New September Listings Hot Off the Press!

Click here to view our September Newsletter!

Tight housing market forces home buyers in SLO County to leave their priorities at the door

When Samantha Meyers and her family started their search for a new house during the remote work boom of the pandemic, they thought they’d be living in a different city from the one they ended up settling in.

Meyers said she originally intended to move from the Bay Area to San Luis Obispo, but ended up purchasing her home in Arroyo Grande instead.

“We loved the Sinsheimer neighborhood in SLO, and unfortunately it just didn’t end up working out — there weren’t homes with the size that we needed for our family and the space needs that we had, so we ended up looking in Arroyo Grande,” Meyers said.

Her family also had to compromise on price, as she had to offer around $75,000 more than the asking price to purchase the property.

Meyers’ story is becoming more common as the tight housing market in SLO County and elsewhere is forcing home buyers to compromise more than they might normally on the specific demands of their homes-to-be, according to a new report from Anytime Estimate.

In fact, the vast majority of home buyers — 80% — are scaling back expectations on the priorities in their housing search in some way, the report said.

“Most people are having to see the purchase of a home as a project, and realizing that they need to maybe live there a little while and then get some of the updates,” said Christa Lowry, a Coldwell Banker Premiere Real Estate Realtor in Pismo Beach.

Lindsey Harn, a Realtor for Richardson Properties in San Luis Obispo, said that’s not necessarily unique to the current market conditions or location, which she said is cooling slightly.

“For a lot of buyers, especially if it’s their first or second purchase, compromises are involved just because what their dollars get them and what their dreams are aren’t necessarily in line,” Harn said.

Harn said that in much of SLO County, homes only average seven to 10 days on the market, giving buyers a small window to make a decision.

“I typically would tell people if (the home) meets about 70% of their needs, wants and desires, to strongly consider it and to maybe consider driving by it a couple of different times during the day, (and) walking around the neighborhood to get a feel,” Harn said.

Amenities such as the type of kitchen, flooring and finishes, Lowry said, are of less concern than simply getting a house in the first place. Plus, those issues can be addressed through remodeling later.

Sometimes, the competition is so tough, buyers have to give in on more prominent features of the home, like its number of bedrooms.

None of those factors seem to deter buyers, who are now looking for available housing rather than housing that fits their specific needs, Lowry said.

That being said, Lowry noted that remodeling a fixer-upper is also more of a challenge now than it once was.

“The cost of goods is so high right now that people are having a hard time with their fixer-uppers because they can’t update it as much as they want,” she said.

Harn advised first-time buyers to avoid fixer-uppers that require larger investments of time, labor and money, particularly once the cost starts exceeding $40,000 to $50,000.

Cosmetic upgrades like paint or replacing countertops are much more feasible for first-time buyers, Harn said. Further complicating the remodeling process, Lowry said, building goods such as lumber are in low supply, raising their price. The price of building goods is also elevated by inflation, which is still affecting the construction industry, she said.

Those supply chain delays limit what buyers can do with a fixer-upper, Lowry said.

If a bathroom used to cost around $15,000 before the current period of inflation and supply chain problems, it now costs closer to $22,000 or $25,000, she said.

MORE BUYERS CHOOSING FIXER-UPPER HOMES

The report agreed with Lowry’s experience, as 55% of buyers purchased what they considered a fixer-upper, though 24% of those buyers regretted their decision to buy a home that requires extra maintenance.

“Because they’re just excited to have a home — to be able to purchase a home — they’re willing to give up a lot,” Lowry said.

Younger, first-time buyers in particular — like millennials, who the study found make up 66% of first-time buyers — are more likely to spend more and take larger risks on their first home, the report said.

“We are seeing more and more millennials get into the housing market, and I think it’s a very wise thing for them to do as wealth shifts from Baby Boomers down to the next generation,” Harn said.

These younger first-time home buyers were 8% more likely to compromise on their demands for a new home, the report said, and 22% of all buyers in the survey ended up dissatisfied with their homes.

