SLO County: $513,282,570 in Closed Volume for October (+28.2% Year Over Year)
“The Central Coast continues to see strong sales volume in the Month of October. 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
Key Drivers of Increased Transaction Volume:
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Buyer Demand in Select Markets: While overall buyer sentiment might be more cautious due to higher interest rates, the desire for homes in sought-after locations remains strong. The Central Coast’s unique combination of coastal living, proximity to nature, and desirable communities continues to drive interest. Areas with limited inventory are seeing strong competition, even as days on market increase slightly. This can drive quicker sales in certain neighborhoods, which in turn boosts the total transaction volume.
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Resilient Luxury Market: High-net-worth individuals continue to view real estate as a stable, long-term investment, particularly in sought-after regions like the Central Coast. With fewer luxury properties available, high-end homes are still seeing multiple offers and strong closing prices. This segment of the market has helped propel the overall transaction volume upward.
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Increased Investment Activity: Investors, particularly those seeking vacation rental or second-home properties, are also contributing to the volume spike. The Central Coast is an attractive area for these buyers due to its tourism and outdoor lifestyle. Many investors are seizing opportunities in less competitive pockets, where the market may be cooling slightly, in order to secure long-term rental properties or vacation homes.
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A Shift Toward More Expensive Properties: Interestingly, we’re also seeing a shift in the price points where homes are selling. While many buyers are cautious in more entry-level price ranges, there’s still strong activity in the upper-tier market, where buyers are more insulated from rising rates. This has translated into larger sales volumes in the higher-price categories, pushing the overall transaction volume up.
Homes in the Central Coast are taking a bit longer to sell compared to last year. The median days on market has increased from 10 days to 14, reflecting a slower pace in some segments of the market. This could be due to higher interest rates and buyer caution, especially in certain price ranges where demand is cooling.“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