What To Expect For the 2025 California Real Estate

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

Hey agents! So, elections are behind us, and regardless of your political preferences, you were still planning on going to work the next day and serving your clients, right? Great, that’s the mindset of a top-producing agent. Let’s talk about that and what 2025 might look like for you.

Now, many of us have been in this business through elections, market cycles, etc, and some agents still thrive no matter what, right? Why? Because no matter what story they are hearing, they are focused on their business and serving the needs of their clients. There is always a need to buy, and to sell. In 2025, there is opportunity again. With the recent C.A.R. market forecast, home sales and prices are projected to increase slightly as interest rates decline and more inventory becomes available.

In the video above, we will look at this forecast in terms of 4 areas you can help clients, and can thrive in Your business. My tip: don’t wait. Be organized and plan your strategy now.

Here’s what to expect:

#1: Increased Number of Home Sales in 2025

The number of single-family home sales is forecast to increase by 10.5%. This increase suggests a more active market with more opportunities for buyers and sellers. So, who Were the buyers and sellers in 2024? We have that data, right? These demographics will continue in 2025, but amplified with more activity. Combine that data with your excellent follow-up and I predict you will do well next year.

#2: Rising Home Prices

The median home price in California is expected to climb over $900,000. Current housing shortages and a competitive market will continue to put upward pressure on prices. Keep in mind that these are statewide numbers, but our region will likely follow a similar pattern. Which clients do you have that can benefit from the market staying strong right now? Reach out to them!

#3: Favorable Interest Rates

Interest rates are expected to decline, with the average interest rate falling below 6%. Lower borrowing costs Will encourage more buyers and sellers to enter the market. Do you have clients that were hesitant this year, got cold feet, or said they wanted to wait for things to improve? Reach out to them now before they are faced with more competition!

#4: Improved Housing Inventory

Right now, sellers are reluctant to let go of their 2-3% interest rates even if they need a larger home or want to downsize. They feel locked in to what they have. The improving interest rates are already starting to unlock this inventory. More homeowners are expected to sell, providing more options for buyers. Your message should be: don’t wait. Don’t wait to compete with those buyers. It’s a perfect time to be a seller, and there are plenty of opportunities as a buyer.

So, are you going to do more business in 2025? Now is the time to start preparing. One of our coaches says: How you end is how you start. In the next month, know your goals, prioritize your contacts, and reach out now. End 2024 in full motion and start the new year with deals closing.

Let’s conquer the 2025 market together! I’m here when you’re ready.