What Everyone’s Getting Wrong About the Rise in New Home Inventory

A Shifting Market Means Smarter Pricing A few years ago, homes were flying off the shelves and getting multiple offers well over asking price. It felt like sellers could name their price and still have buyers lined up at the door. But today’s housing market is different. Inventory has grown, buyers are more selective, and homes are sitting on the market longer. Many sellers are having to adjust their price expectations to stay competitive. The Disconnect Between Buyers and Sellers A recent Realtor.com survey shows 81% of home sellers still believe they’ll get their asking price or more. But actual data tells a different story: According to the National Association of Realtors (NAR), 44% of recently sold homes went for less than the asking price. 1 in 3 sellers had to cut their price at least once before their home sold.

The California real estate market is showing strong signs of recovery , with home sales reaching their highest level in over two years . Declining mortgage rates and an increase in available inventory have fueled a resurgence in buyer activity, signaling a potential shift in the market. However, regional trends remain mixed , and uncertainty still lingers as the market heads into the second quarter of the year. Let's take a closer look at the key insights shaping California's real estate landscape.

Avoid Surprises and Keep Your Home Sale on Track Selling a house comes with a lot of moving pieces, and the last thing you want is a deal falling apart over unexpected repairs uncovered during the buyer’s inspection. That’s why it pays to anticipate potential issues before buyers ever step through the door. And one way to do that is with a pre-listing inspection. What Is a Pre-Listing Inspection? A pre-listing inspection is essentially a professional home inspection you schedule before putting your house on the market. Just like the inspections buyers conduct after making an offer, this process identifies any issues with your home that could impact the sale—such as structural problems, outdated HVAC systems, or necessary repairs. While it’s a great option for those who don’t like surprises, Bankrate explains that it’s not always necessary: “While it can be beneficial for a seller to do, a pre-listing inspection isn’t always necessary. For example, if your home is relatively new and you’ve been the only owner, you’re most likely already aware of any big issues that could impact a sale. But for an older home, a pre-listing inspection can be very insightful and help you get ahead of any potential problems.” The key is deciding whether the benefits outweigh the costs for your situation. A few hundred dollars now could save you time, stress, and negotiation hassles later on. Why a Pre-Listing Inspection May Be Worth It in Today’s Market In today’s market, buyers are more cautious about their spending and want to ensure their home is a sound investment. A pre-listing inspection can be your secret weapon to boost buyer confidence and ensure a smoother selling process. Here’s how: Gives You Time To Make Repairs: Knowing about issues ahead of time allows you to fix them on your schedule , rather than scrambling to make repairs when you’re under contract. Avoids Surprises During Negotiations: When buyers find problems during their inspection, it can lead to last-minute negotiations, price reductions, or even a deal falling through. Addressing these concerns in advance means fewer unexpected roadblocks. Helps You Sell Faster: According to Rocket Mortgage , homes in top condition tend to have fewer buyer concessions and shorter negotiation timelines , helping you sell more quickly. How Your Agent Will Help Before scheduling an inspection, be sure to talk to your real estate agent . They’ll help you decide whether a pre-inspection is worthwhile based on the current market conditions in Petaluma, Rohnert Park, Novato, and Marin County. If moving forward with an inspection makes sense, your agent will assist with: Prioritizing Repairs: If issues arise, your agent will help you determine which repairs will be deal-breakers for buyers and what you can skip. Disclosure Requirements: In some states, sellers must disclose known issues. Your agent will ensure you comply with local regulations and guide you through the process. Bottom Line While a pre-listing inspection isn’t required, it can be especially helpful in today’s market. By understanding your home’s condition ahead of time, you can take control of the process and make informed decisions about what to fix before listing. Skipping this step means you could be just as surprised as your buyer by what their inspection reveals—potentially putting your sale at risk. Would you rather fix issues now or scramble to save the deal later? Let’s connect to discuss whether a pre-listing inspection makes sense for your home!

A New Year Brings Fresh Opportunities in Real Estate! As we step into 2025, the real estate market is already showing signs of its annual rebound! Interest rates have dipped below 7%, and while consumer confidence wavers, local housing markets—including Petaluma, Rohnert Park, and Novato—are heating up.📈 What This Means for Buyers & Sellers: New listings and contracts are on the rise after December’s seasonal slowdown. Spring is approaching, bringing the busiest time of year for home sales. With mortgage rates expected to remain higher for longer, we may see more homeowners adjusting to this "new normal," increasing market inventory. 💡 Key Takeaway : If you're considering buying or selling a home in Petaluma, Rohnert Park, or Novato, now is the time to strategize! The market is shifting, and staying informed can help you make the best move.📩 Thinking of making a move? Contact me today at Katia.Bidaurreta@compass.com to discuss how you can take advantage of this evolving market! #PetalumaRealEstate #RohnertPark #Novato #BayAreaHomes #SonomaCountyLiving #MarinCountyRealEstate #HousingMarket2025

