After three tumultuous years, the San Luis Obispo County housing market appears to have leveled off at a spot that is out of reach for most buyers. Home prices and interest rates have maintained their significantly elevated position from the end of 2023 through the first half of 2024. This stability, while seemingly positive, has kept many would-be buyers out of the market, making homeownership a difficult prospect for many.
However, there’s a glimmer of hope on the horizon. San Luis Obispo Realtor Lindsey Harn suggests that the Central Coast’s tight inventory may soon be expanding. Many pandemic-era buyers, who were able to capitalize on low interest rates and make high up-front payments, are starting to list homes they no longer have a use for. This shift could bring much-needed relief to the housing market.
A Changing Landscape
The pandemic drastically altered the real estate landscape. With historically low interest rates and an increased desire for more spacious living conditions, many buyers rushed to secure homes in San Luis Obispo County. This surge in demand led to soaring home prices, making it increasingly difficult for new buyers to enter the market.
Now, as the dust settles, these pandemic-era homeowners are beginning to reassess their needs. Some may be looking to relocate, downsize, or capitalize on the increased equity in their homes. As these properties come onto the market, the increased inventory could provide new opportunities for buyers who have been waiting on the sidelines.
Harn shared a telling example: “I just got a call from someone last week who was like, ‘We don’t have to sell, but we’re getting down here once every three months,’ and it just doesn’t justify having the property if they’ve got to be back in the office three to four days a week from San Jose.” This sentiment is becoming more common as the return to in-office work makes owning a second home less practical for many.
What This Means for Buyers
For potential buyers, the prospect of an expanding inventory is a beacon of hope. With more homes available, the intense competition and bidding wars that have characterized the market in recent years may begin to subside. This could lead to more reasonable home prices and a greater chance for buyers to find properties that meet their needs and budgets.
However, it’s important to remain cautious. While an increase in inventory could help stabilize the market, it’s unlikely to result in a dramatic drop in home prices. Buyers should continue to work closely with experienced real estate professionals to navigate the evolving market landscape.
Conclusion
San Luis Obispo County will continue to be an attractive location for potential homebuyers with sufficient means to move to a beautiful location. However, as Harn noted, the pandemic-era momentum has officially worn off. “Some of the people that did come are exiting because they’ve got to be in the office three or four days a week,” Harn said. “In COVID, living in Los Osos was great, but if you have to be in the Bay Area four days a week for work, you’re just not using it.”
The San Luis Obispo County housing market may have leveled off at a challenging spot for many, but changes are on the horizon. As pandemic-era buyers list their homes, the increased inventory could provide new opportunities for those looking to purchase property on the Central Coast. By staying informed and working with knowledgeable real estate agents, buyers can position themselves to take advantage of these emerging trends.
If you’re considering buying or selling a home, contact us at the Lindsey Harn Group to discuss your options and make informed decisions in this dynamic market.