Jump on social media and you can find conflicting information all day long. There are a lot of different opinions out there. As your trusted advisors we thought it would be good to let you know the direction we see the market heading based on 4 things that truly affect all real estate markets. Supply, Demand, Equity and Interest Rates. Since hindsight is always 20/20, save this information in your calendar July 2025 with a note to contact Folsom Lake Realty and we can review how we did with our forecast.
EQUITY: We do not see a real estate market crash coming knowing 68% of the United States homeowners have either 50% or more equity in their home or has their home paid off.
Current market supply: less than 1.5 months of inventory
Buyer's market supply: more than 6 months of inventory
Seller's market supply: less than 3 months of inventory
SUPPLY: We have one of the lowest inventories of resale homes on the market going back decades. With just under 1.5 months of inventory in our current market we are 100% in a Seller’s Market. It will be interesting to see if the inventory rises during the second half of this year. We expect the Bay Area Buyer trend to continue and think inventory will be one of the main challenges over the next few years.
HOUSING DEMAND
The median age for a first time homebuyer in the United States is between 34-35 years old. The US population with the largest groups by age are those between 30-34 years old. This group represents the biggest wave of population ever in the history of this country to be rolling into the median age for first time home ownership. Plan on high demand over the next few years.
This article below from Forbes highlights viewpoints from many of the top economists in the real estate & mortgage industry. The predictions are that rates are on their way down over the next few years.
Click on the picture below and it will take you directly to the article.
All information deemed reliable but not guaranteed. If your property is listed with a real estate broker, this is not a solicitation of brokerage services. First Name Last Name, License License
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