Housing Market Predictions 2025: Should You Buy or Sell in the Trump Era?
As a realtor in Los Angeles County, I keep a close watch on the trends that shape our local real estate market. With Donald Trump back in office, many are wondering how this new term might impact housing—especially those looking to buy or sell soon. Here, we’ll dive into the key factors driving the 2025 market to help you make an informed decision. What Does the Economy Say? The broader economy is often a major force behind housing trends. Economic growth in 2025 is expected to stabilize at a moderate pace, a change from the higher inflation we saw over the past couple of years. According to the Mortgage Bankers Association’s latest forecast, inflation is likely to ease gradually, which could help stabilize housing costs and bolster homebuyer confidence. Slow but steady growth means more people are likely to stay in the housing market, keeping demand solid. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), has noted that an economy on stable footing can positively influence housing demand: “If inflation continues to calm, we could see more predictability in home values, which is key for both buyers and sellers.” A stable economic backdrop often supports steady home prices, which is good news for those considering entering the market in 2025. What’s Happening with Mortgage Rates? Mortgage rates are still high, but experts believe we may have reached a plateau. According to Freddie Mac, the 30-year fixed mortgage rate currently averages around 7%, a level we’re likely to see into early 2025. While this rate may feel high compared to the pandemic lows, it’s still manageable in the long term, especially if inflation continues to drop. Mike Fratantoni, Chief Economist at the Mortgage Bankers Association, notes that stable interest rates can boost buyer confidence: “When people know what to expect, they’re more willing to commit, especially in a market like Los Angeles where every percentage point counts.” For sellers, this stability means they may continue to attract buyers even with higher financing costs. Will We See More Homes on the Market? Los Angeles has long struggled with a shortage of available homes, and while the market has seen gradual improvements, inventory remains tight. The National Association of Home Builders (NAHB) recently estimated that new home construction could increase by around 5% next year if economic conditions remain favorable, which could add options for buyers over time. This slight increase in supply could ease some pressure on buyers without drastically impacting prices for sellers. “The housing market is still very undersupplied,” says Robert Dietz, Chief Economist at NAHB. “Builders are working to close that gap, but it will be a gradual process.” This means buyers may have more options in the coming year, but sellers will likely still benefit from a strong market. What About Buyer Demand in Los Angeles? Los Angeles continues to draw people looking for its unique lifestyle, even with high prices and remote work options elsewhere. According to Zillow’s 2024 Market Report, buyer demand is projected to remain stable in high-demand areas like Los Angeles. This trend favors sellers, as well-located properties can still command high prices, especially as buyers compete for limited inventory. Danielle Hale, Chief Economist at Realtor.com, points out that areas with high quality of life—like Los Angeles—often stay resilient in shifting markets: “Buyers are willing to pay a premium for location, especially when the amenities and lifestyle align with their long-term goals.” This ongoing demand means that if you’re looking to sell, your property’s unique location and amenities will likely continue to appeal to buyers in 2025. Federal Policy and Real Estate Government policies on taxes, housing incentives, and immigration all have an impact on housing. With a new administration in place, we may see policies that incentivize homebuilding or ease regulatory burdens, potentially opening up more housing opportunities. According to the Bipartisan Policy Center, zoning and permitting costs can add between 10-20% to home construction expenses, and reducing these could make new builds more affordable. Trump’s administration has proposed relaxing zoning rules and offering tax incentives for developers, which could lead to more homes hitting the market over time. “Lowering construction costs is a critical part of the equation,” explains Alex Beene, a financial literacy instructor, “but it’s unlikely to solve the entire inventory issue.” While this may encourage new builds, in cities like Los Angeles, additional factors like zoning laws and land availability will also play a role. Should You Buy or Sell Before 2025? For Buyers: Better Predictability in Rates: Locking in a rate now could be a strategic move if you’re concerned about potential rate hikes later. Mortgage rates are likely to hold steady, and entering the market now means you’ll have the flexibility to refinance if rates decrease. Increasing Inventory: With a slight uptick in new construction expected, you might find more options if you’re looking for specific features or neighborhoods in Los Angeles County. For Sellers: High Demand: Current market conditions favor sellers. Buyers are still eager, especially as Los Angeles remains a sought-after area. Selling now could maximize your return before inventory grows. Attractive Pricing: The lack of inventory still supports strong pricing, so listing now may bring in motivated buyers who can act quickly. What’s Next for the Housing Market? Los Angeles real estate has weathered many economic cycles, and 2025 looks poised for more stability than recent years. With steady demand, modest economic growth, and manageable interest rates, the market is expected to be favorable for both buyers and sellers. Whether you’re considering buying or selling, aligning your move with these market dynamics can help you get the best possible outcome. If you’d like to discuss how these trends affect your specific situation, reach out—I’d be happy to provide insights and help you make a well-informed decision.
Hermosa Beach Holiday Movie Night 2024: Join Us for The Nightmare Before Christmas!
Date: Friday, December 13, 2024Time: 5:00 PM - 8:00 PMLocation: Community Center, 710 Pier Avenue, Hermosa Beach, CA 90254Cost: Free with Toy Donation We’re thrilled to partner with the City of Hermosa Beach for a holiday night you won’t want to miss! Join us at this year’s Holiday Movie Night for a special screening of The Nightmare Before Christmas, along with plenty of festive fun for the whole family. What’s Happening Kick off the night at 5 PM with holiday activities and fun for the kids, a photo booth, and treats like warm cocoa to keep things cozy. And yes, Santa himself will be there for photos! Then, settle in for the movie at 6:30 PM to enjoy this holiday classic with your friends and neighbors. Supporting Our South Bay Families As proud partners of this event, Greenspan Realty will be running the holiday toy drive. In lieu of admission, we ask each family to bring a new, unwrapped toy, which will go to families in need right here in South Bay. Let’s make the season brighter for everyone in our community! Reserve Your Free Tickets! While this event is free, seats are limited, so we encourage you to reserve your tickets in advance. [Reserve Your Tickets Here] We can’t wait to see you there to celebrate the season, spread some holiday cheer, and enjoy a magical night together!
