Market Update January 2025
Westlake Village, Agoura Hills, Oak Park, Thousand Oaks and Newbury Park
By: Michael Rice | January 4, 2025
My View From Inside
The uneasiness surrounding the US presidential election put a damper on the real estate market throughout 2024. Many potential home buyers were reluctant to make such a large purchase, concerned what may happen if we had another close and contested election.
The fear of civil unrest coupled with high prices and stubborn interest rates caused many buyers to take a “wait-and-see” approach to the market.
Now that we’re past that, buyers are coming back. And sellers are too.
What’s in store for 2025
Home prices ended the year down 7.4% from last December to $1,019,000 in the Conejo Valley. But don’t read too much into that number; low volume of sales in December (120 sales) can throw off the numbers a bit.
Home prices have been trending upward slightly and are expected to continue up in 2025. The California Association of Realtors forecasts home prices to increase 4.6% in 2025 after increasing approximately 7% in the state in 2024.
Conejo Valley Median Home Price
Mortgage rates continue to drive us all a little crazy – mortgage rates drop in anticipation of a Fed rate cut, the Fed cuts rates, and then mortgage rates slowly creep back up.
2024 ended with rates in the upper 6s – still below the 7.22% peak in May, but the highest since July. However, the forecast is for rates to bounce between the low to mid 6s throughout the year.
Sales volume in CA is expected to increase about 10% in 2025 after sales dropped to the lowest volume since the mid 90s – down 40% since the peak of the pandemic.
More sales volume means more options for home buyers, less bidding wars, and a little more competition for home sellers – keeping home prices in check.
Bottom Line…
The real estate market is poised for a rebound in 2025. While interest rates remain a key factor to watch, rising sales volumes and steady home price appreciation should bring more balance to the market.
For Buyers: Expect more inventory and fewer bidding wars, making it easier to find your dream home.
For Sellers: While the market remains favorable, pricing your home competitively will be crucial to attract buyers in a more balanced market.
Ready to talk? Feel free to reach out (818) 384-9929 | Michael@ConejoValleyGuy.com
Monthly Market Update - Delivered
Get the Market Update emailed to you each month!
What to expect moving forward
- Expect to see a more consistent flow of new listings hitting the market as the year gets going.
- Expect mortgage rates to bounce between the low to mid 6s throughout the year.
- Buyers are coming back faster than new listings are hitting the market. Be prepared to act quickly for the popular neighborhoods.
- Expect homes that have been sitting on the market for 30 days or more to take a lower offer. Don’t be afraid to try!
Seller’s Corner
The uptick in competition from other homes for sale is shifting the market away a bit from sellers. It’s definitely not the seller’s market of years past. It’s critically important to price your home correctly from the beginning. Buyers are eagerly waiting to pounce on the popular homes. If you miss that first window to attract a buyer, you may have a tough time getting them to come back again once you inevitably drop the price.
What's The 2025 California Forecast?
According to the California Association of REALTORS
- The median price of a home is expected to increase 4.6% in 2025.
- The number of home sales is expected to increase 10.5%.
- Interest rates are expected to average 5.9% in 2025.
Market Snapshot
Home Prices
- The median price of a Conejo Valley home was down in December to $1,019,000.
- That’s 1 consecutive month down year over year.
- Prices are down 7.4% from $1,100,000 last December.
- And down $66,000 from last month.
For Sale
- December ended with 231 homes for sale.
- Up 6.5% from last December.
- That’s 14 more homes than last year.
- And 80 fewer homes than last month.
Days on Market
- It took 51 days on average to sell a home in December.
- Up 34.2% from last December.
- That’s 13 more days than last year.
- And 18 more days than last month.
