The only thing consistent about the 2025 housing market so far is its inconsistency.
We have had slow weeks followed by red-hot weeks. Mortgage rates have fluctuated substantially thus far and have become as unpredictable as the stock market. Home insurance, which was once an afterthought, has also become a point of contention for buyers.
With all this uncertainty, I asked a few of our top Realtors what the market looks like from their perspective.
“It’s currently quite robust,” Clint Moore of Intero said. “In February, transactions closed at more than 9%, on average, over asking. Meanwhile, the number of days a house spends on the market was down sharply from 25 days to 16.”
Sandy Sicsko of Compass said the market remains robust, but nuanced, with strong buyer demand.
“Interest rates are now at a two-year low, making homeownership more affordable for many buyers,” Sicsko said. “Well-priced homes are still receiving solid interest, though buyers are being more selective. However, the fluctuation in the stock market is adding another layer of uncertainty. In this valley, many buyers have a significant portion of their wealth tied up in the stock market which can influence their purchasing power and confidence in making large financial decisions.”
Housing inventory is on the rise, which is typical for this time of year, but overall inventory is still quite restrictive. Michelle Perry of Sereno feels like the spring market is ramping up, and said first-time homebuyers are taking advantage of the lower rates and increased housing stock on the market.
“Pud’s/condo unsold units has risen again to the highest number of available units since 2014, it’s a great time for buyers to buy,” Dave Walsh, past president of the California Association of Realtors, said.
Sicsko has also observed one notable trend this year: Despite economic uncertainty, multiple-offer situations are still happening, particularly for turnkey homes in desirable locations.
“However, condos and townhomes — especially those classified as “unwarrantable” due to Senate Bill 326 — are stagnant on the market for much longer and often experience price drops,” Sicsko said. “Buyers are more cautious about these properties, given the lending challenges and potential for future assessments from their HOA.”
I recently wrote about the upcoming electrification mandates, and some Realtors are trying to get ahead of this.
Moore recently helped to prepare a 100-year-old house for an open house.
“The sellers had performed several electrical and plumbing upgrades in preparation for sale,” he said, adding it helped sell the property quickly. “Savvy buyers who know the difficulty of procuring insurance on older homes and the proposed electrification mandates the Bay Area is facing appreciated the extra work.”
Despite the economic rollercoaster we have been experiencing lately, one thing is for certain, owning real estate is always a solid investment.
Walsh reported recently that if you purchased a home a year ago in Santa Clara County it likely has appreciated 9%. If you purchased your home in 2019 then you likely saw your home appreciate by 50%, and if you were fortunate enough to purchase your home around 2014 you likely experienced a whopping 121% appreciation in the value of your house.
As always, it is essential to surround yourself with a knowledgeable team of Realtors and lenders to help you navigate the market.
San José Spotlight columnist Neil Collins is CEO of the Santa Clara County Association of Realtors, a trade association representing more than 6,000 real estate professionals in Santa Clara County and surrounding areas. Contact Neil at [email protected].
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