11 Essential Facts Every Veteran Should Know About VA Loan Rates and Benefits
For the millions of Veterans and active-duty Service members across the United States, VA home loans are an invaluable resource. Yet, these benefits often go untapped. Less than 6% of eligible Veterans have used VA loans in recent years, often due to misunderstandings or simply not knowing all the options available. Whether you’re considering your first home or looking to refinance, here’s a closer look at how VA loans can provide a smooth, affordable path to homeownership—and why understanding these 11 facts is essential. 1. Zero Down Payment: A Key Advantage One of the most appealing aspects of a VA loan is the ability to purchase a home with zero down payment. Unlike conventional loans, which typically require at least 3.5% down, VA loans allow you to finance 100% of your home’s value. This feature makes buying a home achievable even for Veterans without substantial savings. Additionally, VA loans don’t require monthly mortgage insurance, freeing up cash flow and making monthly payments more affordable. 2. No Mortgage Insurance Required Mortgage insurance is a significant cost for most homebuyers, as it’s required by conventional loans with less than 20% down. VA loans, however, are exempt from this requirement. This can save Veterans hundreds of dollars monthly, amplifying their buying power and making VA loans more attractive than many other loan options. 3. Reusable Benefit for Life A little-known fact is that VA loan benefits are not one-time-only. Once you pay off a VA loan, your eligibility is restored, allowing you to reuse the benefit for future purchases. Whether you plan to buy a different home or refinance, the VA loan benefit remains available to you indefinitely. 4. Flexible Eligibility That Never Expires VA loan eligibility doesn’t have an expiration date. If you’re a Veteran who served decades ago, you may still qualify as long as you meet the service requirements. Most Veterans need to provide a DD Form 214 to confirm eligibility and request a Certificate of Eligibility, which can be done through a VA lender or the eBenefits portal. 5. Eligibility for Surviving Spouses The VA loan benefit extends to un-remarried surviving spouses of Veterans who died in service or as a result of a service-related disability. They are eligible for the same terms, including zero down payment and no mortgage insurance or funding fee, making the benefit a helpful resource for families who have lost a loved one in service. 6. Lower Interest Rates and Long-Term Savings VA loans typically offer interest rates that are 0.25% lower than conventional loans, thanks to the backing from the Department of Veterans Affairs. This lower rate makes a significant difference over time, reducing your monthly payments and making homeownership more affordable. With rates as a focal point, VA loans often remain among the lowest-cost mortgage options, supporting Veterans with stability and affordability. 7. Access to Private Lenders VA loans are unique because they are issued by private lenders like banks and credit unions but are guaranteed by the Department of Veterans Affairs. This allows Veterans to work with lenders they’re comfortable with while benefiting from favorable loan terms. The VA’s guarantee also incentivizes lenders to offer competitive interest rates and more lenient loan terms. 8. Versatile Uses: Purchase, Refinance, or Cash-Out Options VA loans aren’t just for first-time homebuyers. They’re flexible enough to support various financial needs. With a VA loan, you can buy a home, refinance an existing mortgage, or even opt for a cash-out refinance. The VA Interest Rate Reduction Refinance Loan (IRRRL) is especially useful if you want to lower your rate and monthly payments without extensive paperwork. 9. Lenient Credit Requirements For Veterans with less-than-perfect credit, VA loans can be a lifeline. Unlike other loan types, VA loans do not have a minimum credit score requirement, though individual lenders may set their own criteria. This leniency makes VA loans more accessible for Veterans who may be rebuilding their credit, providing them with a fair chance to secure home financing. 10. Funding Fee Waivers for Disabled Veterans VA loans come with a funding fee designed to support the program and keep it available for future borrowers. However, disabled Veterans are exempt from this fee—a valuable cost-saving feature. Even if you’re eligible for VA disability benefits but are currently receiving retirement or active-duty pay, you still qualify for this exemption. 11. Options Beyond Single-Family Homes: Condominiums and More VA loans can be used for various property types, not just single-family homes. Eligible buyers can purchase condominiums approved by the VA, which may be a more affordable entry into homeownership, especially in urban areas. The VA’s condo search tool is an excellent resource to locate VA-approved condos in your area. 12. Lesser-Known VA Loan Benefits In addition to these main benefits, a few lesser-known features make VA loans even more appealing: VA Loan Assumption: VA loans are assumable, meaning a buyer can take over your VA loan under the same terms. This can be an attractive selling point if interest rates increase. Secondary VA Loan Eligibility: In certain cases, Veterans can obtain a second VA loan while retaining their first loan. This is possible if you have entitlement remaining, allowing for greater flexibility in property purchases. Construction and Renovation Loans: VA loans are also available for new home construction and renovations, which is a great option for Veterans looking to customize a home from the ground up or improve an existing property. Take Full Advantage of Your VA Loan Benefit With benefits like zero down payment, no mortgage insurance, and low-interest rates, VA home loans are one of the best financing options for Veterans and active-duty Service members. Whether you’re considering buying your first home, refinancing, or exploring investment options, the VA loan is designed to help you achieve homeownership in the most affordable way possible. By maximizing your VA loan benefits, you’re not only investing in property but in a stable future for you and your family. Don’t miss out on the opportunity to explore what a VA loan can offer. Ready to get started? Let’s connect today to review your options and set you on the path to homeownership!
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