011 at $369,000.

Through 11 months in 2012, prices are up 5.4 percent to a median of $390,250, but this level remains below 2003 levels.

The prices in 2012 remained steady in July except for a brief spike in July.

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Home Sales

Year-to-date, 2012 has 2,587 total sales, which eclipses 2006 (2,335) and falls below 2005 (3,064).

There have been 1,826 ?normal? homes sold to account for 70.6 percent of all activity.

Short Sale activity has increased to its highest level in recent record and the 355 short sales in 2012 account for 19.4 percent of all activity.

REO sales has declined to their smallest share of sales since 2008.

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Summary

Elevated sales and declining presence of discounted REO and Short Sale properties suggest that home prices have a solid foundation for further growth in 2013.

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Central Coast Lending is a California mortgage brokerage based in San Luis Obispo County. With offices in San Luis Obispo, Morro Bay, Paso Robles, and Arroyo Grande, Central Coast Lending is the top source for Central Coast mortgage, real estate, and home loan needs. To see why using a broker offers lower rates and superior service, click HERE. For a free, hassle-free online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers.


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Source: http://www.centralcoastlending.com/2012/12/ccl-reports-slo-county-homes-selling-fastest-rates-2005/

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