Join us as we bring you up-to-speed as share the latest trends and predictions for the real estate market here in SLO County with a goal of helping you and your friends/family make the most informed decision when it comes to home buying, selling, and investing here on the Central Coast of California. Our mission is to deliver a high-quality, elevated service that delivers value and assists you reaching your real estate goals here on the beautiful region we call home.
Before we begin, we would like to express our gratitude to all of our wonderful clients who have entrusted us with their real estate needs and continue to refer us their friends, family and co-workers. Also, a sincere thank you to our trusted vendors, escrow officers, and office team who continue to deliver value for our incredible clients!
– JOSHUA FARRIS, Broker Associate | Real Estate Advisor
KW Central Coast | Lic# 01921964
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
The median sale price for homes in San Luis Obispo County currently stands at $862,500, reflecting a stable and balanced market that continues to appreciate Year-Over- Year.
Here is a look at the median sale prices for homes in key cities within SLO County as of Feb:
- Templeton: $1,525,000
- Atascadero: $702,500
- Paso Robles: $695,000
- San Luis Obispo: $1,011,726
- Arroyo Grande: $1,235,000
- Grover Beach: $795,000
- Oceano: $570,000
- Pismo Beach: $1,465,000
- Nipomo: $860,000
We have seen more sellers willing to offer concessions and price adjustments vs. previous years. This is a smart move from sellers as we have seen buyer’s purchase power face some headwinds with high insurance costs, mortgage rates, and high prices. With an increase of inventory, we expect to see a slight pull back in median sales prices for SLO County in 2025. If you are a seller, it is recommended to list in early Spring if you can vs. late summer as well expect there to be more competition from sellers during that time. If you are a buyer and would like to maximize your opportunity for a deal, look at homes that have been sitting on the market past the median days on market.
“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?
In 2025, many potential homebuyers are hesitant to enter the market due to high interest rates, which have made monthly mortgage payments more expensive. This has led some to delay or reconsider purchasing a home, hoping for a future dip in rates. However, it may actually be a strategic time to buy now. Why? While rates are high and there are fewer buyers, many home sellers on the Central Coast are more open to negotiate a lower price and offer credits.
For example, we helped a buyer close on their first home in a prime Pismo Beach location. The list price was $1,050,000 and had accumulated some days on market. We were able to negotiate on behalf of our buyer and secure $90,000 off the asking price PLUS $15,000 of credit to go towards closing costs. This illustrates the fact that there are deals out there and room to negotiate for some properties.
In a similar example, we are closing escrow next week on a duplex in Grover Beach that had been on the market for a while. We were able to talk the seller down $40,000 off the asking price PLUS $10,000 in closing costs. This saved our client money and set them up for success as an investor.
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.
Learn more about our listing process here: OUR PROCESS
Our Reviews: REVIEWS
- “I highly recommend Joshua Farris for all your Real Estate needs. He’s very detailed oriented. He’s always available to answer any of your questions. The Listing, Sale & Close of Escrow went very smoothly with no hitches! On a scale from 1 -10…Joshua’s a 10!” – George R. (Pismo Beach)
- “Joshua is an exceedingly diligent, knowledgeable, and trustworthy realtor. He patiently listened to our needs, answered our questions and carefully tailored the process to make it as smooth as possible. We are very grateful for Joshua’s guidance and expertise in finding us a home.” – Clark G. (Arroyo Grande)
- “Josh was amazing in helping me buy my first home. His connections in SLO helped us get our offer accepted in a competitive market. He also was patient with all the questions I had and guided me through every step of the process. I highly recommend Josh!” Alex D. (SLO)
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