September Home Prices Rose Despite Softer Demand
Arroyo Grande, CA – October 19, 2017─ Home sales in San Luis Obispo and Santa Barbara Counties wilted in the record heat in the last weeks of September. The summer ended with rising prices and seasonally low inventories of homes for sale, according to the September Central Coastal Market Report from Century 21 Hometown Realty.
High prices and meager supplies of homes for sale in both counties discouraged buyers. Sales fell in two of the three summers, lowering pressure on inventories. The deficit between 2017 and 2017 shortages remained steady in San Luis Obispo County during the season and fell in Santa Barbara County, raising hopes that the inventory deficit has bottomed and supplies will begin to improve. In San Luis Obispo County, the time it took for a house to receive a contract after being listed significantly increased in August and September, a sign of reduced pressure from buyers.
Lower demand also relieved upward pressure on prices. Both counties reported healthy price increases in August and September. San Luis Obispo’s median price was only $5,000 below the county’s five-year price record, which was set in July. Homes sold for about 5 to 5 percent below their listings prices in both counties−another signs that the market is stabilizing compared to the spring months.
“Autumn in the Coastal Counties is shaping to a better time for buyers than spring or summer. New listings are replacing sold homes, which keeps the supply of homes fresh for buyers. Homes are still selling. Sold homes are being replaced by new listings, keeping inventories fresh and steady.
Rates are still very low, and local home price increases in our region are slowing down. If you are a first-time home buyer, the remaining months of the year may produce some bargains,” said Amy Gallagher, corporate broker of record for CENTURY 21 Hometown Realty.
In June, CENTURY 21 Hometown Realty closed on 88 homes totaling $41,113,300.
San Luis Obispo County
September home sales rose less than 1 percent over August and ended the month 6.6 percent higher than they were last year. Total sold dollar volume reached $210,242,114 for the month. At $550,000, the county’s median sales price was only $500 below the county’s five -year high. Homes are selling in 32 days, 20 percent slower than in August.
Supplies of homes for sale in September were 1 percent less than in August and 14 percent lower than a year ago. About 13 percent fewer properties were listed in September than in August. Homes sold in 37 days, a slower pace than in August.
In the city of San Luis Obispo, home sales dropped 11 percent from August and were 13 percent lower than in September 2016. At $615,000 the county’s median sale price fell slightly, by 1.6 percent, but was 2.7 percent higher than a year ago. Total sold dollar volume dropped to $27,791,803, down 11.8 percent from July Homes sold slowly in August, in 78 days, 21,9 percent lower than in August. Active listings were 30 percent lower than they were a year ago.
In Atascadero, sales fell 8.9 percent from August but were still 7.9 percent higher than a year ago; The median sales price reached $448,000. Homes sold in 34 days, much slower than in
Local market data and listings for San Luis Obispo County communities are available at Arroyo Grande, Atascadero, Avila Beach, Cambria, Cayucos, Creston, Grover Beach, Los Osos, Morro Bay, Oceano, Paso de Robles, Pismo Beach, San Luis Obispo, Santa Margarita, San Miguel, San Simeon, Santa Ynez, Shandon, and Templeton.
Santa Barbara County
September sales in Santa Barbara County continued to fall at a faster rate than prices rose. Sales were down 10 percent from August and 70.4 percent from a year ago. The county’s median sold price rose 5,4 percent over August to reach $397,500. Total sold volume in the county fell to $415,517,292.
Total active listings in the county fell 9 percent from August and 53 percent from 2016. The dramatic decline resulted from a large-scale fall-off of new listings, which were 72 percent lower than a year ago and 34 percent from a month ago. Slim inventories helped to shorten the median time on market to 20 days.
In Santa Barbara city, sales dropped 37.5 percent in September for a total sold volume of $16,449,877. Sales fell 44.4 percent below September 2016 and prices fell 32,9 percent from last year to a median price of $1,250,000. Houses sold in a median of 205 days.
The city of Santa Maria saw sales fall 62.4 percent from August and 6 percent from September 2016, Prices rose 8.1 percent to a median of $376,000. Homes sold in 35 days, 25 percent than in August.
August Home Sales, San Luis Obispo County (red)