3-2-1: Happy New Year!

January 2nd, 2025

Happy 1st Thursday of 2025!

As we kick off 2025, I wanted to take a quick break from our usual market updates to wish you and your loved ones a wonderful year ahead. Whether you celebrated with a quiet evening at home or had a little too much fun, I hope you had a great one. It's an exciting time to "start fresh" on goals, objectives and healthy challenges.

I'm excited to continue serving your real estate needs in the new year. Here's to fresh starts, new opportunities, and making more dreams of "home" come true in 2025.

We'll get back to the typical 3-2-1 format next week. Here are the market stats for your viewing pleasure. Once the final 2024 stats are released next week I'll share the year in review.

Inventory dropped below 4,000 for the first time since March, down from the peak of 5,600 active homes for sale in September. At the beginning of 2024, there were just over 3,000 homes for sale. Inventory climbed throughout the year, but the seasonal peak occurred later than usual. Typically, inventory levels and activity peak during the summer months of June and July. Barring any "black swan" events this year, I expect inventory to steadily climb back to around 5,000 or more over the course of the year—starting now!

The reason I’m so focused on inventory is that it has always been the primary factor driving prices. I didn’t study economics in college, but this is basic Econ 101. If demand rises as projected and inventory doesn’t increase significantly, we could see even more price appreciation than experts are currently predicting.

1 Thought

I mentioned this a few weeks ago—I don’t make predictions anymore! There are simply too many factors at play in the world right now. That said, I do enjoy reading what the “experts” are forecasting for this year:

​What to expect from U.S. home prices in 2025, as predicted by 26 different forecast models​

The aggregates

UP: 23 of the 26 firms expect national home prices to rise in 2025

DOWN: 3 of the 26 firms expects national home prices to fall in 2025

Among the 26 forecasts tracked by ResiClub, the average prediction is a +2.7%** increase in U.S. home prices in 2025.

Josh Meltzer DRE 02098859 REALTOR® M: 858.585.0309​ ​Josh@Talechia.com​

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DISCLAIMER: Due to recent changes by California Association of Realtors, and the SDMLS Clear Cooperation Policy (the “Policy”), Brokers are limited in their ability to share off-market properties. It is the intent of this letter to be in compliance with the Policy. For this reason, Talechia & Associates can only share such property information with clients of Talechia & Associates. If you would like more information on our properties that are not publicized in the MLS, and becoming a client of Compass, please contact Josh (858) 585-0309 or Talechia (858) 229-2181

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628, 01527235, 01527365. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to the accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.