San Luis Obispo Ca Real Estate

San Luis Obispo County January 2007 Housing Market update

Those looking to buy a house in San Luis Obispo County in 2007 are expected to have a lot to choose from, while those trying to sell may have to lower their prices to stay competitive.The softening housing market of 2006 is expected to continue into 2007, real estate experts say, though it’s unknown just how drastic or long-lasting the slowdown might be. Some economists predict housing prices will rise again next year.

An economic forecast created for the county by UCSB economist Bill Watkins projects the median home price for 2007 to be $597,200, up from $585,000 in 2006. The 2008 median price is expected to rise to $626,700.

The significant thing to look for in 2007 is going to be to watch inventories, If there are low inventories, then a little flutter of activity could spin the whole thing up again.In 2006, homes took longer to sell than in previous years, leading to a large number of homes on the market. In San Luis Obispo County, 216 homes sold in November A A- a drop of 38 percent from the previous year when 351 homes sold, according to real estate research firm DataQuick. In October, 244 homes sold. From Jan. 1 to Dec. 27 of this year, 2,859 homes sold on the multiple listing service.Unlike DataQuick numbers, that figure does not include homes sold by the owner or tract homes that did not use a real estate agent.During the same time in 2005, 3,809 homes were sold. That’s a 25 percent decline in home sales.

The high inventory may have led to the median home price A A- the statistical point where half the homes sold for more and half sold for less A A- dropping for the first time in eight years. September marked the first time it had dropped since December 1998. It decreased again in October and November.

The median home price in November, the latest month for which data is available, was $512,000, according to DataQuick. That’s a decline of 8.4 percent from November 2005 and down from October’s median price of $545,000.

With more homes on the market, those who need to sell their home fast because of a new job, divorce or other need may have to lower their price.Buyers should be able to negotiate a little harder to what they think is a good price,Sellers can expect a lot of competition. Put it on the market … at a good price, not a pie-in-the-sky price.

That’s not to say prices are expected to drop drastically. I don’t think we’re going to see huge price reductions, It’s sort of a nontraditional marketMany of the people buying in the county are bringing equity earned in other parts of the state and are able to make huge down payments and afford higher-priced homes. The slowdown in 2006 was a normal one that’s expected to turn around again.Generally, 2006 was not a banner year,But if you go back and look at the last 10 years, it wasn’t that bad.