What's Up with Real Estate

Ana Connell,January 27, 2025

Mortgage Rates Move Higher, Insurance Rates Projected to Rise

The devastation from the Southern California fires and the loss of life and livelihood are truly heartbreaking. If you know anyone impacted, here are some resources:
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Steps to take after a wildfire
Malan Resources
In addition to the economic and rebuilding impacts, insurance rates are projected to go higher, adding more headwinds to the current housing market.
Nationally the 50 largest cities showed home prices up 5.8% through November, with 3% fewer properties going into escrow. Mortgage rates approached 7.25%. If interest rates stay above 7% for long it's anticipated that inventory levels will continue to grow. It's a mixed bag for both buyers and sellers.
For the year, mortgage rates are expected to be in the range of 6.5%-7.1%....prices rose 4% in 2024, the Q3 median sales price of $420,400 is a 32% jump from Q3 2020!

Here is a quick economic data recap:
Jobs growth was stronger than expected, unemployment fell to 4.1% as 256,000 jobs were added in December. Core CPI came in at 3.2%, core inflation is still running at 2.9%.

Home prices continue to be a local story. Some areas are showing signs of a possible shift towards a buyer's market, see below for area stats.