
First Time Buyer?
The Federal Reserve has Cut Interest Rates for the First Time in Four Years.
Over the last several years, we’ve seen mortgage rates peak at nearly 8%, existing home sales dropped to near 1990’s levels and we hit a 40 year low in affordable homes.
Looking forward, the fed expects that there will be more cuts coming which will help change the market trends over the next several months. Even though we won’t see the difference overnight, it’s welcome news for the future of the real estate market.
What Does this Mean for the Housing Market?

With mortgage rates dropping we will see an increase in buyers looking to purchase which leads to more sellers being motivated to list their home knowing there will be more competition.
By the beginning of 2025, we expect to see an increase in homes for sale, along with lower borrowing costs which will help strengthen the real estate market. Demand will grow as we will have the lowest interest rates we’ve seen in several years, making homeownership more accessible to a wider range of buyers. This combination of increased inventory and improved affordability is likely to create a more balanced market, benefiting both buyers and sellers in early 2025.
C.A.R. Releases it’s 2025 Housing Market Forcast
According to the California Association of Realters:
“A more favorable interest rate environment that will loosen up the “lock-in” effect and improve housing inventory will encourage buyers and sellers to return to the market to boost both home sales and prices next year, according to a housing and economic forecast.”
Housing supply conditions will continue to improve next year, but a moderate increase rather than a surge in active listings should be expected in 2025. In the next 18 months, interest rates will decline, the lock-in effect will loosen up further, and more properties will be released onto the market. Homeowners who have delayed moving and investors who have been waiting for a market bounce-back will put their properties up on the market as they see the rising trend in home prices as an opportunity to sell. While supply in 2025 will remain below the norm by historical standards, active listings will increase slightly above 10% as market conditions and lending environment continue to improve.