By Jaime Silveira

Welcome to 2025! We hope your year is off to a great start. As we begin to look to the future, we like to take a minute to assess the previous year. It’s clear 2024 was anything but predictable for the real estate market. From unexpected mortgage rate spikes to a presidential election, the housing landscape evolved in ways that even seasoned experts didn’t anticipate. 

Quite often, when the environment is hazy, statistics tend to tell a more direct story. North San Luis Obispo County saw an overall increase in the number of homes sold last year. Looking at Atascadero, 304 homes were sold in 2024, with a median sales price of $760,500. Compare that to the 259 homes sold in 2023 with a median sales price of $755,000. That is an increase in closed homes of 17 percent with a less than 1 percent increase in the median sales price. Looking at Templeton, there were 76 homes sold in 2023 and a median price of $1.05 million. In 2024, Templeton had 104 home sales and a median sales price of $922,500. That’s an increase of 37 percent in homes sold but a 12 percent decrease in the median sales price. 

Paso Robles experienced a slight decrease in home sales but an increase in the median sales price. Home sales were 502 in 2023 and a median sales price of $660,000. In 2024, Paso Robles had 461 home sales and a median price of $725,000. That’s a decrease of 8 percent in homes sold with a 10 percent increase in the median sales price. 

It should come at no surprise, with the increase in both home sales and median sales price, that  home appreciation is up 2.6 percent for San Luis Obispo County. This data is based on purchase and refinance data from January 2024 to September 2024 (FHFA.gov). This positive appreciation demonstrates that the Central Coast is still seen as an extremelydesirable place to live thus keeping home values rising in the upward trend. 

Once again, mortgage rates dominated the market this year. Rates hovered between 6.5 and  7.5 percent, which caused some homebuyers to pause their housing search and wait for rates to drop. Rates were stubborn, too. Even though inflation dropped and we saw three FED interest rate cuts, uncertainty over the election and strength of the economy kept mortgage rates elevated. Even with that hesitation, the number of active listings continued to rise this past year, but they took a while to translate to sales. It wasn’t until later in the year that market activity really picked up following FED rate cuts which triggered homebuyers to enter the housing market once again. 

Supply and demand will continue to play a role in the sales forecast for 2025. In the first week of January, Atascadero inventory showed a slight decrease when comparing January 2023 to January 2024, from 46 active homes on the market to 40. The number of active listings with reduced prices is up slightly from this time last year. In the first week of January 2024, 49 percent of the homes on the market had a price reduction, whereas in 2025, it was 51 percent. This isn’t a largedifference, but it is a difference, nonetheless. 

As 2024 progressed, we continued to see the number of homes on the market with price reductions increase. For buyersthis is good news. They should be able to purchase a home for a negotiated price as opposed to a listing price with little to no flexibility, as we saw during the pandemic. For sellers, you may have to be a little more patient and a little morewilling to negotiate your terms. That said, homes in Atascadero currently continue to close at or close to the asking price. In 2024,  Atascadero sellers received 96 percent of their asking price when comparing the average sales price to 

the average list price. So, whether you’re a buyer or seller, the housing market on the Central Coast is a solid investment. 

While pulling the numbers for 2024, I thought it would be interesting to see what the highest residential home sales price was and what the lowest home sales price was for each city. Atascadero’s most expensive home sold for $2.045 million, and the lowest sold for $270,000. In Paso Robles, the high was $6.195 million and the lowest was $186,000. Templeton’s highest home sale was  $6.1 million, and its lowest was $438,750. 

Understanding these figures is crucial when deciding to buy or sell a home. As many know, the timing of a real estate transaction is often influenced by personal circumstances — such as a new job, downsizing, family changes, retirement, or other significant life events. These factors often lead to considering a move, if not demanding one. However, whether to take action typically hinges on whether the financials align. What makes sense financially is a key consideration when making any real estate decision. It’s also important to remember that our local market doesn’t follow the typical urban patterns. We’re a unique niche situated between the Bay Area to the north and Los Angeles to the south. Our communities offer more than just geographical beauty and a high quality of life — they also provide the convenience of being centrally located within California.

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