February 2025 | Central Coast California Housing Report

Central Coast Housing Market Update – Feb 2025

Overall, we are seeing a healthy market for the Central Coast when it comes to housing. Values are holding strong, with the Median Sales price at $862,500 vs $781,750 for the same time period last year. This marks a +10% increase Year Over Year when we compare the January 2025 to the January 2024 numbers. We did see a slight pull back in buyer demand with closed sales down 14% vs the same time last year with only 144 closed transactions. On the Median, the homes for sale are selling for around 96-97% of the original asking price, which is down 2.5% compared to Jan of 2024.

“The Central Coast had a strong transaction volume with $304,026,578 (+3% Year Over Year) sold in the month of January. This was higher than 2024 even though we had a lower closed transaction count of 144 (2025) vs 168 (2024). This is due to a strong median sales price and some high-end, luxury listings being sold. We expect the housing market in SLO County and Northern SB Counties to stay strong heading into 2025.”

– JOSHUA FARRIS, Broker – KW Central Coast | lic#01921964

We have had 216 new listings reach the market, and we anticipate inventory to pick up which will give buyers more choices and allow for a robust buying a selling season. This increase of inventory may lead to a more balanced market with more opportunities for buyers.

Median Sales Prices by City | Central Coast

“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

Is Now a Good Time to Buy in Slo County?

 

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

As we move into 2025, homebuyers’ preferences continue to evolve, influenced by lifestyle changes, technological advancements, and broader economic trends. Here are the top five things buyers are looking for in a home this year:

1. Energy Efficiency and Sustainability

Buyers are increasingly prioritizing homes with energy-efficient features. Solar panels, energy-efficient appliances, smart thermostats, and well-insulated windows are high on the list. Homes with certifications like LEED (Leadership in Energy and Environmental Design) or those built with sustainable materials are especially attractive. This trend reflects a growing concern for the environment and the desire to save on long-term utility costs.

2. Dedicated Home Office Spaces

Remote work is here to stay, and buyers are seeking homes with designated office spaces. Whether it’s a separate room, a nook, or a flexible layout that can accommodate an office setup, the ability to work comfortably from home is crucial. High-speed internet access, noise-reducing features, and privacy are key factors in choosing the right workspace.

3. Outdoor Living Spaces

Outdoor spaces are more important than ever, with buyers desiring larger yards, patios, decks, and outdoor kitchens. These spaces provide room for relaxation, gardening, entertaining, and even working or dining outdoors. In a post-pandemic world, the ability to enjoy the outdoors and create a personal oasis at home is a top priority for many buyers.

4. Warmer Colors

In 2025, one of the notable trends in home design is a shift towards warmer color tones. After years of cooler, minimalist palettes, buyers are increasingly gravitating towards warmer hues that create a cozy, inviting atmosphere. Earthy tones like soft beiges, terracotta, warm greys, olive greens, and deep browns are making their way into interiors, offering a sense of comfort and tranquility. These colors are especially popular in living rooms, kitchens, and bedrooms, where homeowners want to foster a relaxed, homely vibe.

5. Move-In-Ready Condition

Given the current housing market conditions, many buyers are looking for homes that are in excellent condition and require little to no immediate work. Freshly renovated kitchens, updated bathrooms, and well-maintained systems (HVAC, plumbing, etc.) are highly appealing. Move-in-ready homes allow buyers to avoid the hassle of renovations and start enjoying their new property right away.

 

In summary, energy efficiency, home office spaces, outdoor living, smart technology, and move-in-readiness are the top features buyers are looking for in 2025. These preferences reflect broader lifestyle changes, technological advancements, and the ongoing demand for homes that cater to both convenience and sustainability.

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.