The San Luis Obispo, CA metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price stands at $899,000, reflecting a modest year-over-year increase of 0.9%. Meanwhile, the Median List Price is $950,000, showing a more pronounced rise of 2.4% compared to the previous year. This indicates a slight upward pressure on pricing, although the growth is relatively moderate.

When examining Price Per Square Foot, the Median Sales Price per square foot is $532.69, with a negligible year-over-year increase of 0.1%. In contrast, the Median List Price per square foot is $573.85, which has risen by 3.2% from the previous year. This suggests that while sellers are optimistic about pricing, buyers are more cautious, leading to a slower increase in actual sales prices.

The number of Homes Sold in January 2025 is 138, marking a significant decline of 16.4% year-over-year. Pending Sales also decreased by 8.3%, totaling 221. This decline in sales activity may be attributed to various factors, including economic conditions or buyer hesitation due to rising prices. However, New Listings have increased by 6.5%, reaching 228, indicating that sellers are entering the market despite the slowdown in sales.

Inventory levels have surged by 28.8% year-over-year, with 545 homes available, contributing to a Months of Supply figure of 3.9, which has more than doubled with a 130% increase. This substantial rise in inventory and supply suggests a shift towards a more balanced market, potentially easing the competitive pressure seen in previous years.

The Median Days on Market have increased by 9% to 60 days, reflecting a slower pace in the market. The average sale to list ratio has decreased by 1.2%, now at 98.1%, indicating that homes are selling slightly below their list prices. Additionally, the percentage of Homes Sold above list price has dropped by 16.4% to 21.7%, further emphasizing the cooling market conditions.

Price Drops are evident in 22.6% of listings, a decrease of 4.4% year-over-year, suggesting that sellers are adjusting expectations to align with market realities. The percentage of homes going off market in two weeks has also decreased by 3.9%, now at 32.6%, indicating a slower turnover rate.

Overall, the San Luis Obispo housing market in January 2025 is characterized by rising inventory and supply, moderate price increases, and a slowdown in sales activity. These trends suggest a market in transition, moving towards greater equilibrium between buyers and sellers.