September 2023 Real Estate News

{original post 9/13/2023}

Hello! Thanks for tuning in to this month’s newsletter. It’s our goal to bring valuable real estate content and local updates to you, so we hope you enjoy it! 

In this e-newsletter, we will dig deep into exciting real estate metrics, share about beautiful custom sculpture pieces on the Central Coast, and of course, discuss the impact of mortgage rates!

The Schwaegerle Team strives to educate and empower all people on the ins and outs of real estate, so thank you for tuning in and following the team on social media!

Real Estate Metrics

Ladies and gentlemen, let's dive into the exciting world of real estate metrics! Today, we are going to take you on a journey to explore various factors that can greatly impact your buying or selling experience. So, buckle up and get ready for some enlightening information.

Firstly, let's start with the Months Supply of Inventory, which currently stands at 1.92. This metric indicates how long it would take for all the available homes on the market to be sold if no new properties were listed. With a relatively low supply, it suggests a strong seller's market, where demand outweighs the number of homes available. This scarcity can lead to increased competition and potentially drive up prices.

Now, let's consider the 12-Month Change in Months of Inventory, which shows a decrease of -5.88%. This change signifies a shrinking inventory over the past year. Such a decline can be caused by various factors such as increased demand or limited new construction. As a buyer, this data indicates that the market has become even more competitive, making it crucial to act swiftly when you find a property you love.

Moving on, we have the Median Days Homes Are On the Market metric, which is currently sitting at just 11 days. Yes, you heard that right, only 11 days! This astonishingly low number implies that homes are flying off the shelves faster than ever before. As a seller, this means that your property has the potential to be snatched up in a short period, while as a buyer, it emphasizes the need to be proactive and prepared.

Next, let's talk about the List to Sold Price Percentage, which stands at an impressive 100.1%. This metric indicates that, on average, homes are selling for slightly more than their listed price. As a seller, this is fantastic news as it suggests a strong market where you have a good chance of receiving a favorable offer. However, as a buyer, it's essential to be aware of this trend and be prepared to potentially offer more than the listed price to secure your dream home.

Lastly, we have the Median Sold Price, which currently stands at $825,000. This figure represents the middle point of all the sold prices in the market. It's essential to note that this is just a median, and prices can vary significantly depending on location, property type, and other factors. Nevertheless, this number gives you a ballpark figure to gauge the market's overall price range.

In conclusion, these real estate metrics paint a fascinating picture for both buyers and sellers alike. With a low supply of inventory, a shrinking market, homes selling at lightning speed, and prices slightly exceeding their listing price, it's clear that we are currently in a fast-paced, competitive market. Buyers, be prepared to act swiftly and potentially pay a little extra, while sellers, the market is in your favor, but it's still crucial to price your property strategically.

Remember, real estate is a dynamic industry, and staying informed about these metrics can significantly benefit your buying or selling experience. So, keep your eyes on the market, stay engaged, and make the most informed decisions possible. Happy hunting and selling!

Shattered Glass Sculptures

Few materials glisten and excite the eye as much as glass and crystal. As light bends through its contours, glass speaks to us in a different, sparkling language. Jennifer Stang Eickemeyer, a local artist living in Atascadero, combines her captivation with the unique quality of glass with her deep love for nature, by using the enrapturing material in its raw, broken state to create one-of-a-kind sculptures of animals and natural subjects.

For her, the piece de resistance is when she observes colorful reactions bubbling forth from people as they interact with her imaginative art. When viewers realize that the sweet, graceful movement of her sculptures is captured by dangerous, formidable glass, emotions are tangled and heightened! For Jennifer, this is what art is all about. These unique, provocative, museum quality pieces can be purchased as is or can be commissioned to immortalize a beloved family pet to enhance your home, touch your heart, and/or make an unforgettable gift. Jennifer can be contacted through her website or by phone at 805-540-4798.
 

 
Will rising mortgage rates cool off a hot housing market?

One of the most common questions we hear is this one: Will rising interest rates cause prices to drop? This question is very nuanced because the underlying question is about affordability. Affordability is determined by three things: Prices of homes, interest rates, and wage earning growth. As you can see in the data below, home prices had taken a dip in mid 2022 due to the rising rates. Since then, prices have rebounded, and we are seeing homes sell for only 2.3% less than they were a year ago. Many housing experts have revised their projection for the year. 
 

Let’s look at the 1970s as a case study for high interest rates and their impact on housing prices. Inflation was running rampant through the US economy in the 1970s due to an excessive printing of money. Sound familiar? Oh yeah, that’s what the government has been doing now, too.
 

In the 1970s, the median home price rose from $23,000 to $55,700, an average annual gain of 9.9%, which shows the great wealth building potential of real homeownership. This took place while interest rates were in the 7-9% range. By the start of the 1980s, the Fed raised interest rates up to 18%. Real estate prices still continued to climb. What we can learn from this is that interest rates alone do not cause prices to fall. Due to the shortage of homes, the strong buyer demand, and rising wages, people are still purchasing homes. 

A much better solution would be building more starter homes so people on the sidelines can get in, start building equity, and trade up.

Coming Soon
3 bed/2 bath home in Los Osos - Stay tuned for final price!
3 bed/ 2.5 bath home in Cambria - $899,000

Current Active Listings 
1906 Ybarra Ave - $689,000
1680 Main St #32 - $180,000

Current Pending Listings
2524 Augusta St - Listed for $899,000
2700 Cienaga St #26 - Listed for $349,000
1454 Pineridge Dr - Listed for $635,000

Just Sold
155 Vista Circle - $1,480,000
867 Humbert Ave - $610,000
587 Yreka Dr - $556,700
7275 Nonpariel Rd - $500,000

Let's Be Social
Thanks so much for reading our newsletter this month! We want to hear from you! Please let us know how we can support you on your real estate journey. Whether you just purchased a new home, want to explore home-buying options, are curious about what your property might be worth, or just want to know more about the market, please reach out! 

@theschwaegerleteam
@closeinslo
@your.realtor.slo

You can also follow us on YouTube and Facebook for more updates throughout the month.
 

The Schwaegerle Team donates 2.5% of all transactions to Dream Makers. Thank you for helping make dreams come true for terminally-ill adults in SLO County!