1st Quarter of 2025 Housing and Mortgage Update
Updates Dianna Vonderheide April 10, 2025
Updates Dianna Vonderheide April 10, 2025
If you’ve been wondering what’s happening with the housing and mortgage markets in San Luis Obispo (SLO) in 2025, you’re not alone! Whether you're dreaming of a downtown bungalow, a vineyard estate, or a cozy beachside condo, knowing what the market is doing can help you make smart moves — and have a little fun while you're at it.
Luckily, you don’t have to figure it out alone. Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker, are your go-to local experts ready to break it all down for you. Let’s dive into what the first quarter of 2025 looked like and what it means for your real estate goals.
San Luis Obispo’s home prices continued their upward trend in Q1, though the growth was a bit more moderate compared to the frenzy of 2021-2022. The average home price in SLO County is now hovering around $865,000, with particularly strong demand in areas like Templeton, Arroyo Grande, and, of course, San Luis Obispo proper.
Dianna Vonderheide notes that buyers are still highly motivated, especially with San Luis Obispo’s unbeatable blend of natural beauty, vibrant downtown life, and close-knit community vibes. However, buyers are also more price-sensitive than they were a few years ago. That means accurate pricing and strategic marketing (hello, Dianna’s specialty!) are crucial for sellers right now.
Good news if you're house hunting — inventory has finally started to loosen up. Q1 saw about a 12% increase in listings compared to Q1 2024. While SLO is still technically a seller’s market (meaning there are more buyers than homes available), there are definitely more options out there this year.
According to Dianna Vonderheide, well-prepared buyers are getting creative and flexible, exploring up-and-coming neighborhoods, and focusing on properties with strong long-term potential. She’s been helping clients find hidden gems before they hit the broader market — one of the major perks of working with a local expert who knows the area inside and out.
Now, let’s talk money. 🏦
After several years of wild swings, mortgage rates finally started stabilizing in early 2025. The average 30-year fixed rate hovered around 6.1% during Q1, dipping slightly from the highs of 2023 and 2024.
Ken Neate, Mortgage Broker, points out that while rates aren’t back to the historic lows we saw in 2020, they’re still very manageable — especially when you factor in SLO’s strong home value appreciation.
Ken has been busy helping buyers navigate creative financing options, like temporary rate buydowns and adjustable-rate mortgages (ARMs), making monthly payments more affordable. His advice? Get pre-approved early so you can lock in a rate and shop with confidence. (And yes, Dianna and Ken make a killer team if you want to move fast.)
First-time buyers are still a big force in the SLO market, even with higher prices. Thanks to Dianna Vonderheide’s expert guidance and Ken Neate’s smart loan strategies, many buyers are getting into their first homes with creative approaches like down payment assistance programs, seller credits, and lower down payment loan options.
Q1 also saw a rise in co-buying arrangements — friends, siblings, and even extended families teaming up to purchase homes together. Dianna has been at the forefront of helping these buyers structure solid agreements and find properties that make smart long-term investments.
Where’s everyone buying right now? Dianna says these neighborhoods are heating up fast:
Edna Valley: Wine country vibes just minutes from downtown.
Los Osos: Affordable coastal living (and killer sunsets).
Templeton: Award-winning schools, small-town charm, and plenty of space to breathe.
Templeton especially is shining bright in 2025. Families and retirees alike are loving the balance of community feel and easy access to wineries, hiking trails, and top-rated schools. Dianna Vonderheide knows this area like the back of her hand, so if Templeton’s on your radar, she’s the one to call.
Thinking about selling? You’re still in a strong position. However, today’s buyers expect move-in ready homes and realistic pricing. Homes that are staged, well-photographed (professional photos only, please!), and priced appropriately are flying off the market — often with multiple offers.
Dianna Vonderheide specializes in prepping homes to shine their brightest. Her marketing game is strong, combining stunning online presentations, targeted social media ads, and good old-fashioned local networking to bring in motivated buyers fast.
Based on Q1 trends, Dianna and Ken predict a steady, healthy market for the rest of 2025. Here’s what they expect:
Mortgage rates could tick down slightly more by late summer, helping affordability.
Inventory should continue to grow, giving buyers more choices.
Home values are likely to increase modestly — around 3% to 5% countywide.
Templeton, SLO, and Los Osos will remain hot spots for buyers seeking a balance of community, scenery, and investment potential.
Their advice? If you’re serious about buying or selling this year, don’t wait. The best opportunities often go to the most prepared buyers and sellers. And when you’ve got Dianna Vonderheide and Ken Neate on your side, you’re already ahead of the game.
Whether you’re buying your first home, upgrading to a dream property, or selling for top dollar, the San Luis Obispo market is full of opportunity in 2025.
Having an experienced, connected team like Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker
If you’ve been wondering what’s happening with the housing and mortgage markets in San Luis Obispo (SLO) in 2025, you’re not alone! Whether you're dreaming of a downtown bungalow, a vineyard estate, or a cozy beachside condo, knowing what the market is doing can help you make smart moves — and have a little fun while you're at it.
