Secrets of the Spring Real Estate Forecast Revealed for You
I have been fielding lots of questions about what's going to happen with real estate prices along the California Central Coast this spring. Will prices go up or down? The truth is that there is no crystal ball to peer into, but I can examine two opposing trends and let you know what to expect from them.
One trend is that prices have been going up lately because of a current shortage in inventory. A lot of homes are selling quickly, with multiple offers, which leads to a shortage in inventory. Pismo Heights, for example, only has 3 or 4 houses on the market right now. That is helping to keep prices high.
However, though inventory is low right now, there is an extensive amount of building occurring in the area with settlements popping up here and in San Luis Obispo. This means an increased inventory of highly-desirable, brand-new homes. Additionally, more people put their homes on the market in the spring. These two factors may lead to a sudden increase in inventory, which could lead to lower prices.
To throw another wrench into the problem, interest rates will likely be unpredictable. If they go up, buyers will leave the market or won’t be able to afford as much, resulting in another decline in prices.
That said, why wait? As we enter a very unpredictable spring, now is the time to put your house on the market. For the immediate future, we expect to continue to experience low inventory, higher prices, and great demand. This demand should remain steady for a good length of time. The Central Coast has been a destination for home buyers, business owners and vacation seekers for many years. Thanks to the improving economy it seems that trend will continue to remain strong for the foreseeable future and help the overall property values continue to increase.
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