Before we begin, we want to express our gratitude to our clients, referral partners, escrow professionals, and extended team. This is shaping up to be my team's most productive year yet, with our goal of helping 25 families buy, sell, and invest within reach.
Thank you to our clients for trusting us with your real estate purchase, sale, and investment goals and thank you to our local partners for helping us deliver exceptional service and results for our clientele.
If you are considering a purchase, investment, or sale this year or next year, reach out. We are here to help you reach your goals confidently and in your desired timeframes.
Thank you!
Joshua Farris | Real Estate Advisor
KW Central Coast | DRE 01921964
SLO COUNTY, BY THE NUMBERS
We had $509 million dollars worth of real estate transactions in SLO County last month, which is slightly down vs last year’s number of $558 million. There were a total of 248 closed sales, which was almost exactly the same in 2024 and 2023. The median price increased for the first time in 4 months to $870,000, supported by some high end sales.
Overall, the market is moving towards a more balanced market, with opportunities for both buyers and sellers.
We continue to see a strong and robust level of buyers relocating to the area, mostly coming from LA, the Bay and Colorado.
DEMAND IN SLO COUNTY
We have seen demand pull-back in July with only 164 homes going pending. This is a 28 percent decrease vs July of 2024, which indicates buyers are more picky, are taking longer to decide on a home, or staying on the sidelines hoping interest rates decrease. For well priced homes, we are still seeing multiple offers, but it is not as common now as it was last year.
On the median, homes are still selling for 97% of their original asking price, which tells us buyers are ready to step up and make strong offers on homes that are well-priced and fit their criteria.
As a seller it is more important than ever to be aware of the current market situation and price accordingly when bringing your house to the market. Don’t over price your property in a market with increasing inventory… you may find yourself on the “expired” list, which no seller wants.
The first two weeks is important for most new listings, so making sure you bring your listing to the market strategically as a seller is more critical than ever. A listing priced strategically, presented well, and promoted actively will lead to strong offers. Over price, and you may get lost in the mix and stay stagnate with no showings and no offers." - Joshua Farris, Broker/Real Estate Advisor DRE 0192964
INVENTORY LEVELS INCREASING
Housing inventory for San Luis Obispo County is gradually reaching back to pre pandemic levels. Right now, we have around 870 active listings for the county, which is 21% more than this time last year. The absorption rate (demand) is not keeping up with the current inventory, so we expect days on market to increase, active listings to grow, and more sellers willing to offer concessions to buyers.
Historically, we would see 1,100-1,200 listings in the month of July, so we are still in a lower inventory market comparatively speaking. With that said, as a buyer, you have more options to choose from vs a couple years past and you have a more balanced market to shop in. All of this is a welcome change for buyers and for contingent sellers who have a replacement home to purchase. Each city in the county is a different market, so understanding your local market and price point is important.
“We’re witnessing a housing market in transition,” said Nicholas Godec, head of fixed income tradables & commodities at S&P Dow Jones Indices, in the report. “The era of broad-based, rapid price appreciation appears over, replaced by a more selective environment where local fundamentals matter more than national trends.” - Forbes
NEW LAWS TO BE AWARE OF IN 2025 | AB 2533
Assembly Bill 2533 (AB 2533) provides amnesty for certain unpermitted accessory dwelling units (ADUs) and junior ADUs built before January 1, 2020. Under this law, local agencies cannot deny a permit for these units due to code violations—unless they determine that correcting the issue is necessary to meet health and safety standards that would otherwise render the building substandard.
Cities and counties are required to educate the public about these amnesty provisions through accessible resources like permit checklists and clear information on their official websites. These public resources must include:
- A checklist detailing health and safety violations that would classify a structure as substandard, and for which a permit may legally be denied.
- Information for homeowners explaining that they may choose to obtain a confidential, third-party code inspection—conducted by a licensed contractor—before applying for a permit. This helps assess the current condition of the ADU and identify any needed improvements.
In addition, homeowners applying for permits for these older, previously unpermitted ADUs or junior ADUs cannot be charged impact fees, connection fees, or capacity charges, unless utility upgrades are needed to address qualifying health and safety issues. LINK TO BILL
FINAL THOUGHTS
Overall, we continue to see a more balanced housing market here on the Central Coast. Closed volume is steady, supply is increasing, and both sellers and buyers can win in today's market. With that said, I am seeing sellers who are priced too high get lost in the mix and not having showings or offers. This can happen in a market where inventory in increasing and values are staying flat or pulling back slightly. Price well and you will see offers presented.
Rates will continue to play a very important role in demand and buyer power, so staying up-to-date on the FED will be critical.
If you would like to discuss your buying, selling, or investing goals, reach out. We are here to help!
References: Forbes.com
