Lake Hills Real Estate
January 2025 Edition
Photo courtesy of Lake Hills resident Sara Hughes
What Should Our Housing Market Expect In 2025?
Here in Lake Hills, two key forces have shaped today’s housing market: low inventory and home affordability. Last year we had limited home availability, but as mortgage rates climbed above 7%, homes lingered on the market. Pricing became more competitive, and while home values rose early in the year, they softened in the second half
Despite recent Federal Reserve rate cuts, long-term mortgage rates remain in the higher 6s, driven by strong economic data like a resilient labor market and robust consumer spending. However, rising credit delinquencies and lower housing starts signal potential challenges ahead. The Fed has hinted at fewer rate cuts in 2025 than initially expected, meaning mortgage rates will likely depend on how the economy performs
HERE’S WHAT I THINK:
I think I DON’T have a crystal ball, but MAN would I love one!!
Interest Rates: I believe mortgage rates will soften and linger in the high 5% and mid 6% range, with economic readings illustrating a slowing economy and lower than Wall Street and economists’ expectations. I HOPE the Federal Reserve will cut more than expected, but that is a big wait-and-see.
Active Inventory: I don’t envision a drastic change throughout this year from last year, but we should see some steady growth as we approach Spring and I also believe the administration change could motivate people to make a move that they have been contemplating. I’ve already spoken with a few of our neighbors that are seriously considering listing in Spring Buyer Demand: There was a lot of hesitation due to the approaching election, but now that it is over, buyer demand should pick up and if interest rates would become a bit friendlier, that demand should become considerable. I do not believe that we’re going to be re-entering the era of “bidding wars” but we are overdue for some healthy demand.
Closed Sales: We had 47 closed sales in 2024 and I fully expect that number to increase in 2025 by at least 10%
Home Values: Ahhh... everyone’s favorite topic! If I had to pick a number for possible home appreciation, 5% would be that number. I’m hearing some predict 10% and I just don’t see it barring some extreme measures to reduce mortgage rates into the 5s and keep them there.
LAKE HILLS HOMEOWNERS -- THIS WEBSITE IS FOR YOU!!
Curious about homes for sale or recent sales here on the hill? Need a trusted local referral? Can’t remember Avalon’s phone number? Find it all at Lake Hills Living -- your new go-to website designed just for Lake Hills homeowners!
Scan the QR code on your mobile device or visit the website to check it out today!
Lake Hills Sales ~ 4th Quarter
The Median List Price is currently $751,705 -- up $7,205 from last quarter’s number of $744,500 -- and the Price Per Square Foot is currently $372 -- down $1 from last quarter’s number of $373. The election is over and hopes are cautiously optimistic for an improved housing market from what we saw in 2024.
THANK YOU LAKE HILLS!!!
According to data from the California Regional Multiple Listing Service (MLS), I’m honored to once again be the top producing Realtor in Lake Hills this past year. This achievement wouldn’t have been possible without the trust and loyalty of the incredible homeowners I’ve had the privilege to work with whether they were upgrading, downsizing, or relocating out of state.
Every client’s journey is unique, and I take immense pride in ensuring smooth transactions and achieving the best possible outcomes. Helping my neighbors in Lake Hills reach their goals is what drives me every day.
If you’ve been thinking about your next move, I’d love to be a resource for you
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EXPERIENCE MATTERS And when it comes to real estate in Lake Hills I’d argue that experience here on the hill matters even more. In 2024, homes up here sold for a little as $625K and as much as $1.575M -- that is a HUGE difference and if you were selling your home, wouldn’t you want someone representing you that knows why?
For the past 21 years I’ve been doing what I do because I truly enjoy helping people with what is one of the biggest financial and emotional decisions of their lives -- their home.
TopProducerinLakeHills/LHRsince2012 Represented3ofthe5highestsalestodate Unequalledmarketknowledge Unparalleledmarketingstrategy
Pre-listhomeimprovementswith nothingoutofpocket(Payatclose) CurrentValueAnalysisofyourhome
Athoroughreviewandfullunderstanding ofYOURneedsandwants
