Welcome to the Monthly Market Report for February 2025. We want to give you the insights that you need to help confidently make the best decisions when buying and selling a home.
“We are your real estate advisors” – RRG
…………………….
Are You Asking Yourself These Questions About Selling Your House?
Some homeowners hesitate to sell because they’ve got unanswered questions that hold them back. But a lot of times their concerns are based on misconceptions, not facts. And if they’d just talk to an agent about it, they’d see these doubts aren’t necessarily a hurdle at all.
If uncertainty is keeping you from making a move, it’s time to get the real answers. The ones you deserve. And to take the pressure off, you don’t have to ask the questions, because here’s the data that answers them.
1. Is It Even a Good Idea To Move Right Now?
If you own a home already, you may be tempted to wait because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of how much your house has likely grown in value.
Think about it. Do you know anyone in your neighborhood who’s sold their house recently? If so, did you hear what it sold for? With how much home values have gone up in recent years, the number may surprise you. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), the typical homeowner has gained $147,000 in housing wealth in the last five years alone.
That’s significant – and when you sell, that can give you what you need to fund your next move.
2. Will I Be Able To Find a Home I Like?
If this is on your mind, it’s probably because you remember just how hard it was to find a home over the past few years. But in today’s market, it isn’t as challenging.
Data from Realtor.com shows how much inventory has increased – it’s up nearly 25% compared to this time last year (see graph below):
Even though inventory is still below more normal pre-pandemic levels, it’s improved a lot in the past year. And the best part is, experts say it’ll grow another 10 to 15% this year. That means you have more options for your move – and the best chance in years to find a home you love.
3. Are Buyers Still Buying?
And last, if you’re worried no one’s buying with rates and prices where they are right now, here’s some perspective that can help. While there weren’t as many home sales last year as there’d be in a normal market, roughly 4.24 million homes still sold (not including new construction), according to the National Association of Realtors (NAR). And the expectation is that number will rise in 2025. But even if we only match how many homes sold last year, here’s what that looks like.
- 4.24 million homes ÷ 365 days in a year = 11,616 homes sell each day
- 11,616 homes ÷ 24 hours in a day = 484 homes sell per hour
- 484 homes ÷ 60 minutes = 8 homes sell every minute
Think about that. Just in the time it took you to read this, 8 homes sold. Let this reassure you – the market isn’t at a standstill. Every day, thousands of people buy, and they’re looking for homes like yours.
Bottom Line
When you’re ready to walk through what’s on your mind, I have the answers you need. And in the meantime, tell me: what’s holding you back from making your move?
…………………….
Okay, here’s a breakdown of the February 2025 real estate market report…
Despite the fact that interest rates are still relatively high, the February 2025 real estate market presents some compelling opportunities for buyers. While many people are waiting on the sidelines, those who jump in now could benefit from less competition, motivated sellers, and the potential for future refinancing when (and if) interest rates drop. On the other hand, those who choose to rent may find it more affordable to do so in 2025.
Key Trends and Insights
- Buyer Opportunity: The report suggests that higher mortgage rates have indeed softened demand, creating less competition among buyers. This aligns with the wisdom of Warren Buffett: “Be fearful when others are greedy, and greedy when others are fearful.”
- Seasonal Price Dips: Echoing historical trends, home prices tend to be lower in January and February. One chief economist notes that prices can be significantly lower (around 15% on average) compared to peak months like June.
- Days on Market: Data from NAR shows that homes typically stay on the market longer in January and February. This can give buyers more time to make decisions and negotiate.
- Homeowner Equity: The average homeowner has substantial equity, and a significant portion of mortgaged homes have over 50% equity. This indicates a generally healthy housing market.
- Longer Homeownership Tenure: People are staying in their homes longer than in previous decades, which impacts the supply of homes available.
- Shifting Rental Market: The report indicates that 2025 could favor renters, with asking rents expected to remain flat and more rental units coming onto the market.
- Home as an Investment: Despite the rental market outlook, a large percentage of Americans still view real estate as the best long-term investment.
- Buyer Optimism: Even with market discouragement, a growing percentage of Americans are planning to buy a home, signaling underlying confidence in the market.
Expert Opinions
- Ramsey Solutions: Highlights the advantage of less competition and the possibility of refinancing later.
- Lisa Sturtevant (Chief Economist, Bright MLS): Emphasizes the potential for better prices during the winter months.
- Redfin: Points to an improved rental market in 2025.
- NerdWallet: Notes that a record percentage of Americans are planning to buy a home this year
In Conclusion
For prospective buyers, February 2025 offers a window of opportunity. The combination of less competition, potentially lower prices, and motivated sellers could lead to favorable deals. However, it’s crucial to weigh these advantages against individual financial situations and long-term goals. The rental market may present a viable alternative for some, but the enduring perception of homeownership as a solid investment remains strong for many Americans.
…………………….
Download your Housing Market Update for February 2025 below 👇
…………………….
[bragwall_slider]
…………………….
…………………….
[affordability_shortcode]
Find out what your home is worth today 💰
Search for your next home here 🏠
…………………….
“Get the facts without the pressure”
[contact_form]
Here’s a few neighborhoods you might find your next home in…
Simi Valley CA, Moorpark CA, Thousand Oaks CA, Westlake Village CA, Agoura CA, Oak Park CA, Calabasas CA, Encino CA, Sherman Oaks CA, Tarzana CA, Woodland Hills CA, Camarillo CA, Oxnard