“After previously buying in ‘normal’ market conditions, repeat buyers were 75% more likely than new buyers to be dissatisfied, but the market left much to be desired among first-timers who struggled to find affordable homes,” the report said.

Lowry said priorities in home buying on the Central Coast differ from the three things the survey had found most buyers prioritized: a good neighborhood (50%), an affordable home (45%) and short commute (39%).

In her experience with buyers here, Lowry said, home-buying priorities focused more on the home’s floor plan, location and potential for future investments.

“Can we update it and sell it for more?” she said. “Does it have enough room or land to do what we’d like to do with it? Could we build on an ADU (accessory dwelling unit) or extra room that we could use as income potential?”

Harn said with the advent of widespread remote work, concerns over length of commute are lessened, while access to school districts and outdoor space are more relevant to the average SLO County home buyer.

That was the case for Meyers, though she said her home in Arroyo Grande has met her needs so far.

“Even though we thought we compromised to begin with, I think that where we ended up was actually the optimal solution for us,” she said.

This story was originally published SEPTEMBER 07, 2022 5:00 AM by JOHN LYNCH

FOR IMMEDIATE RELEASE 

Contact: Lindsey McConaghy, Monde PR

Phone: (805) 471-0165

Email: lindsey@mondepr.com

Lindsey Harn of Richardson Properties 

Featured in "Designing Spaces™" TV Program 

[San Luis Obispo, CA August, 2022] Richardson Properties, San Luis Obispo’s leading real estate brokerage, today announced that Lindsey Harn has been featured in Designing Spaces™, an award-winning home improvement show airing on Lifetime TV. The segment talked about the benefits of using solar energy to power homes and businesses, and the positive impact on property resale values.

Lindsey was interviewed about her experience installing solar panels at her home in San Luis Obispo with REC Group. “We spent some time analyzing my current bills and PG&E usage, and then looked at what I might need in the future to determine how many panels I would need. It was a very thoughtful approach to ensure I have the best experience possible.

“REC then came back with drawings and 3D diagrams so I could see how the panels would appear on the house. I was very concerned with aesthetics so they were careful to place the panels in a way that didn’t ruin the architecture or the look of my home.”

The segment went on to talk about how Lindsey tracks her energy usage. “I have an app I can check to see what the panels are generating, what I’ve done to offset my carbon footprint and how much I’m saving. The technology that allows me to monitor the system has been incredible.” 

Lindsey also talked about available tax credits and resale benefits of using solar energy. “Another reason I got solar was to take advantage of several state and federal tax credits. These actually offset the physical cost of the panels. As a real estate professional I can also attest to the fact that owning your solar panels outright can be a huge value-add on the resale of your home.”   

Last April the County of San Luis Obispo completed its largest solar project to date with ForeFront power. The 1.2 MW ground-mounted solar system was projected to offset 10% of the County’s total energy usage with renewable energy. 

###

About Richardson Properties (www.richardsonproperties.com)

As San Luis Obispo County’s leading real estate brokerage, Richardson Properties | Christie’s International Real Estate, provides innovative solutions and superior customer service through a team of dedicated professionals. The team strives to exceed client expectations while positively shaping its local communities. 

As an exclusive Luxury Portfolio International® brokerage and member of Leading Companies of the World®; Richardson Properties offers an incomparable level of service and global visibility under brands that stand for trust, discretion, and excellence.

Leading the Way in Residential and Luxury Home Sales on the Central Coast.

New August Listings Hot Off the Press!

Click here to view our August Newsletter!

New July Listings Hot off the Press!

Click here to view our July Newsletter!

FOR IMMEDIATE RELEASE 

Contact: Lindsey McConaghy, Monde PR

Phone: (805) 471-0165

Email: lindsey@mondepr.com

Lindsey Harn Group of Richardson Properties 

Named Top 1% of Real Estate Professionals in the US 

[San Luis Obispo, CA June 30, 2022] Richardson Properties, San Luis Obispo’s leading real estate brokerage, today announced that Lindsey Harn Group has been named in the annual RealTrends + Tom Ferry The Thousand list of America’s top 1,000 real estate teams. The group ranked #56 in the Small Teams category by sales volume. The group was also ranked #22 in California in the small teams by sales volume category in the 2022 REAL Trends + Tom Ferry America’s Best Real Estate Professionals list. 