Recent Statistics and News: LA Fires As of this week, ongoing wildfires in the Los Angeles area have affected over 15,000 acres of land, forcing the evacuation of thousands of residents. Local officials report that 75% of the fires are contained, but high winds and dry conditions continue to pose significant challenges. Emergency services have established shelters for displaced families and pets, emphasizing the importance of preparedness during wildfire season. For live updates, monitor the California Department of Forestry and Fire Protection (CAL FIRE). When it comes to emergency preparedness, a good place to begin is by creating a Family Emergency Plan. This plan should involve every member of your household and cover essential actions to ensure everyone’s safety during unexpected events. Ten Essential Actions for Your Family Emergency Plan Learn the threats in your area: Use resources like the California Governor’s Office of Emergency Service’s MyHazards tool to identify potential risks. Identify meeting places for your family: Choose safe spots outside your home and neighborhood. Select your out-of-state contact: Have someone outside the impacted area to coordinate information. Know your evacuation routes: Map out the quickest and safest way to leave your home. Locate utility shut-offs: Ensure everyone knows how to turn off water, gas, and electricity. Understand school and adult-care emergency policies: Know shelter locations, supplies, and transportation plans. Identify safe spots in your home: Sturdy tables, desks, or interior walls are best for cover. Keep an inventory of medications: Prepare extra supplies for emergencies. Make special provisions: Plan for children, seniors, pets, people with disabilities, and non-English speakers. Schedule annual disaster drills: Regularly practice your family’s emergency plan. Animal Preparedness Animals are an important part of your family, and they require their own emergency plan. Whether you’re away for a day or a week, having essential supplies and plans in place for your pets is crucial. Key Tips for Animal Preparedness Be Sure All Pets are Clearly Identified : Ensure dogs and cats have collars with current identification. Attach Temporary Shelter Info : Include your temporary shelter’s contact information on their collar or tag. Consider Microchipping : Register your pet’s microchip and keep the carrier’s contact details handy. Keep Supplies Ready : Store non-expired food, medications, and essential items in sturdy, portable containers. Quick Tip : Track your pet’s microchip registration and include the phone number with your evacuation papers. Wildfire Preparedness for Your Home Wildfires are a significant threat in many regions. Preparing your home and family can make all the difference. Prepare Your Home for a Wildfire Home Maintenance : Regularly clean gutters and trim tree limbs near your home. Test smoke alarms and ensure fire extinguishers are operational. Landscaping : Use fire-resistant plants and materials. Maintain defensible space zones to keep wildfires at bay. Fire-Resistant Materials : Consider using non-combustible roofing, siding, and fire-rated glass in home renovations. Create a Survival Kit : Include essentials like water, food, and important documents. As a Wildfire Approaches Monitor Conditions : Stay informed through local news and follow evacuation instructions. Practice Your Plan : Review emergency plans and designate meeting places. Prepare Your Home : If time allows, close windows, doors, and blinds, and shut off utilities. Ready Your Vehicle : Keep your car fueled, packed, and ready to go. During and After a Wildfire Evacuate Immediately : Follow your emergency plan and wear protective clothing. Await the "All Clear" : Only return home when officials declare it safe. Check Grounds and Dispose of Damaged Items : Inspect for hot spots and discard contaminated food or medication. Bottom Line Emergency preparedness is a shared responsibility that can save lives. By creating a thorough Family Emergency Plan and including provisions for pets, you’ll be better equipped to handle disasters. For more wildfire safety tips, visit the Insurance Institute for Business & Home Safety® website. Coming Together for LA Fire Relief The recent fires in LA County have caused unimaginable pain and loss for so many families. Essentials like clothing and supplies have been completely wiped out, leaving communities in need of urgent support. 💔 Now is the time to come together and make a difference. Here’s how you can help:

Wondering what’s in store for the housing market this year? And more specifically, what it all means for you if you plan to buy or sell a home? The best way to get that information is to lean on the pros— your trusted local realtor and real estate agent. Experts are constantly updating and revising their forecasts, so here’s the latest on two of the biggest factors expected to shape the year ahead: mortgage rates and home prices. Will Mortgage Rates Come Down? Everyone’s keeping an eye on mortgage rates and waiting for them to come down. So, the question is really: how far and how fast? The good news is they’re projected to ease a bit in 2025. But that doesn’t mean you should expect to see a return of 3-4% mortgage rates. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.” And other experts agree. They’re forecasting rates could settle in the mid-to-low 6% range by the end of the year.

Let’s be real – buying a home right now is tough. You’re scrolling through listings, rushing to open houses, and maybe even losing out to more competitive offers. Somewhere along the way, you might’ve heard the reason it’s so hard to find a home is because big Wall Street investors are swooping in and snatching up everything in sight. But here’s the thing: that’s mostly a myth. While investors are part of the market, according to Redfin, they’re a relatively small part:

Hey there, fellow homeowners and future homebuyers! Let's break down what Jerome Powell from the Federal Reserve recently said about interest rates and inflation. Powell basically said on March 6th 2024 the Fed is thinking about cutting interest rates later this year, but they want to be sure that inflation is calming down first. They're not looking for better numbers, just more consistent ones.

If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.