Yesterday, an executive at Bank of America predicted another 15% drop in prices in California. So, how is the Central Coast market doing so far in July??
As of a few minutes ago, we’ve had 283 New Listings, 417 Price Changes, and 207 Pendings. About half of the Pendings were in Santa Maria/Orcutt and the median price for the Pendings is $246,450. So we’re seeing pretty strong sales activity in Santa Maria/Orcutt.
The amount of Price Changes so far this month is higher than what we’ve seen in previous months. This does point to homeowners dropping prices, just don’t know if they are homes that were overpriced for what the comparables said or homes needing to lower price to compete against foreclosures in the neighborhood.
I did look at inventory levels in some SLO County cities. At the beginning of the month, there were a few cities that had really high inventory levels and as of today, the levels remain high. San Luis Obispo is at 225 units, which matches it’s highest level it had as of May 1st, 2008 and over 10% higher than last July. Templeton and Morro Bay also continue to grow inventory. Templeton is now at 116 unit and Morro Bay is at 139, both high water marks for the last two years. The other SLO cities don’t have high levels of inventory compared to the last 2 years.
It’s hard to tell what’s going to happen in our market. While inventory is high in some cities, the Months of Inventory has been decreasing in most cities which speaks to a more active market. We have seen a price decline in median home prices in Santa Maria/Orcutt and other SLO county neighborhoods where a foreclosure pops up in. With inventory so high in some cities, it won’t take much of a slowdown in sales activity in those cities to really put additional price pressure on those homeowners wanting to sell.
What I can suggest is to keep looking at the many different pieces of info I track and report on the http://www.slowatch.com/ site, on http://www.slocountyhomes.com/, and this blog. I’ll do my best to provide insight into what’s going on in the market.