Welcome to the Monthly Market Report for March 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
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What You Need To Know About Homeowner’s Insurance
Homeowner’s insurance is a must-have to protect what’s probably your biggest investment – your home. And while you never want to think about worst-case scenarios, the right coverage is basically your safety net if something goes wrong. Here’s how it helps you.
- Covers Repairs and Rebuilding Costs: If your home is damaged by fire, storms, or other covered events, your policy helps pay for repairs or even a full rebuild.
- Protects Your Belongings: Many policies can also cover personal items like furniture, electronics, and clothing if they’re stolen or damaged.
- Provides Liability Coverage: If someone gets injured on your property, homeowner’s insurance can help cover medical bills or legal expenses.
In the simplest sense, it gives you peace of mind. Knowing you have protection against unexpected events helps you worry less. And with such a big purchase, having that reassurance is a big deal.
And while your first insurance payment will be wrapped into your closing costs, you’ll want this to be a part of your budget beyond closing day too. That’s because it’s a recurring expense you’ll have once you get the keys to your home.
Here’s what you need to know to help you budget for this important part of homeownership today.
Costs and Claims Are Rising
In recent years, insurance costs have been climbing. According to Insurance.com, there are four big reasons behind the jump in premiums:
- More severe weather events and wildfires are leading to higher claims.
- Insurance companies are pulling out of high-risk areas, reducing options for homeowners in some states.
- Past rate increases haven’t kept up with the rise in claims.
- The cost to rebuild or repair homes has gone up due to higher material and labor costs.
Basically, disasters are happening more often, repairs cost more, and insurers have to adjust their rates to keep up. Data from ICE Mortgage Technology helps paint the picture of how the average yearly premium has climbed over the last decade (see graph below):
What You Can Do About It
Homeowner’s insurance is a must to protect your home and your investment. But with costs rising, you’ll want to do your homework to balance the best coverage you can get at the best price possible.
Homeowner’s insurance rates vary widely based on location, provider, and coverage. Shop around and compare quotes before settling on a policy. And don’t forget to ask about discounts. Things like security systems or bundling with auto insurance could help lower your insurance costs.
Bottom Line
When you’re planning to buy a home, it’s important to look beyond just your mortgage payment. You’ll also want to budget for your homeowner’s insurance policy. It gives you a lot of protection against the unexpected. And while it’s true those costs are rising, there are things you can do to try to get the best price possible.
What’s your biggest concern when it comes to budgeting for homeownership? Let’s talk through it and make sure you’re set up for success.
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The March 2025 housing market report reveals a complex landscape with several key trends:
Home Prices
Home prices have been relatively stable since late 2024, with modest growth continuing into early 2025. The national average year-over-year home price appreciation stands at 3.9%, indicating a return to more normal price growth patterns. However, regional variations persist:
- Los Angeles & Ventura County’s continue to average 10.5% year-over-year growth
- New York leads with 7.22% year-over-year growth
- Tampa is the only metro showing a decline at -1.11%
- Most other major metros fall between 2-6% appreciation
Looking ahead, forecasts from 23 different sources average a 2.7% price appreciation for 2025, suggesting continued but slower growth.
Mortgage Rates
Mortgage rates have been on a downward trend in early 2025:
- Rates have declined for six consecutive weeks
- The 30-year fixed rate reached its lowest point in two months
- Current rates are hovering around 6.75%, down from a recent peak of 7.04%
This decline translates to modest monthly savings for homebuyers. For instance, on a $400,000 home, the rate drop results in about $60 monthly savings.
Market Dynamics
Several factors are influencing the current market:
- Inflation: Core PCE inflation has ticked down to 2.6% in February 2025, approaching the Federal Reserve’s 2% target. This trend could support further mortgage rate declines.
- Buyer Interest: A record 15% of people are planning to buy a home in the next 12 months, up from 11% in 2024. This suggests strong demand despite higher rates compared to recent years.
- Alternative Financing: Buyers are exploring options like mortgage buydowns and adjustable-rate mortgages (ARMs) to manage costs1. 27% of first-time buyers are requesting rate buydowns from sellers.
Outlook
While the market has cooled from the frenzied pace of recent years, it remains active. Lower inflation and declining mortgage rates are positive signs for buyers, but we’re unlikely to see a return to the ultra-low rates of the post-pandemic period1. The combination of moderating prices, gradually improving inventory, and alternative financing options presents opportunities for well-prepared buyers in 2025.
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Download your Housing Market Update for March 2025 below 👇
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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
