Happy March! I hope your transition to life in 2022 has been smooth so far.

 

I want to keep you updated on some of the projections for change in real estate this year — some of which may impact your decisions when considering whether to buy, sell, house, or refinance. The following are national trends. Below that are local metrics I’ve put together so you can gauge the climate of our local market.

 

National Trends: 

·      Prices are expected to remain high in 2022. Fannie Mae expects prices to increase 7.6%. If your clients need to sell, they’ll likely have a strong upper hand.

·      Home inventory is at an all-time low, and rents continue to rise. Fortune recently reported that “the housing shortage has forced many potential buyers to move into rental properties as they look for their next home [...] That option, however, is becoming increasingly expensive.”

·      Mortgage rates are increasing — rates have already risen to 3.55% this year from 2.65% a year ago. That means two things: 1) The refinancing boom is fizzling quickly, and 2) The hike in interest rates further erodes affordability (a 1% change in interest rate has the same impact as a 10% change in mortgage payment).

 

Local Trend in Prices: 

 

Currently, our market is seeing an upward trend.

 

Area	Quarter 1 2021 Median Price	Quarter 1 2022 Median Price	Year-to-Year Change
San Luis Obispo / San Luis Obispo County / CA	$1,020,511	$1,279,374	20.23%
Arroyo Grande / San Luis Obispo County / CA	$940,391	$1,144,489	17.84%
Atascadero / San Luis Obispo County / CA	$658,621	$749,000	12.07%

 

Pricing Note: House values can fluctuate through the seasons. Spring is a different market than the fall; mid-summer looks much different from the end of the year. So in order to get an accurate reading as to whether or not prices have fallen or risen, we use the “year over year” barometer.

 

 

 

 

Local Days on Market:

 

Area	Quarter 1 2021 DOM	Quarter 1 2022 DOM	Year-to-Year Change
San Luis Obispo / San Luis Obispo County / CA	11	7	-36.36%
Arroyo Grande / San Luis Obispo County / CA	12	8	-33.33%
Atascadero / San Luis Obispo County / CA	6	7	14.28%

 

Days on Market (“DOM”) Note: This metric will tell us how long it takes for homes to sell. This number is largely driven by supply and demand. An uptick in interest rates can cause DOM to increase; a drop in unemployment can cause DOM to decrease. All sorts of economic factors can affect this number, and ultimately, DOM affects pricing. When there are low days on market, prices go up; when DOM increases, prices go down.

 

Market conditions are constantly fluctuating. If you would like a market analysis for your own knowledge or for a specific case, I’m happy to provide you with current figures anytime on a complimentary basis. Feel free to give me a call directly at 805-441-7744 or email me at soldbylindseyharn@gmail.com.