SLO County Sees a 20% Increase in Active Listings Year Over Year
Active listings on the Central Coast are up 20% when compared to this time in 2023. This increase in available homes for purchase is a welcome change for homebuyers in SLO County, who have been struggling in the last few years with limited inventory and high competition. This trend is moving us towards a more normalized and healthy market, although we are still off from the historic number of 1,100-1,300 homes for sale in the same time period. With a recent decrease in the interest rates and increase in available homes, many buyers are looking to take advantage of this situation and have prepared for making their homeownership goals a reality in the Fall of 2024.
“Fall is one of the best seasons to buy a home as buyers can typically negotiate a more desirable price before sellers take their home off the market prior to winter. There can also be fewer buyers as autumn progresses, although inventory is lower compared to spring or summer.
October can be the best month in the fall to buy a home as prices tend to be less competitive but inventory remains at a good level. Where severe weather is of concern, buying during this month still gives time to settle in before the brunt of winter arrives.”
Paso Robles has seen one of the largest increases in active and available inventory levels with Paso Robles City currently having 137 Single Family Homes actively for sale, which is a +25.7% increase YoY. Atascadero has been unchanged when compared to last year with 59 active listings, a +1.7% increase YoY. Moving South, SLO city and Arroyo Grande are closer to the median, with a +15.9% and 21.8% increase year over year respectfully.
“With an increase of housing inventory and a reduction in mortgage rates, now may be a great time as a buyer to gear up for home shopping in the Fall of this year. There is less competition among buyers, more houses for sale, lower mortgage rates and fewer multiple offer situations, all leading to sellers more open to seller concessions and price negotiations.” -Joshua Farris, Broker. KW Central Coast. lic#01921964
Demand Remains Strong, but Pending Sales Down
We continue to see demand for homes and properties here in SLO County with a median of homes selling for 98.8% of their original asking price. This is the median, so each city, neighborhood and house is different. The homes that are selling above asking and for top dollar are not over priced, are clean, present well to buyers and have strong marketing.
Although homes are selling for close to their asking price, we see demand starting to wane as San Luis Obispo County pending sales clock in at 195 for August, with a decline of 12.2% compared to August 2023.
Mortgage rates are a huge factor to consider when it comes to buyer demand and with the rates lowering we see buyer demand picking up. We expect mortgage rates to remain between 6-6.25% for the next few quarters, so if you are a buyer don’t expect a drastic decrease in rates any time soon. Our advice is to focus on buying the right house for your budget, negotiating credits and have a clear list of criteria.“Being a Central Coast native myself, I know that this is a special area here. Each city has its own personality and style, something for every lifestyle. If the Central Coast is calling you, give our team a call and see how a local, connected real estate team can make all the difference for you.”
-Joshua Farris, Broker. KW Central Coast. lic#01921964
Property Value Trends on the Central Coast
$635,500 was the median price of a home in September just 4 years ago in SLO County. Now, the median price point is $875,000. This strong increase in values is a indication that buyers are willing to pay for the quality of life they receive on the Central Coast. We expect these value trend lines to level off and to return to the historic 4-6% yearly value increase.With San Luis Obispo being such a hot market, we see the secondary markets outside of SLO proper continuing to see robust growth and demand. The cities of Atascadero and Paso Robles lead the pack when it comes to homes sold and we expect these markets to show strong value increases into the future with more and more demand coming from out of the area buyers and people moving from SLO.
Selling or Buying in Fall?
We are still seeing strong demand for homes here on the Central Coast and I don’t think that will change anytime soon! We have amazing weather, nature trails, the beach, one of the best wine regions in the world, and a wonderful community. If you are looking to relocation to the Central Coast to enjoy the lifestyle it has to offer, reach out and we will help you find the perfect home and property for your lifestyle.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.
