Central Coast Housing Market Update – December 2024
As we head into the final stretch of 2024, the Central Coast housing market has seen some notable shifts. The combination of rising inventory and relatively stable pricing continues to shape the real estate landscape, offering both opportunities and challenges for buyers and sellers alike.
“The Central Coast continues to see strong sales volume.. This is due to increased inventory, higher home values, and high-end luxury property sales. While some other metro areas are seeing lower sales volume, SLO County saw a bump in closed volume vs the same time last year… highlighting the point that home buyers continue to see value in the Central Coast housing market”
-Joshua Farris, Broker. KW Central Coast. lic#01921964
In November, the Central Coast experienced an uptick in housing inventory, with more active listings accumulating. While this increase in inventory is promising for buyers, it still falls short of historic levels. A few years ago, we would typically see between 1,100 and 1,200 active listings for November/December. The current available inventory is still below these numbers, highlighting the ongoing challenge of limited supply.
Despite this, the median days on market for homes has seen a significant increase of 38% compared to November of 2023. Homes now take a median of 18 days to sell, up from last year’s 13 days. While this indicates a longer wait compared to last year, it’s still well below the historical norm of around 25 days on market. This shows that homes are still selling relatively quickly by long-term standards, especially in a market with higher interest rates.
Median Sales Prices – Year Over Year
Prices on the Central Coast remain strong, with slight year-over-year fluctuations. The median sale price for homes in San Luis Obispo County currently stands at $860,000, reflecting a stable market where values have held steady even amid the challenges of higher interest rates.
Here is a look at the median sale prices for homes in key cities within SLO County as of November:
- Templeton: $873,500
- Atascadero: $772,000
- Paso Robles: $692,500
- San Luis Obispo: $1,150,000
- Arroyo Grande: $1,009,250
- Grover Beach: $774,000
- Oceano: $909,000
- Pismo Beach: $1,625,000
“For housing market conditions to improve, housing supply needs to increase. As mortgage rates decrease, more sellers should come onto the market and list their homes, increasing the number of for-sale homes available.In terms of new home construction, Fannie Mae expects the number of housing starts to end the year down 5.8% but increase 1.4% next year, driven largely by the construction of multifamily homes. The MBA says starts will rise 4.4% in 2025 and 1% in 2026.” – Business Insider
Days on Market and Price Per Square Foot
As mentioned, the median days on market has risen to 18 days—a 38% increase compared to last year. However, this is still relatively quick by historical standards, which indicates that demand remains solid, especially for well-priced homes.
Price per square foot is another critical metric, and it’s important to note that even with the increased days on market, prices have remained resilient. With the continued interest in homes in desirable areas like SLO, Pismo Beach, and Arroyo Grande, the price per square foot remains strong.
Predictions for 2025: Buyers and Sellers
Looking ahead to 2025, the housing market is expected to see a few key trends emerge for both buyers and sellers.- For Buyers: Inventory levels may improve, but they are expected to remain lower than historical averages, keeping competition for homes elevated. Higher interest rates will continue to impact buyer purchasing power, but buyers can still expect to find opportunities in the market, especially with properties that have a high days on market. We expect home prices to remain relatively stable, though some markets may see slight decreases due to higher borrowing costs. Buyers should prepare for a market where they may need to act quickly to secure the right property.
- For Sellers: If you’re thinking about selling in 2025, the market will likely continue to favor sellers, especially those with well-priced and well-maintained properties. Homes that are move-in ready will likely receive strong interest, and it’s expected that homes will sell quickly, with a median list-to-sale price ratio of around 98% of asking price. However, sellers will still need to price their properties thoughtfully to avoid sitting on the market too long in an environment with higher interest rates.
Hot Trends for 2025 Homebuyers
The shift in what buyers are looking for in a home has already begun, and 2025 will likely see these trends continue and evolve. Key preferences for homebuyers include:- Energy Efficiency and Sustainability: With rising utility costs, buyers are increasingly seeking homes with energy-efficient features like solar panels, energy-saving appliances, and improved insulation. Green certifications and sustainable construction methods are becoming significant selling points.
- Home Offices and Remote Workspaces: The continued demand for flexible workspaces within the home is not slowing down. Buyers are prioritizing homes with designated office spaces, soundproof rooms, or areas that can easily be converted into home offices.
- Outdoor Living Spaces: Central Coast buyers are keen on homes that offer private outdoor retreats, such as landscaped gardens, outdoor kitchens, and patios, ideal for the region’s mild climate and lifestyle.
- Modern, Open Floor Plans: Buyers continue to be drawn to homes with modern designs and open floor plans that allow for flexible living spaces. This trend is particularly strong in high-demand areas like Pismo Beach and San Luis Obispo. Smart Home Features: As technology continues to advance, buyers are increasingly interested in homes with smart home capabilities, such as automated lighting, security systems, and energy-efficient climate controls.
- More Character and Design Elements: In addition to the functional features buyers are seeking, interior design trends are evolving to reflect a mix of timeless elegance and modern touches. In 2025, homebuyers are likely to be drawn to bold, expressive design elements, as well as an emphasis on texture and craftsmanship. Expect all grey and beige to be out and greens, browns, yellows and blues to be in. Earthy, grounded bases for paint colors are to be expected.
Making a Move on the Central Coast?
We are still seeing strong demand for homes here on the Central Coast and we don’t think that will change anytime soon!We have amazing weather, natural beauty, amazing beaches, an award-winning wine region, and a welcoming, friendly community of residents.
If you are considering a move in 2024 into a house or property that better fits your lifestyle and stage in life, reach out to our award-winning real estate team, we are here to partner with you and help guide you with all things real estate here on the Central Coast. Whether you are looking to buy your first home, buy your upgrade home, sell a ranch, buy an apartment building, or buy a farm, we have you covered.
We have a consultative, value-first approach tailored to your needs, goals, and timeframes.
