The Housing Market Continues To Adjust To The First Rate Cut By The Federal Reserve In Years.

The housing market continues to adjust to the first rate cut by the Federal Reserve in years, sliding mortgage rates, and an economy that keeps surprising to the upside. Putting all of these factors together, C.A.R. released its forecast for 2025 and expects both home sales and home prices to continue their upward trend.

Home sales are expected to rise by more than 10% next year as dwindling interest rates help to bolster demand and unlock critical housing supply to generate a second consecutive uptick in transactions. Home prices are expected to continue their upward trend as well since the increase in supply will still leave inventory very tight by historical standards. Even though inventory will be up from the past two years, it will only help to normalize price growth from the double-digit range, where it was earlier this year, into the mid-single-digits in 2025.

As always, please reach out if you have any questions or comments about your local market.

DID YOU KNOW?
As climate change intensifies natural disasters, more private companies are working to develop tech to protect against the damage.  AquaFence, launched in Norway in 1999, is a watertight fence that costs anywhere from $350 to $1,000 per linear foot and is made of one-inch-thick panels that secure to the ground to withstand high winds while protecting buildings from flooding. AquaFence says it now protects more than $30 billion worth of real estate in the US across 24 states, shielding everything from hotels to banks to a Shake Shack.

• They also go up quickly: According to the company’s US president, 100 feet of AquaFence can be installed in 30 minutes.
• Crucially, AquaFence walls are reusable and can be used up to 60 times.

 
DID YOU KNOW?
About 55% of government-backed and conventional purchase mortgages in August went to first-time buyers, the highest level for any August in data going back to 2014. (WSJ)

DID YOU KNOW?
When evaluating home insurance, don't only evaluate replacement cost, also evaluate new local building codes that may require more costly construction methods and materials than simply replicating that which currently exists.  (Threads)

DID YOU KNOW?
Certain things indicate trends...such as gold prices. Up over 34% in a year - they can act as a portfolio diversifier and help to mitigate overall risk during uncertain times. When global tensions escalate, or economic conditions worsen, gold prices are likely to rise. If trends continue, analysts have bullish outlooks on the price of gold for the months ahead. But the future is never promised. (AP)

DID YOU KNOW?
It takes six or seven years to get your permits to build in Malibu. (Bloomberg)

DID YOU KNOW?
While inflation hovers around 2.5%, DEFLATION has largely been happening for physical goods such as cars and household appliances, though it has also appeared in categories such as gasoline and various groceries over the past year, according to the Consumer Price Index. Appliances are down over 3% compared to 2023...furniture is down over 5%.  (CNBC)