Introduction
August 2025 brought some interesting shifts to the Paso Robles real estate market. While new listings dipped compared to last month and last year, pricing saw an unexpected rise—especially when compared to July. Here’s how the 93446 zip code shaped up:
📈 New Listings Slowed Significantly
New Listings: 53 homes came to market in August
📉 Down 25.4% from August 2024
📉 Down 29.3% from 75 in July 2025
➡ What this means: Fewer sellers listed their homes this month, which may reflect hesitation due to interest rates or seasonal trends. Inventory remains solid thanks to carryover from earlier months, but if this trend continues, it could tighten supply heading into fall.
🏡 Active Listings & Sales
Active Listings: 196
📈 Up 30.7% YoY
⬇️ Slightly lower than 199 in July
Closed Sales: 39
📈 Up 2.6% YoY
⬇️ Slightly down from 43 in July
Months of Supply: 5.1
📈 Up 37.8% YoY
⬇️ Marginally down from 5.2 months in July
➡ What this means: Inventory is still elevated compared to last year, but the month-over-month trend suggests a slight cooling in pace. With fewer new listings and steady sales, supply could tighten if this pattern continues.
Days on Market: A Tale of Two Averages
Median Days on Market: 24 days
⬆️ Up 20% YoY
⬇️ Down from 30 days in July
Average Days on Market: 37 days
⬇️ Down 28.8% YoY
⬇️ Significantly down from 60 days in July
➡ What this means: Homes are generally selling faster than last month, despite the year-over-year median increase. This suggests that motivated buyers are acting quickly on well-priced homes, even as others sit longer.
💰Median Home Prices Are Trending Higher
Median Sale Price: $815,000
📈 Up 6.4% YoY
📈 Up from $746,100 in July (↑ 9.2% MoM)
Median Price per Square Foot: $434
📈 Up 9.6% YoY
📈 Up from $425 in July (↑ 2.1% MoM)
➡ What this means: Despite more inventory and longer days on market earlier in the summer, prices are rising, and August brought a surprising jump in both median price and price per square foot. This suggests continued buyer demand for quality homes, especially in desirable locations.
💡 The Interest Rate Factor
- While the Federal Reserve doesn’t directly set mortgage rates, there are important connections between Fed policy, economic conditions, and how mortgage interest rates move.
- At the core of mortgage rate fluctuations is the Mortgage-Backed Securities (MBS) market. Here’s what to know:
When demand for MBS goes up, prices rise and yields (and mortgage rates) go down.
When demand falls, MBS prices drop, and mortgage rates rise to compensate investors for the added risk.
- These MBS yields often track closely with the 10-year Treasury yield, which is influenced by inflation expectations, economic outlook, and—yes—what the Fed might do next.
- Currently, there’s growing speculation that mortgage rates could ease slightly this fall, even without immediate Fed cuts. If rates do decline, we could see a surge in buyer activity, which may push home prices even higher.
What this could mean for you:
Buyers: A small drop in rates can significantly improve affordability or increase your buying power. If you find the right home, now might be the time to act before a wave of competition returns. Waiting could cost you, as prices may trend upwards.
Sellers: A drop in rates could bring more buyers into the market this fall—so preparing now could position your home ahead of the surge.
Bottom Line
The August 2025 market in Paso Robles shows shifting dynamics:
- fewer new listings
- slightly slower sales, but
- faster market times, and
- rising prices.
The market continues to favor well-positioned sellers—especially those who price strategically and present their homes well.
Buyers have more time and more inventory to choose from, but rising prices may encourage action sooner rather than later.
📍 Source: Infosparks, CRMLS
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Dorian Kisch | 805.600.0677
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