San Luis Obispo County

2024 Market Round-Up

The 2024 real estate market continued to be challenging, with many factors affecting the buying and selling process. Home sales remained near historical lows due to high interest rates and ongoing affordability issues. Here's a breakdown of the key trends and what we might expect in 2025.

During the pandemic years, inventory dropped significantly, reaching just a quarter of what was considered normal for the market. While we saw some brief increases in available homes, desirable properties—especially those that were priced well—didn’t stay on the market for long. The average number of days a home sat on the market increased slightly, up 16.7%, from 12 days to 14 days.

Despite a tough year, there were some positive signs. The number of closed sales in 2024 rose 9.7% compared to 2023. Additionally, the median sales price saw a 3.6% increase, and the price per square foot climbed 6.2%. However, not all areas experienced these upward trends. 

Nearly one-third of the communities in San Luis Obispo County saw a drop in median sales price, although these were mostly smaller communities with lower transaction volumes. Notably, Nipomo experienced a 4.7% decline, and Templeton saw a more significant 12.1% drop in median sales price. However, both areas did see increases in the price per square foot, likely due to the homes sold being smaller in size.

Mortgage rates in 2024 fluctuated, never quite reaching the decline many had hoped for. This uncertainty left many buyers and sellers uncertain about their next steps. Experts believe interest rates will likely come down toward the end of 2025, but it’s expected that there will be more ups and downs throughout the year.

While it's impossible to predict the future with certainty, many expect the market to stabilize in 2025, with interest rates gradually coming down by the end of the year. However, buyers and sellers should be prepared for some volatility as the market continues to adjust.

If you're looking for more specific insights on each community's real estate trends in San Luis Obispo County, our detailed market report has everything you need to know to navigate the market in 2025 and beyond.