Central Coastal Homes Sell at Record Pace as Supply Shortage Continues

June Prices Remained Strong, but Sales Declined in San Luis Obispo

and Santa Barbara Counties

Arroyo Grande, CA – June 18, 2017─ Homes flew off the shelves in San Luis Obispo and Santa Barbara Counties last month as demand remained strong despite rising prices and chronically low inventories of homes for sale that are so serious they depressed sales in California’s Central Coastal Region, according to the June Central Coastal Market Report from Century 21 Hometown Realty.

Homes in San Luis Obispo County spent a median of only 19 days on market before receiving contracts from buyers while Santa Barbara homes sold even faster, at 14 days on market.  Both counties set five-year records for time on market.

Supplies of homes for sale in both counties remained far below last year’s levels and helped to keep prices near peak levels.  Despite strong prices in both counties and record-fast time on market, new listings in s new listings were lower than in June 2016 and could not keep up with demand.  Lack of choices and rising prices combined to frustrate buyers and June sales fell significantly below May’s pace in both counties.

“The sellers’ market in the Central Coastal is stronger now than it was two or three months ago when prices were hitting all-time peaks.  Now homes are selling so quickly that qualified buyers can’t find homes to buy.  Not only are prices near all-time highs, in May and June, but new listings are also priced significantly that the current media sales prices in both San Luis Obispo and Santa Barbara counties. Sellers have been getting nearly 100 percent of their listing prices.

“However, the unexpected decline in June sales could signal a fall-off of demand in the balance of the summer. Owners who are thinking of taking advantage of these extraordinary market conditions should act now or risk less favorable conditions in the fall and winter months,” said Amy Gallagher, corporate broker of record for CENTURY 21 Hometown Realty.

San Luis Obispo County

June home sales in San Luis Obispo County fell 11.1 percent from June 2016, and 5.8 percent from May, resulting in a total sold dollar volume of $221,356,814 for the month.   Listings spent a median of only 19 days on market before receiving a contract,  a five-year record.

Supplies of homes for sale have increased steadily, from 1057 in February to 1255 in June, but they are still 11.5 percent below last June and 38 percent lower than June 2014, the first year of the three-year inventory drought that has plagued real estate markets nationwide. New listings in June were 9.4 percent lower than last June and 11.4 percent fewer than the number of new listings in May.

Prices in San Luis Obispo County fell slightly from the previous month were still significantly higher than a year ago.  The county’s median sold price of $519,000 was 8.1 percent higher than a year ago and 1.8 percent lower than in May when the county’s median sales price broke a five-year price ceiling.  Prices may continue to escalate, as the median price for new listings in the county reached $608,000 in June.

Strong demand and tight supplies resulted in a five-year record for time on market.  The median time for listings to receive contracts fell to 19 days.  A year ago, in June 2016, the median time on market was 25 days.

In the city of San Luis Obispo,  sales fell 25.4 percent from May and were 33.3 percent lower than a year ago.  Total sold dollar volume for June was $31,594,450.  Prices rose 8 percent from May to a median sold price of $603,750 11.9 percent higher than a year ago.  Active listings were 16 percent below levels of a year ago, and new listings were 9 percent higher than in June 2016. Home sold in 16 days, which was higher than the median of 9 days in May.

In Atascadero, sales fell 6.7 percent from a year ago and 10.5 percent from May.   Total sold dollar volume dropped to $$18,691,599.  The city’s median sold price reached $429,000,250, a 5.4 percent over sales a year ago and 10.3 percent higher than May.  Homes sold in only 16 days, 20 percent faster than in May.

Local market data and listings for San Luis Obispo County communities are available at  Arroyo Grande, Atascadero, Avila Beach, Cambria, Cayucos, Creston, Grover Beach, Los Osos, Morro Bay, Oceano, Paso de Robles, Pismo Beach, San Luis Obispo, Santa Margarita, San Miguel, San Simeon, Santa Ynez, Shandon, and Templeton.

Santa Barbara County

Sales in Santa Barbara County declined nine percent from May and helped to push year-over-year sales down 11.8 percent in May.  June marked the third straight month that sales in the county were far below the five-year average for the month.  However, the total sold dollar volume of June sales rose slightly from May to $33,.093,319

1At $379,500, the median price for homes sold in June fell 9.6 percent from May but was still 4.3 percent higher than last June and well above the county’s average five-year median price of $325,405.  Prices will likely continue to rise next month.  At a median of $477,777, new listings in June are 10.4 percent more expensive than in May.

June Home Sales

San Luis Obispo County is red, Santa Barbara County is Blue

June Home Prices

San Luis Obispo County is red, Santa Barbara County is blue