Luckily, you don’t have to figure it out alone. Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker, are your go-to local experts ready to break it all down for you. Let’s dive into what the first quarter of 2025 looked like and what it means for your real estate goals.
San Luis Obispo’s home prices continued their upward trend in Q1, though the growth was a bit more moderate compared to the frenzy of 2021-2022. The average home price in SLO County is now hovering around $865,000, with particularly strong demand in areas like Templeton, Arroyo Grande, and, of course, San Luis Obispo proper.
Dianna Vonderheide notes that buyers are still highly motivated, especially with San Luis Obispo’s unbeatable blend of natural beauty, vibrant downtown life, and close-knit community vibes. However, buyers are also more price-sensitive than they were a few years ago. That means accurate pricing and strategic marketing (hello, Dianna’s specialty!) are crucial for sellers right now.
Good news if you're house hunting — inventory has finally started to loosen up. Q1 saw about a 12% increase in listings compared to Q1 2024. While SLO is still technically a seller’s market (meaning there are more buyers than homes available), there are definitely more options out there this year.
According to Dianna Vonderheide, well-prepared buyers are getting creative and flexible, exploring up-and-coming neighborhoods, and focusing on properties with strong long-term potential. She’s been helping clients find hidden gems before they hit the broader market — one of the major perks of working with a local expert who knows the area inside and out.
Now, let’s talk money. 🏦
After several years of wild swings, mortgage rates finally started stabilizing in early 2025. The average 30-year fixed rate hovered around 6.1% during Q1, dipping slightly from the highs of 2023 and 2024.
Ken Neate, Mortgage Broker, points out that while rates aren’t back to the historic lows we saw in 2020, they’re still very manageable — especially when you factor in SLO’s strong home value appreciation.
Ken has been busy helping buyers navigate creative financing options, like temporary rate buydowns and adjustable-rate mortgages (ARMs), making monthly payments more affordable. His advice? Get pre-approved early so you can lock in a rate and shop with confidence. (And yes, Dianna and Ken make a killer team if you want to move fast.)
First-time buyers are still a big force in the SLO market, even with higher prices. Thanks to Dianna Vonderheide’s expert guidance and Ken Neate’s smart loan strategies, many buyers are getting into their first homes with creative approaches like down payment assistance programs, seller credits, and lower down payment loan options.
Q1 also saw a rise in co-buying arrangements — friends, siblings, and even extended families teaming up to purchase homes together. Dianna has been at the forefront of helping these buyers structure solid agreements and find properties that make smart long-term investments.
Where’s everyone buying right now? Dianna says these neighborhoods are heating up fast:
Edna Valley: Wine country vibes just minutes from downtown.
Los Osos: Affordable coastal living (and killer sunsets).
Templeton: Award-winning schools, small-town charm, and plenty of space to breathe.
Templeton especially is shining bright in 2025. Families and retirees alike are loving the balance of community feel and easy access to wineries, hiking trails, and top-rated schools. Dianna Vonderheide knows this area like the back of her hand, so if Templeton’s on your radar, she’s the one to call.
Thinking about selling? You’re still in a strong position. However, today’s buyers expect move-in ready homes and realistic pricing. Homes that are staged, well-photographed (professional photos only, please!), and priced appropriately are flying off the market — often with multiple offers.
Dianna Vonderheide specializes in prepping homes to shine their brightest. Her marketing game is strong, combining stunning online presentations, targeted social media ads, and good old-fashioned local networking to bring in motivated buyers fast.
Based on Q1 trends, Dianna and Ken predict a steady, healthy market for the rest of 2025. Here’s what they expect:
Mortgage rates could tick down slightly more by late summer, helping affordability.
Inventory should continue to grow, giving buyers more choices.
Home values are likely to increase modestly — around 3% to 5% countywide.
Templeton, SLO, and Los Osos will remain hot spots for buyers seeking a balance of community, scenery, and investment potential.
Their advice? If you’re serious about buying or selling this year, don’t wait. The best opportunities often go to the most prepared buyers and sellers. And when you’ve got Dianna Vonderheide and Ken Neate on your side, you’re already ahead of the game.
Whether you’re buying your first home, upgrading to a dream property, or selling for top dollar, the San Luis Obispo market is full of opportunity in 2025.
Having an experienced, connected team like Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker
If you’ve been wondering what’s happening with the housing and mortgage markets in San Luis Obispo (SLO) in 2025, you’re not alone! Whether you're dreaming of a downtown bungalow, a vineyard estate, or a cozy beachside condo, knowing what the market is doing can help you make smart moves — and have a little fun while you're at it.
Luckily, you don’t have to figure it out alone. Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker, are your go-to local experts ready to break it all down for you. Let’s dive into what the first quarter of 2025 looked like and what it means for your real estate goals.
San Luis Obispo’s home prices continued their upward trend in Q1, though the growth was a bit more moderate compared to the frenzy of 2021-2022. The average home price in SLO County is now hovering around $865,000, with particularly strong demand in areas like Templeton, Arroyo Grande, and, of course, San Luis Obispo proper.
