2023 North San Luis Obispo County Real Estate Review and 2024 Forecast
The Real estate market of 2023 in San Luis Obispo County was either a Boon or a Bust for you, depending on who you are. If you were a buyer or a lender, it might have been a tough year. If you were a seller or a listing agent, it was an amazing year.
Interest and Inventory were the buzz words of everyone involved in the industry. The average number of single family residences for sale in North San Luis Obispo County was often under 150 units and was running at about a 2 month supply most of the year. We sold 900 homes in 2023 compared with 1122 single family units in 2022. The average interest rate was 6.875%, when just a year prior, they could be found around 5.3%. The median price of a home sold in Paso Robles in 2023 was $700,000.
When a listing came on the market it would sell on average in 19 days or less. And buyers, dependent on low interest rates, had a tough time securing the right property because of competition with cash buyers who made up almost 30% of the sales last year. But predictions are that interest rates will drop in 2024 and that inventory will be up as much as 20%.
Despite the more difficult real estate market, everyone seems to Loves Paso Robles and San Luis Obispo County for so many reasons! The Paso Robles area received 2.2 million visitors during the year. This was great news for wineries, commercial properties and the hotel industry.
Commercial and Industrial property sales and leases have remained relatively unchanged in the past year. There is a higher demand for smaller industrial type spaces for single owner businesses and these will lease and sell very quickly when priced right. However, larger industrial buildings, 3 to 4,000 sq feet and higher, are taking longer to move. Hotel construction is proceeding at a fast pace within downtown Paso, along Highway 101, and on the Eastside. There are many projects on the books which locals will see under construction in the months ahead.
There were some large corporate purchases of wineries in our area this past year including Daou at almost 1 Billion dollars and Denner at appx $40 million. These corporate buys represent the confidence these corporations have in our region both now and into the future. Beyond the purchase of a piece of dirt and buildings, these represent a buy into the Paso Robles brand: the area, the climate, the culture and the beauty. Paso Robles grows 9% of the wine grapes produced in California.
A slow but meaningful recovery is predicted over the next year. Economists are optimistic because delinquencies are at a historic low and buyers credit scores are the highest in a decade. There is also a two year backlog of both buyers and sellers waiting for the right market to make their move. Good job and wage growth is expected in 2024 and as we look around, it can be seen that North County is venturing out into other industries which will provide head of household jobs in the coming years.
Beyond the high interest rate/low inventory story of last year, this area continues to be underpriced for the quality of life that is offered here. You can have a quiet, beautiful place to live, with a good economic future and some of the best weather the world has to offer, right here on the Central Coast. You are fortunate if you own a home here, and if you don't... right now is a great time to buy. The prices will never be better than today. Call me!
