Before we begin, we want to express our gratitude to our clients, referral partners, escrow professionals, and extended team. This is shaping up to be my team's most productive year yet, with our goal of helping 25 families buy, sell, and invest within reach.
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!
Joshua Farris | Real Estate Advisor
KW Central Coast | DRE 01921964
Active Listing Inventory Reaching More Normal Levels
The Central Coast has always been a fairly low inventory market, with historic levels of active homes for sale during the summer months being around 1,000 to 1,200. For the last few years, we have seen lower than normal levels of houses available for purchase, with summer of 2021 reaching historically low levels of around 560-570 homes for sale.
We are happy to report that we are starting to reach more normalized levels, with 868 active homes for sale. This is a welcome change, giving buyers much needed purchase options. With that said, we saw a pull back in new listings brought to the market, with only 250 new listings in August.
We expect active inventory levels to slowly rise over the next few months, albeit slower than expected due to lower levels of new listings.
This rise in housing supply has led to higher days on market, more consistent with a normalized market, with the median days on market now at 22. This gives buyers more time to shop for a home and opportunities for negotiations on homes with longer days on market.
Soft Pending Sales for August, Closed Sales Strong
We saw a pull back in pending sales for August, with only 150 properties pending for the month. This was down 38% compared to August of 2024, which had 244 pending sales. This is still a far cry from the historic levels of pending sales in August, which are typically 300-350. May was the strongest month for pending sales this year, with 260 escrows opened.
This weaker level of demand is a combination of factors; high mortgage rates, high home prices, and some economic uncertainty. We expect to see an uptick in pending sales when interest rates decrease and affordability improves here on the Central Coast.
Closed sales were strong in August with 242 closed transactions, totaling $520 million in closed volume which is consistent with 2024.
"With low pending sales, now may be a great time as a buyer to enter the market. Many sellers are not seeing as many showings and offers... which can set you up for success as a buyer and secure some leverage. As I mention in my video update, we just closed escrow for our buyer and were able to negotiate $45,000 off the original asking price along with a $5,000 seller credit to pay down buyer closing costs. The opportunities are out there for buyers. - Joshua Farris, Broker.
Median Sales Price Holds Steady
The median price for a home holds steady, with a August median sales price of $910,000.
Pismo Beach continues to hold a top spot for desirability, with Arroyo Grande and SLO being strong runner ups. The most affordable cities are Santa Maria, Grover Beach and Oceano.
- Pismo Beach $1,262,500 | -15.3% YoY
- Arroyo Grande $1,205,000 | +10.8% YoY
- Paso Robles City $815,000 | +6.4% YoY
- San Luis Obispo City $1,096,000 | +3.5% YoY
- Atascadero City $814,000 | -4.2% YoY
- Templeton $1,010,000 | 0.0% YoY
- Grover Beach $550,000 | -26.7% YoY
- Santa Maria $690,000 | +1.5% YoY
- Los Osos $855,750 | -13.3% YoY
- Oceano $652,500 | -18.4% YoY
- Nipomo $930,000 | -23.3% YoY
Most homes for sale are selling for around 97% of original list price, which is a great metric to illuminate buyer demand and how well homes are priced in today's market. This number indicates that buyers have a bit more negotiating power in today's market, and that many sellers are slightly overpricing their listings.
Interest Rates
Interest rates dipped below 6.5% for the national average, the first time since October of 2024.
Will be see interest rates below 6%? There is a good chance, but it is hard to tell and nobody has a crystal ball.
If I were you, I wouldn't wait for interest rates to lower to start shopping for a home. Once the interest rates lower, demand will pick up along with prices. Now is a perfect time to negotiate seller credits, rate buy down, or closing cost concessions. As a buyer, you have some negotiating power.
"September 2025 has finally arrived, and with it, excitement and anticipation surround a new interest rate reduction courtesy of the Federal Reserve. The federal funds rate has remained frozen for all of 2025, following three cuts in the final months of 2024 that left the rate a full point lower than where it started the year. Now, however, with inflation somewhat static and concerns over unemployment, among other items, at the forefront, the central bank is poised to issue a new cut. Currently at a range of 4.25% to 4.50%, the chances of a cut when the bank finishes its next meeting on September 17 currently sit around 90%, according to the CME Group's FedWatch tool." - https://www.cbsnews.com/
If you would like to learn about a special program where you can get your rate below 6%, at no additional cost to you, reach out to my team today and we can fill you in on this exclusive opportunity.
Winning Advice for Buyers and Sellers
For buyers,
Get Pre-Approved for a Mortgage Before Home Shopping
- Talk to a lender early and get a pre-approval letter.
- This helps you understand your budget, shows sellers you’re serious, and gives you an advantage in competitive markets.
Define Your Must-Haves vs. Nice-to-Haves
- Make a clear list of your top priorities (location, size, number of bedrooms, school district, commute, etc.).
- This keeps you focused and prevents “decision fatigue” when touring homes.
Organize Finances & Save for Upfront Costs
- Beyond the down payment, budget for closing costs, inspections, moving expenses, and potential repairs.
- Check your credit score, pay down debt, and avoid big purchases before shopping.
For Sellers,
Discuss Your Motivation and Your Priorities
- Determine your goals and timelines for the sale.
- Declutter and start to repair obvious repair items.
Price Right in Today's Market.
- Keep an eye out for recent sales in your neighborhood to get a pulse on the market.
- Be prepared to price competitively so that you get the attention you deserve.
Hire the Right Local Agent
- Make sure you are going to be working with the agent you hire, not the rookie assistant.
- Check their reviews and experience.
- Call their references to make sure they have good things to say about the experience.
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 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, upgrade your current home, invest, or maybe you want to downsize, we have you covered.
We have a consultative, value-first approach tailored to your needs, goals, and timeframes.
