Your November 2024 Central Coast Housing Market Report – Mortgage Rates, Trends & Local Insights

{original post 5/13/2025}

Hello! Thanks for tuning in to this month’s newsletter. Our goal is to bring you valuable real estate content and local updates, so we hope you enjoy it. We would also love to hear from you! Let us know what type of content you’d like to see more of in next month’s newsletter!In this e-newsletter, we’ll dive into post-election financial insights from a wealth advisor and provide a San Luis Obispo County market update.

The Schwaegerle Team strives to educate and empower all people on the ins and outs of real estate, so thank you for tuning in and following the team on social media!

Interest Rates Were Cut, But Mortgage Rates Are Still High?

This is the classic question we get asked. The Fed cut rates, so are mortgages doing better? Well… not exactly. The Federal Funds rate, which the Fed controls, is linked directly to lines of credit, credit cards, and revolving debt. However, mortgages more closely track the 10 year treasury yield. You can see that correlation clearly in the chart below. What does that even mean?

Well, even though the short term debt is getting cut, people are expecting inflation to continue, so we can expect rates to stay high for longer. We keep hearing people say that they are waiting for rates to drop, prices to drop, yet neither of those things will have as much effect on pricing as supply and demand. We won’t see prices drop if we don’t see inventory increase. We won’t see inventory increase if we don’t see new construction or a mass amount of people listing and selling their homes again.

The Election is Done - Now What?
We’ve asked a local Wealth Advisor to provide perspective on what economic experts are saying we can expect to see under the new administration.

Policy Implications for Real Estate Buyers, Sellers, Investors15% Cap on Long-Term Gains: The new administration is interested in further reducing income and capital gains tax rates, including a potential 15% (from 20%) top rate on long-term capital gains. This reduction could benefit investors, making it less costly to sell appreciated assets, such as real estate.

Elimination of Certain Social Security Taxes: The new administration has proposed eliminating taxes on Social Security benefits for seniors, which would benefit retirees, including those managing property portfolios, by giving them additional disposable income.

Cut Corporate Taxes to 15%: For real estate businesses organized as corporations, the new administration's goal is to cut corporate taxes to as low as 15% (from 21%), potentially boosting net income for corporations involved in real estate. If the Tax Cuts and Jobs Act (TCJA) provisions are extended, real estate investors could continue to benefit from bonus depreciation, which enables accelerated deductions on property improvements.

It’s likely we will not see any of these changes effective until mid or late 2025. If you would like to have a conversation to forecast how these policy changes, including many others, would impact your portfolio or ability to reach financial independence, please contact me at any time. My direct line is 949-874-0304, and I'm also available via email at chad.kihm@ironbridgewc.com.

 
By Chad Kihm, Local Private Wealth Advisor for Business Owners

The Happy House Hacking Podcast: Turning Property into Gold
https://www.youtube.com/watch?v=VNnsJB7Uz3k

Ever wondered how to turn a small residential lot into a wealth-building opportunity? In this episode, we’re joined by John Rourke, a local real estate investor and infill development expert. John shares his journey from house flipping to developing ADUs and leveraging California’s SB 9 to create value from small properties. Learn about the potential of urban infill, the advantages of ADUs and SB 9, and gain practical insights into navigating city regulations and overcoming development challenges.

Key Takeaways:California's ADU and SB 9 laws have unlocked new opportunities for infill development and increased housing density.Leveraging debt in real estate can be beneficial, especially when building equity through property development and ADU projects.
Building relationships with investors and developers opens doors to valuable opportunities and insights for those interested in real estate investment.City regulations and enforcement of laws like SB 9 can challenge developers, but collective learning and establishing precedents help streamline the process over time.

Dream Makers: Making a Difference in Our CommunityDid you know that The Schwaegerle Team donates 2.5% of every transaction to Dream Makers? Dream Makers is a local nonprofit dedicated to making dreams come true for terminally ill adults in our community.

Coming Soon
3 bed/2 bath on 15 acres in Atascadero - $750,000
4 bed/4 bath Rice Ranch home in Santa Maria - $1,000,000

Current Active Listings 
1981 Green St, Cambria - Multifamily Zoned 1.25 acre lot Senior Affordable Apartment project
290 Daffodil Ave, Nipomo - 5 bed/3 bath spacious home in Nipomo 
3860 S Higuera St #B4, San Luis Obispo - 2 bed/1 bath affordable living in SLO
3960 S. Higuera St #22, San Luis Obispo - 3 bed/ 2 bath in Creekside Mobile Home Community

Current Pending Listings
3681 Les Maisons Dr, Santa Maria - 3 bed/ 2 bath turnkey home in Santa Maria
230 Oak Hill, Lompoc - 3 bed/ 3 bath brand new construction!
17750 Laurel Rd, Morgan Hill - Off market sale

Just Sold
2425 Canal Dr, Stockton - $400,000
10815 San Marcos Rd, Atascadero - $815,000
2412 Main St, Morro Bay -  $912,000
1432 Tanglewood Ct, San Luis Obispo - $1,140,000
420 Campana Place, Arroyo Grande - $1,240,000
110 Seacliff Dr, Shell Beach - $1,750,100

 Let's Be Social
Thanks so much for reading our newsletter this month! We want to hear from you! Please let us know how we can support you on your real estate journey. Whether you just purchased a new home, want to explore home-buying options, are curious about what your property might be worth, or just want to know more about the market, please reach out! 

@theschwaegerleteam
@your.realtor.slo
@kylereis70

You can also follow us on YouTube and Facebook for more updates throughout the month.

The Schwaegerle Team donates 2.5% of all transactions to Dream Makers. Thank you for helping make dreams come true for terminally-ill adults in SLO County!