Lynn North's Market Update

2025 First Quarter Forecast

The housing market is looking sunnier going into the new year, with modest sales growth, slower price increases, and more homes hitting the market—though affordability may still be challenging. It’s important to stay adaptable, keep an eye on mortgage rates, and be ready to guide clients through fresh opportunities like new construction trends!
 
As we approach 2025 under President-elect Donald Trump's leadership, real estate professionals can expect shifts driven by potential policy changes. With a history of tax cuts and deregulation, Trump’s policies and new initiatives may impact mortgage rates, construction, and housing affordability.

Economic Overview: The macroeconomic environment is expected to register steady growth with a healthy projected real economic expansion of 2.3%

Home Sales Inch Higher: Sales trends are poised for modest growth, with an anticipated 1.5% increase over 2024, reaching 4.07 million annual sales.

Home Prices Rise at a Slower Rate: Mortgage rates are projected to average 6.3% across the full year, with a year-end rate of 6.2%, which will help stabilize mortgage payments despite price increases.

Inventory Continues its Recovery: The housing market is moving away from historically tight inventory conditions. We anticipate an 11.7% increase in available homes for sale in 2025 compared to 2024, although the rate of increase will be lower than the previous year.

Construction and New Home Sales Continue to Outperform: New home sales and construction are expected to outperform existing home sales. On the construction side, we project a 13.8% increase in single-family housing starts, bringing the annual total to 1.1 million, its highest since 2021.

October 2024 Market Report

Median list price for Santa Clara County, CA is $1,899,975. Inventory has held steady at or around 884.

Click Here for Full Report

Santa Clara Valley

Demographics Impact on 2024 Real Estate Market

When rates start to decline, there will be an influx of buyers and sellers. Per lenders and top analysts, we are expected to get into the mid 5.5% range by the 1st quarter 2025! 

Housing demand will be fueled by the largest generation of potential homebuyers – the millennials!

Millennials:

  • US Millennials population is 72 million
  • Medial age of people moving out of their parent’s home is 26
  • Medial age of first-time home buyers is 35

The impact of Baby Boomers:

  • Largest group of all homeowners are aged 65+
  • Buyers aged 57+are more likely to downsize
  • Baby Boomers are 52% of all seniors


The average homeowner equity is about $274K

*Data provided by Buffini & Inman

Why Santa Clara Co. Will Continue to Have a Strong Housing Market

CONDOS / TOWNHOMES

SAN MATEO COUNTY

79

SOLD HOMES ↓22% YOY

33

AVERAGE DAYS ON MARKET ↑32% YOY

$927,000

MEDIAN SALES PRICE ↑1% YOY

$828

PRICE PER SQUARE FOOT ↓2% YOY

SINGLE FAMILY HOMES

SAN MATEO COUNTY

275

SOLD HOMES ↓14% YOY

19

AVERAGE DAYS ON MARKET ↑1% YOY

$1,800,000

MEDIAN SALES PRICE ↑1% YOY

$1,137

PRICE PER SQUARE FOOT ↓3% YOY

CONDOS / TOWNHOMES

SANTA CLARA COUNTY

236

SOLD HOMES ↓23% YOY

21

AVERAGE DAYS ON MARKET ↑11% YOY

$970,000

MEDIAN SALES PRICE ↓2% YOY

$773

PRICE PER SQUARE FOOT ↑2% YOY

SINGLE FAMILY HOMES

SANTA CLARA COUNTY

596

SOLD HOMES ↓8% YOY

16

AVERAGE DAYS ON MARKET ↓24% YOY

$1,173,000

MEDIAN SALES PRICE ↑3% YOY

$1,095

PRICE PER SQUARE FOOT ↑6% YOY

Work With Lynn

She is personally committed to her clients’ success and her impressive results are in selling her listings within 10 days with multiple offers! Contact Lynn for a free consultation on your home.

Let's Connect

Contact Details

Lynn North | CA DRE# 01490039

Phone

(650) 703-6437

Email

[email protected]

Address

161 S. San Antonio Rd. Los Altos CA, 94022

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