EAST BAY MARKET REPORT
DECEMBER 2024
ALAMO MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
DANVILLE MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SAN RAMON MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR
SOLD AVERAGES
CONTRA COSTA COUNTY
LOCAL MARKET TRENDS
CONTRA COSTA COUNTY
2025 MARKET FORECAST
Balanced Expectations
Sellers must recognize that while the market is improving, buyers will have more leverage with increasing inventory and options. Pricing competitively and preparing homes for market will be critical to attract buyers.
Inventory Growth
An anticipated increase in listings will create more competition. Sellers should ensure their property stands out by investing in necessary renovations or staging.
Mortgage Rates Stabilizing
With rates settling near 6%, buyers may find financing more accessible, which could translate to increased activity. However, sellers should not expect the historically low rates to return, which influenced past price spikes.
Home Price Growth Moderating
While modest price gains (1-4.6%) are forecasted, the era of double-digit appreciation is over Sellers should adjust their expectations accordingly and focus on offering value to buyers.
Days on Market Increasing
Homes may take longer to sell, reflecting a more balanced market. Sellers should plan for this when listing their homes and be prepared for extended negotiation periods and home preparation will be a large factor.
Local Impacts
Wildcards like natural disasters, affordability issues, and regional economic shifts could affect insurance costs and housing demand. Sellers in high-risk areas may need to address potential buyer concerns proactively. It remains to be seen that the Southern California wildfire disaster may have have widespread implications - statewide and nationally - affecting many other markets.
ACTION STEPS FOR SELLERS
Prepare Homes Strategically
With buyers gaining more negotiation power, making your home move-in ready will give you an edge. Consider affordable upgrades that offer a strong return on investment.
Price Competitively
Work with your realtor to set a realistic price based on the current market. Overpricing can deter buyers, especially as they gain more options.
Market Timing
Listing when inventory is slightly lower (e.g., early in the year) may help reduce competition
Leverage Buyer Motivation
Buyers driven by life changes (e g , growing families or job relocations) will continue to act, even if mortgage rates are higher than historical lows.
2025 CAR FORECAST:
The California Association of Realtors predicts a 10.5% increase in home sales in 2025, 4.3m sales forecasted in 2025 but some forecasting even higher. If you plan to buy a home, next year is looking very positive. Interest rates are expected to ease, dropping to an average of 5.9% for a 30-year fixed mortgage in 2025. This will be the lowest rate environment seen in over two years
2.6% home value growth in 2025, a relatively slow pace similar to 2024 year’s growth.
QUESTIONS TO CONSIDER
1. Is your current home your dream home?
2. Have you considered any renovations?
3. Do you have any concerns about the current state of the market?
4 Are you interested in investment opportunities?
5. Have you considered upgrading or downsizing?
Wherever you currently stand, always remember that we ' re here for you as a local resource and want to help you through this significant life event Contact us today to receive a free home valuation.
Cheers,
Khrista Jarvis Diebner
DRE# 01213582 (925) 903-0111 | www khristajarvisteam com
