Market Update - February 2025
Market Action Index - February 2025
Is Spring Already Here?
Did the season start early? After a few cold days and some rain, it certainly feels like spring—both outside and in the housing market. Inventory is higher than it’s been in the last five years, yet still below pre-2020 levels. The real shift? Homes are selling 28% faster over the past few weeks. The best 20% of homes—well-priced, well-prepared—are still going into escrow within the first couple of weeks, while everything else lingers much longer.
Here’s what that means for you:
✔ Buyers: There’s opportunity out there.
✔ Sellers: Preparation is key. The days of listing a home “as-is” and expecting multiple offers in five days are gone. Price and presentation matter more than ever.
If you’re thinking about making a move, let’s talk ASAP. It’s already been a busy season, and I want to make you a priority before the market heats up even more.
Market Segments - February 2025
“Across California, median days on market was 67 days as of December 2024.”
Market Profile - February 2025
HOT TOPICS
Would you like a home valuation and neighborhood report every month? Those receiving these have really enjoyed them! If you’d like a free home report every month, all I need is your address and an email for you. It’s a great way to track home values, loan information, and know exactly what’s being bought and sold in your area Send me an email brendan.gail@kw.com to be added!
Housing Affordability at Near Record Low – High mortgage rates and home prices have made it harder to afford a home, with only 15% of households able to purchase a median-priced home in Q4 2024. Affordability is expected to remain a challenge in 2025 as mortgage rates stay elevated.
Slight Housing Sentiment Improvement, But Affordability Worries Persist – Consumer confidence in homebuying and selling conditions improved slightly in January, but most expect home prices, rents, and mortgage rates to rise in 2025. Optimism about lower mortgage rates dropped significantly.
Mortgage Rates Ease After January Peak – Rates had been declining after hitting an 8-month high but remain elevated due to inflation concerns and stronger-than-expected wage growth. The Fed is holding off on rate cuts until further economic progress is seen.
Consumer Confidence Drops Amid Economic Uncertainty – Confidence fell in January, especially among younger and higher-income households, due to concerns about inflation, interest rates, and job prospects. Despite this, optimism about personal finances and the stock market remains.
Job Growth Slows, But Labor Market Stays Strong – The U.S. added 143,000 jobs in January, below expectations, but the unemployment rate dipped to 4%. Strong wage growth may delay Fed rate cuts, but future decisions will depend on economic conditions.
Reach out anytime! Call, text, or message me 😊
Brendan
P.S. I always appreciate referrals! It’s among the greatest compliments I can receive. If you know someone who is has questions about the real estate market, please send them my way. Thank you!