It left just as fast as it came. Our inventory is once again bordering on our yearly low. Currently, there are only 52 Active Single Family Residences in San Carlos. You will recall from other blog articles that we floated around the 50 mark for most of the winter and actually shot up to 71 Active Single Family Residences about a month ago. While it is the middle of summer and traditionally the inventory in San Carlos lags a little in July, unless more properties come on this week our inventory could hit a new yearly low. I can tell you there is a very good chance that three San Carlos properties will go Pending in the next couple of days. Without new properties coming on by the weekend we will be sitting at 49 Active homes which is incredibly low, even for July.
Why does San Carlos continue to produce low inventory when some peninsula towns have high inventory?
(1) Perception. There is a perception that selling in our current market is a tough proposition. Granted, we are not in the 2005 market, but San Carlos has a very healthy market. For a more detailed discussion on San Carlos current market conditions please click http://sancarlosblog.com/archives/167
(2) Where Will We Go? Here’s the thing…..many who are selling their home in San Carlos do not want to leave San Carlos. One of the most common scenarios I receive from sellers is, “We really want to sell our house, but we want to stay in San Carlos and we have not seen anything worthwhile in our price range.” The reason potential sellers are holding onto this concern is because there is some truth to it. Our inventory has a domino effect. There is very little at the entry level in San Carlos because there is very little for the entry level to get excited about when making a move. The same holds true with the mid-range trying to move up to the higher range……you get point.
(3) Economic Concerns. Sellers looking to make a move would most likely be taking on a higher property tax base. Many are reluctant to take on any additional expenses with gas prices, general economy concerns and a presidential election looming in November. Most sellers who are looking to move up in San Carlos will most likely end up doubling their property taxes.
Our low inventory and a steady supply of buyers should keep our market healthy through the summer months. Properties that are not trying to take advantage of 2005 market conditions should continue to move in San Carlos.