Market Snapshot: January 2025

The luxury real estate market in San Luis Obispo County showed notable shifts in January 2025, with some areas experiencing significant price growth while others saw a decline in closed sales. Below is a detailed breakdown of the market performance, comparing both month-over-month (December 2024 to January 2025) and year-over-year (January 2024 to January 2025) data.

Market Overview

Closed Sales: 143 homes sold in January, down 26.3% from December’s 194 sales. Year-over-year, closed sales also fell 14.9% from 168 sales in January 2024.
Average Sale Price: The countywide average sale price was $1,055,338, down 3.8% from December but up 20.0% year-over-year, reflecting continued appreciation in home values.
Active Listings: Inventory remained tight with 470 active listings, a slight 1.3% decrease from December but a 36.2% increase from January 2024, signaling more options for buyers compared to last year.
Pending Sales: 228 homes went under contract, a 71.4% jump from December, and a 7.5% increase year-over-year, indicating a strong start to 2025.

Luxury Market Highlights

Arroyo Grande: The luxury market saw a 68.4% price increase month-over-month, with the average sale price jumping to $1,554,000 in January, up from $922,641 in December. Year-over-year, prices surged 45.4% from $1,068,875 in January 2024.
Pismo Beach: Prices rose 29.3% from December to January, reaching $1,643,200. Year-over-year, the increase was even more significant at 50.1% from $1,095,000 in January 2024.
San Luis Obispo: The average home price climbed 10.7% month-over-month, reaching $1,333,968 in January. Compared to last year, prices increased 44.6% from $922,474 in January 2024.
Morro Bay: Despite a 58.3% decrease in sales from December, home prices rose 11.3% month-over-month to $1,045,900. However, the year-over-year price change remained relatively flat at -0.8%.
Templeton: Prices dropped 21.7% from December’s $1,883,333 to $1,475,000 in January, though they remained 79.9% higher than January 2024's $820,000.

Key Takeaways

Luxury home prices in Arroyo Grande, Pismo Beach, and San Luis Obispo experienced significant appreciation, with values increasing both month-over-month and year-over-year.
Sales volume declined in January, but pending sales surged, indicating a possible uptick in closings for February.
Inventory levels remain historically low, but year-over-year increases suggest more opportunities for buyers entering the market.

What This Means for You

For luxury home sellers, rising prices and tight inventory create an excellent opportunity to maximize your property’s value. If you’re considering selling, now may be an ideal time to list.

For buyers, while competition remains strong, increasing inventory offers more selection compared to last year.

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