RealTrends + Tom Ferry The Thousand, is an annual, national awards ranking sponsored by RealTrends—the Trusted Source—and Tom Ferry International coaching. Designees are recognized as the top .07% of more than 1.4 million licensed Realtors® nationwide.

RealTrends America’s Best Real Estate Professionals ranks over 14,500 residential real estate professionals solely based on their excellence in real estate sales during the calendar year 2021. All production numbers are independently verified by a third party to ensure accuracy and report integrity. This group of highly successful real estate sales agents represents the top one percent of all real estate practitioners in the United States.

“It’s wonderful to have our work recognized, especially on both the national and state level,” said Lindsey Harn, Realtor at Lindsey Harn Group and Richardson Properties. “I’m so proud of the team and what we’ve achieved and am grateful to our loyal clients for entrusting us with their real estate needs.”

“Congratulations to Lindsey and her team for being nationally recognized as the top one percent of real estate professionals,” said Chris Richardson, President of Richardson Properties. “This is particularly impressive given the size of our market place and that the Lindsey Harn Group is smaller than the majority of teams that made the list - it’s an outstanding achievement.” 

A complete list of the designees is available online at www.realtrends.com.

###

About Richardson Properties (www.richardsonproperties.com)

As San Luis Obispo County’s leading real estate brokerage, Richardson Properties | Christie’s International Real Estate, provides innovative solutions and superior customer service through a team of dedicated professionals. The team strives to exceed client expectations while positively shaping its local communities. 

As an exclusive Luxury Portfolio International® brokerage and member of Leading Companies of the World®; Richardson Properties offers an incomparable level of service and global visibility under brands that stand for trust, discretion, and excellence.

Leading the Way in Residential and Luxury Home Sales on the Central Coast. 

Will SLO County housing prices return to normal?

SLO COUNTY REALTOR EXPECTS PRICES TO CONTINUE RISING

Richardson Properties Realtor Lindsey Harn agreed.

“I don’t see housing prices dropping,” said Harn, who’s been selling homes in SLO County for 12 years.

“One of the nice things about the Central Coast is we are a small enough market and we are kind of insulated,” Harn said. “So if there were a dip in prices to an extent, there’ll be a whole set of new buyers looking to fill in.”

With more people working remotely, many home buyers are flexible when it comes to location, she added.

Harn said she used to see prospective home buyers in their 50s and 60s “doing an early retirement where they’d earn the right to work from anywhere.”

“They’d come here (to SLO County) for the lifestyle and maybe commute once a month for meetings,” the real estate agent said.

“Now we’re seeing people of all ages” making that move, she said. “We’re seeing more and more people still want to have that choice to live and work from anywhere.”

Developers still want build new homes, Harn said, but many are worried about keeping down the costs of existing home building projects. That, in turn, makes developers less likely to undertake the risk of starting building projects in a volatile market.

Bednarek’s assessment of the Federal Reserve’s anti-inflation measures, which include raising its benchmark interest rate by three-quarters of a percentage point, similarly indicates a shortage in available homes for the foreseeable future.

Along with continuing price increases and a shortage of available homes, both Harn and Bednarek predicted that mortgage rates were likely to continue rising from the current rate of 6%.

Bedrarek said this is due to the Fed’s interest rate hikes, which directly affect mortgages far more than they do, say, savings accounts.

Despite higher mortgage rates, Harn said getting into a home should be a top priority for buyers, with the knowledge that these rates could decline in several years.

“There’s a funny meme going around online: ‘Marry the house, but date the interest rate,’ ” Harn said. “Interest rates aren’t forever.”


This story was originally published July 1, 2022 5:00 AM.

New June Listings Hot off the Press!

Click here to view our June Newsletter!