By Jaime Silveira
BRE #01706045
If you are like me, you have come to accept that interest rates won’t be dropping to pre-pandemic levels anytime soon. The seasoned agents in my office concur and state that most of their clients have come to the same conclusion. Still, they are in constant communication with their clients to ensure a dialogue that provides value when they are ready to make a real estate move. Though disconcerting, keep in mind interest rates are variable and there is hope that they will go down. If you are looking to make a real estate move, notwithstanding the rates, let’s look at inventory. Inventory is another one of the key puzzle pieces within a real estate market that can help or hinder a move.
For San Luis Obispo County, the California Association of Realtors has tracked active inventory from 2018 through 2024. The Inventory Report is meant to provide its REALTOR® members, or their clients, with a trend, as well as a current snapshot of the inventory of homes available for sale in their local area of business in the state of California.Reports are updated with last month’s data by the third week of the current month. Please see car.org/marketdata/interactive/inventory.
By the end of the 1st quarter of 2024, we continue to see a positive growth in inventory for most of San Luis Obispo County, with a couple of cities in the negative. Countywide, we are above what the state growth percentages indicate. Looking at our North County cities, Atascadero is showing an impressive 66.7 percent year-to-year growth, Paso Robles is at 36.5 percent, and Templeton recorded a 25 percent growth — all of which are above the statewide growth indicators.
If you are a numbers fan, the interpretation is the tricky part and the graph, talking about percentage growth. The actual numbers for sale show Paso Robles with a March inventory of 71 homes, Atascadero with 30, and Templeton with 20. The economics of it all are the same — you can’t buy what isn’t on the market.
The majority of the homes listed for sale in Atascadero were between $500,000 and $1,199,000, with the median price at $922,000. That is a wide price range and again, interpreting the numbers is important. Atascadero properties vary greatly from the size of the home to the acreage of the property, which can account for the large price span of homes available on the market. There are very few planned development communities in Atascadero, so homes are more unique and generally on larger parcels of land compared to the other towns in North SLO County. Paso Robles shows the bulk of the 71 in the same $500,000-to-$1,199,000 price range with some outliers in the lower $300,000-to-$500,000 range. Paso Robles also has some higher-priced homes on the other end of the range as well. The median price of Paso Robles is $950,000. Paso Robles has always had a very diverse range of homes due to the area that is included when talking about Paso Robles homes. There are many planned developments, homes on the outskirts of town on larger lots, and homes out at Lake Nacimiento that are included in the Paso Robles numbers and attribute to the wide price range found.
With most of the inventory above $750,000, Templeton’s actual numbers are lower compared to Atascadero and Paso Robles but are above the statewide growth percentage, though less than the countywide figures. Templeton is a smaller town but has always historically captured the higher price range due to larger homes on larger acreages plus the many vineyards. Additionally, since there are fewer homes available, it creates a higher demand.
So, what does this mean for the first-time homebuyer? Or for the repeat buyer? Well, it’s a bit of a good-news-and-not-so-good-news situation. The good news is that our inventory on the Central Coast continues to grow. The number of homes coming on the market means there are more choices for potential home buyers to choose from. The not-so-good news: If you need a loan to purchase your next home (let’s be honest, most of us do), then the interest rate is going to be on the higher side. But home ownership is a long-term goal which means you’ll have the opportunity in the future to refinance and get a lower interest rate all the while you’re building equity in your home. As I always tell my clients, purchasing a home is a personal decision, only you can decide if the time and situation is right for you.
ATASCADERO NEWS MAGAZINE
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