Dianna Vonderheide notes that buyers are still highly motivated, especially with San Luis Obispo’s unbeatable blend of natural beauty, vibrant downtown life, and close-knit community vibes. However, buyers are also more price-sensitive than they were a few years ago. That means accurate pricing and strategic marketing (hello, Dianna’s specialty!) are crucial for sellers right now.
Good news if you're house hunting — inventory has finally started to loosen up. Q1 saw about a 12% increase in listings compared to Q1 2024. While SLO is still technically a seller’s market (meaning there are more buyers than homes available), there are definitely more options out there this year.
According to Dianna Vonderheide, well-prepared buyers are getting creative and flexible, exploring up-and-coming neighborhoods, and focusing on properties with strong long-term potential. She’s been helping clients find hidden gems before they hit the broader market — one of the major perks of working with a local expert who knows the area inside and out.
Now, let’s talk money. 🏦
After several years of wild swings, mortgage rates finally started stabilizing in early 2025. The average 30-year fixed rate hovered around 6.1% during Q1, dipping slightly from the highs of 2023 and 2024.
Ken Neate, Mortgage Broker, points out that while rates aren’t back to the historic lows we saw in 2020, they’re still very manageable — especially when you factor in SLO’s strong home value appreciation.
Ken has been busy helping buyers navigate creative financing options, like temporary rate buydowns and adjustable-rate mortgages (ARMs), making monthly payments more affordable. His advice? Get pre-approved early so you can lock in a rate and shop with confidence. (And yes, Dianna and Ken make a killer team if you want to move fast.)
First-time buyers are still a big force in the SLO market, even with higher prices. Thanks to Dianna Vonderheide’s expert guidance and Ken Neate’s smart loan strategies, many buyers are getting into their first homes with creative approaches like down payment assistance programs, seller credits, and lower down payment loan options.
Q1 also saw a rise in co-buying arrangements — friends, siblings, and even extended families teaming up to purchase homes together. Dianna has been at the forefront of helping these buyers structure solid agreements and find properties that make smart long-term investments.
Where’s everyone buying right now? Dianna says these neighborhoods are heating up fast:
Edna Valley: Wine country vibes just minutes from downtown.
Los Osos: Affordable coastal living (and killer sunsets).
Templeton: Award-winning schools, small-town charm, and plenty of space to breathe.
Templeton especially is shining bright in 2025. Families and retirees alike are loving the balance of community feel and easy access to wineries, hiking trails, and top-rated schools. Dianna Vonderheide knows this area like the back of her hand, so if Templeton’s on your radar, she’s the one to call.
Thinking about selling? You’re still in a strong position. However, today’s buyers expect move-in ready homes and realistic pricing. Homes that are staged, well-photographed (professional photos only, please!), and priced appropriately are flying off the market — often with multiple offers.
Dianna Vonderheide specializes in prepping homes to shine their brightest. Her marketing game is strong, combining stunning online presentations, targeted social media ads, and good old-fashioned local networking to bring in motivated buyers fast.
Based on Q1 trends, Dianna and Ken predict a steady, healthy market for the rest of 2025. Here’s what they expect:
Mortgage rates could tick down slightly more by late summer, helping affordability.
Inventory should continue to grow, giving buyers more choices.
Home values are likely to increase modestly — around 3% to 5% countywide.
Templeton, SLO, and Los Osos will remain hot spots for buyers seeking a balance of community, scenery, and investment potential.
Their advice? If you’re serious about buying or selling this year, don’t wait. The best opportunities often go to the most prepared buyers and sellers. And when you’ve got Dianna Vonderheide and Ken Neate on your side, you’re already ahead of the game.
Whether you’re buying your first home, upgrading to a dream property, or selling for top dollar, the San Luis Obispo market is full of opportunity in 2025.
Having an experienced, connected team like Dianna Vonderheide, Broker (Lic# 01475327), and Ken Neate, Mortgage Broker NMLS #373607, in your corner makes all the difference. Dianna’s local expertise, negotiation skills, and market savvy combined with Ken’s financing magic create a powerful partnership that takes the stress out of real estate — and even makes it a little fun!
✨ Ready to make a move in SLO County? Reach out to Dianna and Ken today and let’s make your 2025 real estate goals a reality!
, in your corner makes all the difference. Dianna’s local expertise, negotiation skills, and market savvy combined with Ken’s financing magic create a powerful partnership that takes the stress out of real estate — and even makes it a little fun!
✨ Ready to make a move in SLO County? Reach out to Dianna and Ken today and let’s make your 2025 real estate goals a reality!
, in your corner makes all the difference. Dianna’s local expertise, negotiation skills, and market savvy combined with Ken’s financing magic create a powerful partnership that takes the stress out of real estate — and even makes it a little fun!
✨ Ready to make a move in SLO County? Reach out to Dianna and Ken today and let’s make your 2025 real estate goals a reality!
San Luis Obispo County Information
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