San Luis Obispo County Real Estate Market Update

November–December 2025

As we closed out 2025, the San Luis Obispo County housing market continued its gradual shift toward balance. Inventory tightened into December, pricing remained stable, and days on market lengthened slightly—signaling a market that is slower, but still fundamentally healthy.

This update reflects rolling three-month median and average figures from recent MLS activity, providing a clearer picture than single-month snapshots.

Countywide Snapshot (Rolling 3-Month Averages)

Inventory & Supply

  • Months of Supply

    • November: 3.7 months

    • December: 3.3 months

Pricing

  • Median Sale Price

    • November: $816,700

    • December: $816,000

  • Average Sale Price

    • November: $1,013,000

    • December: $1,008,000

Market Speed

  • Median Days on Market

    • November: 24 days

    • December: 25 days

  • Average Days on Market

    • November: 45 days

    • December: 51 days

Seller Leverage

  • Median % of Original List Price

    • November: 97.8%

    • December: 97.5%

  • Average % of Original List Price

    • November: 95.8%

    • December: 95.5%

Activity

  • New Listings

    • November: 738

    • December: 595

  • Closed Sales

    • November: 654

    • December: 631

What Changed from November to December

Inventory tightened, not because demand surged, but because new listings declined faster than sales as the year wrapped up. The drop from 3.7 to 3.3 months of supply quietly shifted the county back toward a more competitive posture heading into 2026.

Prices held steady. Both median and average sale prices remained essentially flat, indicating stability rather than downward pressure. This suggests that while buyers are more selective, they are not retreating from the market.

Market speed diverged. Median days on market barely moved, while average days on market increased. In practical terms, this means most well-priced homes are still selling in about three to four weeks, but a subset of listings—often higher-priced or condition-sensitive properties—are taking considerably longer.

Negotiation remains measured. Homes are still selling close to list price on a median basis, though average list-to-sale ratios show buyers negotiating modest concessions, particularly outside the most competitive price bands.

Median vs. Average: Why the Gap Matters

In a county with everything from entry-level condos to multi-million-dollar coastal homes, the difference between median and average numbers is critical.

  • The median reflects the typical buyer and seller experience.

  • The average is influenced by higher-end and luxury transactions.

As we saw in both November and December, averages remained well above medians—confirming that upper-tier sales continue to skew headline numbers even as the core market remains stable.

For buyers, the median offers a more realistic benchmark for value. For sellers, understanding where a property sits relative to the median versus the average is key to setting expectations and pricing correctly.

How This Plays Out Locally

While this post focuses on countywide trends, conditions vary significantly by city and price range. Some communities remain supply-constrained with fast sale times, while others—particularly coastal and luxury-oriented markets—are seeing longer marketing periods and more negotiation.

Each community page on this site includes a monthly Market Snapshot showing how local conditions compare to the broader county trend.

How Local Markets Are Diverging Across the County

While countywide numbers show stability, the underlying story is divergence by community, price band, and buyer profile.

Fastest-Moving, Supply-Constrained Markets

  • Grover Beach and Atascadero remain among the tightest markets, with limited inventory and short median days on market. Homes priced near recent comparables continue to attract strong interest.

  • San Luis Obispo and Arroyo Grande also show quick turnover, driven by location, lifestyle demand, and a consistent pool of qualified buyers.

Balanced Inland Markets

  • Paso Robles, Templeton, and Nipomo are trending closer to balance, with inventory levels allowing buyers more choice but not indicating oversupply.

  • In these areas, the gap between median and average prices reflects a mix of standard residential homes and larger rural or custom properties, rather than broad-based price pressure.

Slower Coastal & Luxury-Influenced Markets

  • Pismo Beach, Cayucos, and parts of Morro Bay continue to see longer marketing times and wider negotiation ranges.

  • Elevated inventory and larger differences between median and average pricing point to luxury and second-home inventory shaping overall performance more than primary-residence demand.

Smaller Markets, Bigger Swings

  • Los Osos and Oceano show how smaller transaction counts can create sharper month-to-month movement in metrics like days on market and list-to-sale ratios.

  • In these communities, individual properties and pricing decisions can disproportionately influence short-term data.

Bottom line:
San Luis Obispo County is no longer moving as a single market. Entry-level and centrally located communities remain competitive, while coastal and luxury-oriented areas require greater pricing discipline and patience. Understanding which local market you’re actually in matters more now than the county headline numbers.

What This Means Heading into 2026

  • The market is not accelerating, but it is not weakening either.

  • Inventory remains below long-term norms, even after the seasonal slowdown.

  • Pricing discipline matters more than ever—homes priced correctly continue to move, while optimistic pricing leads to longer market times.

As we move into the new year, the data suggests a market defined by selectivity and strategy, rather than urgency or distress.

Buyer Insights, Market UpdatesIan ChandlerSan Luis Obispo County Real Estate, Market Update, Housing Market Trends, Inventory, Days on Market, Median vs Average Pricing