The San Luis Obispo, CA metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased to $917,500, reflecting a year-over-year (YoY) growth of 2.1%. This upward trend is mirrored in the Median List Price, which stands at $975,000, marking a 2.7% increase YoY. These figures suggest a steady appreciation in home values, albeit at a moderate pace.

In terms of Price Per Square Foot, the median price is $531.84, with a YoY increase of 1.2%. Meanwhile, the Median List Price per square foot has seen a significant rise of 9.9% YoY, reaching $585.20. This disparity indicates that sellers are optimistic about the market's potential, setting higher expectations for property values.

The number of Homes Sold in February was 194, showing a 2.1% increase YoY. However, Pending Sales have decreased by 9.3% YoY, totaling 204. This decline in Pending Sales could signal a potential slowdown in future transactions. New Listings have slightly decreased by 0.4% YoY, with 237 properties entering the market. Inventory has dramatically dropped by 43.8% YoY, now at 248 homes, contributing to a tighter market.

The Months of Supply have plummeted by 100% YoY, now standing at 1.3 months. This sharp decline indicates a highly competitive market, with limited inventory available for prospective buyers. The Median Days on Market have increased by 14% YoY to 57 days, suggesting that while homes are selling, they are taking slightly longer to do so.

The average sale to list ratio remains stable at 98.8%, with no significant change YoY. However, the percentage of Homes Sold above list price has increased by 5.1% YoY, now at 31.4%. This trend highlights the competitive nature of the market, where buyers are willing to pay premiums to secure properties.

Price Drops have surged by 26.5% YoY, affecting 47.2% of listings. This increase in price reductions may indicate that some sellers are adjusting their expectations to align with market realities. Additionally, the percentage of homes going off the market in two weeks has decreased by 5.5% YoY, now at 40.7%, suggesting a slight cooling in the urgency of transactions.

Overall, the San Luis Obispo housing market in February 2025 is characterized by rising prices and a competitive environment, despite some signs of cooling in certain areas. The significant drop in inventory and Months of Supply underscores the challenges buyers face in this market, while sellers continue to benefit from appreciating property values.