SAN LUIS OBISPO COUNTY

2022 MARKET ROUND-UP

It's been a bit of a roller coaster in the real estate market this past year. If you read national headlines you would think the sky is falling and it's only a matter of time before this house of cards comes crashing down. But real estate cannot be painted with such a broad brush, it is hyper-local. Our neck of the woods cannot be compared to Boise, Idaho or Phoenix, Arizona, or anywhere else, there are too many variables involved.

Compounding the newsworthy issue is the standard of comparing the period's activity and values to the previous year's period activity and values to determine the market's changes.  It only makes sense when comparing the activities of an abnormally high market to a stabilizing market that the swings are extreme and make great headlines.

Inventory and affordability have always been issues here on the Central Coast. Inventory during the pandemic years shrunk to a quarter of the previously normal averages causing prices to rise at an exceptional rate and putting further strain on the affordability issue.  The sudden rise in interest rates compounded the affordability issue which created the intended jarring method of putting on the brakes.

On average, it's taking a week or two longer to sell than the previous average of fewer than 20 days. The number of sales in the second half of the year saw a significant drop, ending the year with 30% fewer sales than in 2021. Inventory started to see a modest increase until the number of new listings also saw a drop. 

Overall, the county saw a 12.95% increase in the annual median home values from 2021 to 2022. The county's median sales price topped out at $869,000 in May 2022 and closed the year in December at $800,000, just above 2021's median price of $790,000.

So where is 2023 headed? No one has that crystal ball. If you're thinking about buying or selling, it's essential to have a good understanding of what’s going on in your local market. Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you.

Our market report showcases everything you need to know about local San Luis Obispo County real estate trends.