The Central Coast Real Estate Market is in great shape, with one problem. Our inventory counts are down dramatically. Over the last 5 years, we have averaged an inventory of 3400 homes for sale at any given time. Now we are in the 1500 range. Mouse over the lines on the map below to see the changes in listing inventory over the past 5 years.
What this really means to you is that between now and next year, prices will continue to rise as a result of fewer listings. Common wisdom would lead you to believe that the reason why people are not selling is because they do not have equity in their home. Nothing could be further than the truth. Only 14% of homeowners in the CCRMLS region currently show negative equity. The number of distressed properties county wide has dipped below 100 according to information from CoreLogic. A distressed property is either bank owned, in the process of foreclosure, or has been sent a notice of default. These are really low numbers.
Take a look at the effect of low inventory has on the market. We have continued to sell just under 600 homes a year, but you see a significant spike in 2013 corresponding to the drop in inventory. Take a look at the inflection point in March where inventory dropped down into the eleven hundreds and the price spiked up nearly 80% the corresponding month.
If you want to see pricing trends in your town, contact a Century 21 Hometown Agent or visit your Hometown real estate page at the bottom of the home page at Http://c21home.com