August 24, 2010

Opportunity May Be Knocking

Today, the National Association of Realtors (NAR) reported that sales for existing single family homes fell by 27% during the month of July. In our local area, we can confirm this by looking at the “24 Hour Market Watch” on our Multiple Listing Service which covers all of San Luis Obispo County and Northern Santa Barbara County. During the last 24 hours we have added 35 new listings, while selling only 21 listings. So it looks like our inventory is on the rise. This has been the case on almost a daily basis for a long time. In addition, during the same 24 hour period we have had 42 price reductions. Just what you would expect as the inventory grows.

Wow, this doesn’t sound too great, but this may not be all bad news. Opportunity may be knocking. With slower sales, increasing inventory, and price reductions, this could be a great time to purchase. Interest rates remain at historical lows, with 30-year fixed rates below 4.5%. Larger inventory means more choices for buyers. Price reductions mean that sellers are more willing than ever to negotiate price and terms. To paraphrase the Honda commercial, Mr. Opportunity may be here knocking on your door.

Your Questions and comments are always welcome.

Posted by: Larry Smyth