Based on homes sold listed on the Central Coast MLS statistic, residential, SFR Sick Built, Santa Maria/Orcutt, sold between 12/1/08 to 12/31/08, supports many compelling reason to purchase in Santa Maria now, rather than later.
Between December 1, 2008 to December 31, 2008 there were 143 homes sold, a low $109,000, high $820,000, median $250,000 and average $259,084. Fifty-six percent sold between 0-30 days, 18% sold between 31-60 days, 7% sold between 91-120 days, and 1.4% sold between 91-120 days and 17% sold 120+days. Note, 56% sold of the 143 sold in less than 30 days and 74% sold in less than 60 days in December 2008.
In comparison, a year prior, between December 1, 2007 to December 31, 2007 there were 64 homes sold, a low $184,000, high $1,770,000, median $327,000 and average $370,873. Thirty-seven percent sold between 0-30 days, 12.5% sold between 31-60 days, 11% sold between 91-120 days, and 11% sold between 91-120 days and 28% sold 120+days. Note, 37% sold of the 64 sold in less than 30 days and 50% sold in less than 60 days.
Yearly comparison between December 2007 and December 2008, homes values for residential, stick build homes in Santa Maria/Orcutt based on median price homes sold decreased from $327,000 to $250,000, a decrease of $77,000 or 24% drop in sales price. Based on yearly December comparisons, more than 50% or 1 out of 2 homes sold the first 30 days in December 2008, compared to 37% of homes sold the first 30 days in December 2007.
A month to month comparison from December 2007 and December 2008, reveals homes sold faster and at a lower price. As price continues to decrease, sales will continue to be brisk. Foreclosed properties, short sales, and an abundant inventory coupled with low 5% interest continue to fuel buyer demand and downward price pressure. Home prices continue to decrease in most area, albeit, at a slower pace than in previous months. Median price homes at $250,000 is attracting buyers and investors as affordability lures buyers, many priced out of the market 3 years ago.
The median price of $250,000 in December 2008 is a bargain. For instance, home prices in Santa Maria have retreated in price in some areas between 40% and 50% from the apex of the seller’s market in 2005. This 50% discount or purchasing a home for .50 cent to the $1.00 makes sense to purchase, especially when the number produces a positive cash flow for investors and matches comparable rent expense in the area. Why rent when you have the option to purchase for about the same price?
Are you waiting for the market to bottom out? Think twice about waiting because buyers have the ingredient for a favorable purchase. Interest rates at low 5%, inventory selection, decrease competition, favorable buyer market, favorable buyer terms, makes sense to purchase now, instead of later. The disadvantages of waiting include possible rate increases and missing discounted prices.
As the market shifts, buyers on the fence will try to enter the market realizing they better buy now before prices increase. At this stage, pent-up buyer demand will enter the equation and place upward price pressure and increase offers. Multiple offers will not benefit the buyer. Keep in mind sellers are lowering prices because of the current market. Rest assured, sellers will not sell at a discount if they do not need to and will increase price as soon as the market changes.
Compared to San Luis Obispo County and south Santa Barbara County, Santa Maria prices are a bargain. In comparison, Arroyo Grande December 2008 sold properties for residential, stick built median price 3 bedroom 2 baths, 1900 square feet was $610,000. In comparison, Santa Maria December 2008 sold properties, stick built median price home, 3 bedrooms 2 bath 1,541 square feet was $250,000. Homes less than 15 minutes drive north of Santa Maria are selling more than double the price of homes in Santa Maria.
Don’t wait too long. You might regret your decision in the future. If a home meets your price range and life needs, there are plenty of reasons to purchase now, rather than later. As a professional Realtor, I can help you obtain financing and help you find home.
Call Cesar today for a professional, no-obligation consultation at 805.264.7772 or email me at cesarbautista@kw.com.
