Housing Report | Central Coast California July 2025

Before we begin, we want to express our gratitude to our clients, referral partners, escrow professionals, and extended team. 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!

Buyer or Seller Market?

A common question I get asked as a real estate broker here on the Central Coast is "are we in a buyer's or seller's market?"

The Central Coast has been trending towards a buyer's market in the last few months, but that doesn't mean we are in a buyer's market...

The absorption rate for San Luis Obispo County is about 30%, which means we are in a more balanced market, not a buyer's market with an over supply of unsold homes. The absorption rate can help us guide sellers, by indicating how long it might take to sell their property, and for our buyers, helping them gauge the competitive buying landscape and adjusting their offers accordingly. Being in a more balanced market has allowed our buyers to have more power and to have a greater chance of negotiating seller credits or price reductions, so compared to previous years it feels more like a favorable buyer's market.

Because real estate demand is subject to location, neighborhood, individual home finishings, pricing, etc, the buyer's offer price should be based on recent comparable sales vs the overall county market.

We expect to move towards a more balanced market in the coming months, with well-priced homes selling quickly and for close to list price, while over-priced properties sitting on the market, going unsold unless they update the home or make a price improvement. This may change, however, if we see a interest rate decrease... which would drive up demand and values.

Housing Inventory Growth

The theme for the real estate market recently has been a housing supply, the Central Coast is no exception.

The Central Coast has seen a gradual increase of housing inventory this year, leading to a 25% increase in June 2025 compared to June of 2024. This has been a welcome change for home buyers here in San Luis Obispo County, moving us towards more normal levels of homes available for purchase. We currently have around 830-840 active homes for sale, compared to 665 in 2024. Historically (pre 2019), we saw around 1,100-1,200 homes for sale in June-July time period.

"Our buyers are seeing more opportunities for negotiation, especially for homes that have sat on the market significantly past the average days on market. If you felt out-priced a few months ago, now may be a great time to plan a new home purchase... the opportunities are out there." - Joshua Farris, Broker. Keller Williams Central Coast. DRE 01921964

To give you a real world example, we are currently helping relocation buyers move back to the area. After determining their criteria and budget, we were able to schedule 6 showings in San Luis Obispo and 1 showing in Pismo Beach... all in one day. Based on the homes that we toured, they were able to determine one that fit their needs and we negotiated an under asking offer and opened escrow. Last year, we would have most likely been able to schedule 2-3 showings, making for a completely different home shopping experience!

Because of more supply, we have seen the corresponding metrics increase as well, notably Inventory Month's Supply and Days on Market.

The median days on market for June was 17, jumping 54% vs last year. This puts us back within historically normal days market levels for the Central Coast. This means buyers have more time to look at homes and structure their offers.

For sellers, it means that pricing according to today's market is essential. Buyer's have more options to choose from and can be more picky vs last year.

"Our sellers who are priced well and marketed strategically are selling quickly and close to asking price. We continue to leverage our promotion, marketing, and market knowledge to deliver the best opportunities and results for our clients here on the Central Coast." - Joshua Farris, Broker. Keller Williams Central Coast. DRE 01921964

Sales Price Trends

We have seen a pullback in the the Median Sales Price since March. This is is to be expected with an increase of supply, higher interest rates, and some economic uncertainty. We expect the median sales price to continue to correct until we reach a more balanced market.

For sellers, it is a reminder that it is important to use accurate sold comparable homes to price your property. The value of a property is a snapshot in time, which may change quickly.

For home buyers, if you were priced out of the market in March of 2025, now may be a good time to jump back in. More options and lower prices may make your shopping experience much better vs 4 months ago.

With a pull-back in the median sale price and an increase in housing supply, we have seen a marked increase in closed sales... up nearly 20% vs June of 2024.

North County continues to be a popular region, with Atascadero, Templeton and Paso Robles accounting for over a 1/3 of closed sales volume for June. With San Luis Obispo and the coastal cities remaining expensive, many buyers are looking to Atascadero and Paso Robles for their housing needs.

In Conclusion.

Overall, we continue to see a more healthy housing market here on the Central Coast. Demand is strong, supply is increasing, and both sellers and buyers can win in today's market.

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!