If you’re wondering where the local housing market stands as the new year begins, the latest numbers offer some clarity. New year-end real estate statistics show the market across San Luis Obispo County remained largely steady in 2025, prompting many would-be buyers to ask the same question: Is now the time to buy?
According to new data published by SLO Life Magazine, countywide home sales were essentially flat last year, with just over 1,800 homes sold. The average sale price across the county was about $1.4 million.
In the City of San Luis Obispo, prices continued to climb despite fewer homes changing hands. Dollar volume rose more than 10 percent in 2025, even as the number of units sold dropped by about four percent.
Tim Townley, president of the San Luis Obispo Coastal Association of REALTORS® and the creator of the report, says the biggest hurdle for many potential buyers isn’t the market; it’s misinformation.
Townley says homeownership may be more attainable than many buyers realize.
“It’s not as out of reach as some people think," he said. "There’s so much noise out there right now that says you need 20 percent down, when the reality is FHA loans are like 3.5 percent."
Townley adds that some loan programs, including USDA loans, offer zero percent down options for eligible buyers.
"There’s so much talk of no, no, you can’t do it out here," he said. "What you need to do is create a plan and find a realtor and someone financially who can help you."
Donna Lewis, branch manager at Rate Mortgage in San Luis Obispo, agrees that planning early can make a major difference, even for buyers who don’t feel ready just yet.
Lewis says many buyers try to time the market, but waiting often works against them.
"In my opinion, the best time to buy is yesterday," she said, adding that delays can work against buyers over time.
Looking ahead, the California Association of REALTORS®chief economist is forecasting modest growth statewide in 2026, including about a two percent increase in sales and roughly 3.5 percent price growth. Local experts expect the Central Coast to track closely with that outlook.
Townley expects the market to remain relatively stable in 2026, with interest rates staying in the six to seven percent range.
"We all got spoiled by three percent loans," he said. "Those just aren’t going to happen anymore."
Lewis says even buyers who are a year or more away from purchasing can benefit from planning ahead.
"It still makes sense to do that planning well in advance," she said, especially when income or tax returns need to meet certain requirements.
While inventory remains limited across San Luis Obispo County, Townley says homeownership continues to be one of the strongest paths to building long-term, generational wealth, especially for buyers who plan ahead and get the right guidance.
