SLO County: $513,282,570 in Closed Volume for October (+28.2% Year Over Year)
October 2024 saw a significant jump in total closed transaction volume, reaching $513.28 million, which represents a robust 28% increase compared to October 2023. This is an impressive rise, especially considering the broader economic factors that have been influencing real estate markets across the country, such as rising mortgage rates and potential buyer caution. The increase in closed volume suggests that despite some of the challenges in the broader market, there’s still substantial demand in the Central Coast area.
“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:
-
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.
-
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.
-
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.
-
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.
Demand is Strong, but Inventory Remains a Challenge
The average number of showings before a property goes under contract has slightly increased from 9.0 to 9.5. This indicates that buyers are being more discerning in their search for the right home, possibly due to a combination of economic factors and shifting preferences. If you are selling your property and you have not received an offer after 9-10 showings, it might be time to consider reevaluating your marketing and pricing plan.
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
Property Value Trends on the Central Coast
Home Values continue to hold strong in October, with a median sales price of around $885k.
Paso Robles and Atascadero continue to offer an excellent selection of affordable price points and options. Paso Robles ended the month with a median sold price of $730,000 and Atascadero has a median sold price of $810,000.
Making a Move?
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.
