San Luis Obispo County April 2025 Market Update

As we stepped into spring, the San Luis Obispo County real estate market continued to show some interesting shifts. From the rising inventory levels to the uptick in price per square foot, there’s a lot to unpack this month. Here’s what you need to know about the market as we wrap up April.

New Listings & Inventory Trends

In April, the number of new listings in SLO County dipped by 7.7% compared to last month and 4.3% to the same time last year. This indicates a slowdown in the number of sellers entering the market. However, the total inventory of available homes has increased significantly – up nearly 23% from last year and 7% from last month. This is a benefit to buyers, offering more options in a market that has been historically tight in recent years.

A standout trend is seen in the City of San Luis Obispo, where inventory has spiked by 61% since the start of 2025, bringing it back in line with pre-pandemic levels. This increase is particularly noteworthy, as it provides more choices for buyers who may have previously been discouraged by low inventory in the city.

Sales & Market Activity

Closed sales were down by 3% from last year but showed a 6% increase from March, indicating a slight uptick in activity month-over-month. This suggests that while the market may have cooled a bit year-over-year, there’s still movement as we enter the warmer months.

However, pending sales tell a different story as they dropped by 19% from both last month and last year. It's a bit early to signal a potential slowdown in buyer demand. This drop could be due to a variety of factors, including higher mortgage rates and affordability concerns, which we’ll discuss further in a moment.

Days on Market & Supply

One of the more notable statistics this month is the increase in the days on market, which is up by more than 30% from last year. Homes are taking longer to sell, likely a sign of some economic uncertainty. Months of supply also increased by 23%, indicating a slower pace of sales and giving buyers a bit more breathing room compared to the frenzied pace we saw during the pandemic.

Prices & Affordability

Despite the stall in pending sales, home prices continue to trend upward. The price per square foot has increased by 7% from last year, and the average sales price has risen by more than 6% year-over-year. While this may be good news for sellers, it reflects the ongoing affordability challenges buyers are facing, especially given the broader economic conditions.

In terms of the affordability landscape, only 17% of California homebuyers can afford to purchase a median-priced existing single-family home in the state. In SLO County, home prices remain high, with only five communities falling under the state’s $846,830 median price. This points to the continued affordability challenges many potential buyers face in our area.

Fast-Moving Homes & Seller Success

A significant portion of homes are still selling relatively quickly. 40% of homes sold in April were under contract within 10 days of hitting the market. Additionally, 40% of homes sold for their asking price or higher, underscoring the ongoing demand for well-priced properties. Despite a more balanced market overall, homes that are priced well and in desirable locations are still seeing strong competition.

The Broader Economic Outlook

On the economic front, the Federal Reserve held interest rates steady in April, which was a welcome sign for many potential buyers. However, most analysts expect the Consumer Price Index (CPI) to begin trending higher again in the coming months, which could put upward pressure on mortgage rates. This makes it crucial for both buyers and sellers to stay informed about interest rate trends and adjust their strategies accordingly.

Conclusion

The San Luis Obispo County real estate market is seeing some notable changes as we move through the spring. While there weren't any significant jumps in sales activity and buyer demand, there are positive developments, such as increased inventory and rising home prices. Buyers may have more options now than in previous years, but affordability remains a challenge, especially in high-demand areas like San Luis Obispo.

If you're considering buying or selling in the SLO County area, staying informed about these trends is essential. As always, feel free to reach out to discuss the latest market conditions and how they may affect your real estate goals.

Stay tuned for next month's update, and don’t hesitate to reach out if you have any questions or are ready to make your next move!