Scant Supplies of Listings Push up Prices for Burned out Buyers

Arroyo Grande, CA – December 20, 2017−Inventories of homes for sale in California’s Central Coastal Counties reached its lowest levels in November, driving prices up and home buyer confidence down.

Home sales declined in San Luis Obispo County for the fourth straight month as low inventories, and rising prices discouraged buyers. In Santa Barbara County, families who lost their homes for fire will see home prices soar to keep up with demand. Over 1000 homes were destroyed by fire and more than 250 were damaged.

Santa Barbara County will find that choices are unusually slim and prices are inflated by the lack of supply. Both active listings and new listings are close to five-year lows, according to the November Market Report from Century 21 Hometown Realty.

By the end of November, active listings in San Luis Obispo County were 16 percent lower than they were a year ago and 42 percent lower than they were in November 2013.  Santa Barbara County reported only half as many homes for sale as there were a year ago. Short supplies in both counties are reducing the time it takes to sell in both counties.

Median sales prices continued to rise in both counties, tieing a record high in San Luis Obispo County, and short supplies curtailed sales volume, which declined by 8.6 percent in San Luis Obispo County and 62 percent in Santa Barbara County from November 2016.

“Burned-out families seeking new homes in Santa Barbara County might wait until the spring sales season opens when there will be hundreds of new listings and hopefully, relief from upward pressure on prices. More homes on the market will provide a greater choice of properties,” said Amy Gallagher, corporate broker of record for CENTURY 21 Hometown Realty.

“Conditions are still very favorable for homeowners who are thinking about selling. Prices are about five percent higher than they were a year ago but prices are expected to moderate next year,” said Ms. Gallagher. In November, CENTURY 21 Hometown Realty participated in 70 home sales worth a total of $35,352,582

 San Luis Obispo County

Home sales unit volume in San Luis Obispo County in November fell for the fourth straight month Year over year unites declined to 8.6 percent from November 2016 and 3.3 percent from October.Total sold dollar volume in the country fell 1.8 percent from October to $125,758,32.  However, sales bested the five-year average by 4.9 percent.

Home prices in the county rose 4.7 percent above October prices and 15.5 percent above prices in 2016. The median sold price for the homes in the county reached $560,000.  Listings took 20 percent longer to sell in November that in October. The closing process continues to be slow and lenders take added steps to comply with government mandates. But the process is improving year over year. The median days to contract, which rose to 40 days, was still 14.9 percent faster than in 2016.

Supplies of homes for sale declined for the third straight month.  Active listings were more than one-third lower than they were a year ago, down by 34 percent, the lowest year over year deficit since January.  Despite rising prices, fewer owners listed their homes.  New listings in November were 38 percent lower than they were a year ago and 7.1 percent below the five-year average. “Normally sellers stay off the market during the holiday – but there is so much pent-up buyer demand that we are encouraging our sellers to get into the market and stay there,” says Gallagher.

In the city of San Luis Obispo, home sales fell 3.9 percent from October and were 3.9 percent lower than they were a year ago. At $619,471, the city’s median sale price was 2.4 percent lower than October and 4.7 percent lower than a year ago. Total sold dollar volume for the city fell by 14.3 percent in November to $31,804,094.  Homes sold in 19 days, two days faster than in October. Prices also fell slightly, to a median of $619,465, 2.4 percent lower than October and 4.7 percent lower than a year ago. Active listings were 42.2 percent below the five year average for the city, and the city recorded only 27 new listings in November, down 31.4 percent from the five-year average.

In Atascadero, sales increased 11.1 percent from October but were also 11.1 percent lower than a year ago.  Prices rose 16.1 percent over 2016 and ended the month1.8 percent lower than they were in October.  The median sold price fell to $473,750.  Homes sold in only 27 days, 40 percent faster than last year.

Sales in Arroyo Grande rose 5.7 percent over October and ended the month 39.6 percent above 2016; Total sold volume rose 39.6 percent to $22,544,125.  Prices also rose by 4.6 over last year but fell 18.5 percent from October. New listings in Arroyo Grande were 53 percent above the five-year average, and active listings trailed the average by 23.8 percent.

Local market data and listings for San Luis Obispo County communities are available at  . , 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

At the end of November, supplies of homes for sale in Santa Barbara County were 50 percent lower than they were a year ago at this time, making house hunting difficult for owners who lost their homes to fires. New listings were also weak, 54.9 percent below the five-year average.

November sales in Santa Barbara County improved slightly on a monthly basis but still trailed last year by 62 percent. The county’s median sold price rose to $387,000, up from October but 5.6 percent below a year ago. Total sold volume for November fell to $44,193,004, 26.1 percent lower than October.  Homes sold faster in November than October by 19.5 percent, from 40 to 37 days.

In Santa Barbara city, sales fell 14.3 percent from October and ended the month 50 percent below last year. Total sold volume for November declined by 7.2 percent to $12,288,000.  On a small number of sales, the city’s median sold price soared 112.6 percent from October to $1,431,500.  Homes sold in 86 days, 14 percent faster than in October.

In Santa Maria, home sales rose 14.9 percent over October, but still trailed 2016 by 49.1 percent; Total sold dollar volume fell to $21,863,600, down 5.6 percent from October.  Prices fell 4,4 percent, and the city’s median sold price dropped to $382,500.  Active listings were down 60 percent from the five-year average.

Local market data and listings for Santa Barbara County communities are available at  Ballard, Guadalupe, Lompoc, Los Alamos, Los Olivos, and Solvang.

 

November Home Sales

San Luis Obispo County (red) and Santa Barbara County (blue))

November sales

 

November Home Prices

San Luis Obispo County (red) and Santa Barbara County (blue)

 

November prices

 

About Century 21 Hometown Realty

CENTURY 21 Hometown Realty is the leading real estate firm on the central coast. Since 1947, it has supported the needs of home sellers and buyers throughout California’s Central Coast region with 19 branch locations in San Luis Obispo and Santa Barbara. Our offices cover the California Coast from Paso Robles in the north to Ventura County in the south.

We offer specialty services including Luxury Real Estate, Agricultural and Ranch Real Estate, Vineyards, Ocean Front Real Estate, Commercial Real Estate, and Residential Real Estate.  Our agents have a keen focus on these areas and multilingual and generational expertise. Visit our website at C21Home.com  to see our California listings and our office locations.

 

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