(415) 717-7243
What’s in Store for the Housing Market in 2025?
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.
However, you should remember this forecast could change as new economic data emerges. Inflation, job markets, and other economic drivers can all influence mortgage rates.
This is where working with a trusted real estate agent like Katia Bidaurreta at Compass can make all the difference. She can guide you through the process and help you lock in the best rate when the time is right.
Will Home Prices Fall?
The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas—just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range.
So, if you’re planning to buy a home in Petaluma County or Marin County, now is the time to act before prices rise further. And if you’re looking to sell, you can still expect to benefit from healthy price growth.
Keep in mind, though, the housing market is hyper-local. Areas like Petaluma County and Marin County have unique trends. This is why you need a local realtor who knows the market inside and out. Katia Bidaurreta, a trusted Compass real estate agent, can provide insights into local trends and help you make the right move.
Supply and Demand Dynamics
Even though there are more homes for sale now than there were a year ago, it’s still not enough to keep up with demand. As Redfin explains:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
This dynamic creates opportunities for sellers to take advantage of high demand and rising prices. Buyers, on the other hand, need to act quickly and work with the best realtor to find great deals and secure favorable terms.
Bottom Line
The housing market is always shifting, and 2025 will be no different. With mortgage rates likely to ease a bit and home prices rising at a more sustainable pace, it’s all about staying informed and making a plan that works for you.
Whether you’re buying or selling in Petaluma County, Marin County, or beyond, having an experienced real estate agent like Katia Bidaurreta at Compass by your side is essential. Known as the best realtor in the area, Katia is your go-to local realtor for navigating today’s market.
Let’s connect so you can get the scoop on what’s happening in our area and advice on how to make your next move a smart one!
Foreclosure headlines can be misleading. See why today’s market is not 2008, and how equity changes the story for Sonoma, Marin, and Napa homeowners.
Thinking about selling this spring? Learn how staging your house can help you sell faster and for more in Sonoma, Marin, and Napa Counties.
Is late May the best time to list your house? Explore the North Bay selling window with charts, timing tips, and Katia Bidaurreta’s local guidance.
Think you need 20% down? Most first-time buyers don’t. See what buyers really put down and how Katia Bidaurreta can help in Sonoma, Marin, and Napa.
3 Things That Are Not Going To Happen in Today’s Housing Market
Earth Day Homebuying: How to Choose a More Sustainable Home
The 10 Best Markets for First-Time Buyers This Spring
This is a subtitle for your new post
Wondering If You Should Still Buy a Home Right Now? Here’s What To Keep in Mind
When buying a home feels out of reach, what are some families doing instead? They're buying multi-generational homes together in Sonoma, Marin, and Napa Counties—pooling incomes to afford $773K-$1.3M medians while grandparents help with childcare. Sonoma, Marin, Napa Affordability Crunch You crunch the numbers for a Petaluma 3-bed at $958K. Add $1,800/month childcare. Something gives. Sonoma medians sit at $773K, Marin $1.3M+, Napa luxury higher. Rates near 6% help, but down payments and daycare eat budgets. Families adapt: multi-generational buys. NAR says 14% of 2025 buyers went this route—up sharply. Childcare (6%) and grandkids (12%) now top reasons. In wine country, ADU-friendly homes make it work. Katia Bidaurreta at Compass sees it daily. Her Petaluma clients buy Santa Rosa properties with in-law suites. Finance background spots the math. How Multi-Gen Living Works Here Parents, grandparents, sometimes aunts buy together. Shared mortgage. Built-in childcare. Napa vineyard views for all. Solves two problems: Splits $4,500 payments three ways. Cuts $18K/year daycare when grandma watches kids. Why It's Growing Fast Sonoma inventory up, but prices firm. Marin families priced out of Mill Valley pivot to Novato multi-gens. Napa seeks estate-style with guest houses. Your Rohnert Park starter won't cut it. Buyers want: Must-Have Home Features Downstairs primary suite Separate entrance ADU Big kitchen for family meals 4+ beds, office flex Sonoma Plaza walkable or Marin views Pool/hot tub for grandkids Petaluma farmhouses convert garages easy. Santa Rosa new builds include casitas. Questions Before You Buy Who's on title? Loan? What if grandma moves? How split utilities, repairs? Privacy enough? Exit plan in 5 years? Talk attorney first. Katia connects you—stays in real estate lane. Local Examples That Work Petaluma: $1.1M craftsman, main house + ADU. Three incomes qualify easy. Novato: $1.5M mid-century, guest wing rented for mortgage offset. Napa: $2M vineyard estate, grandparents get pool house. Katia closed similar: Portuguese family pooled for Santa Rosa 5-bed. "Made homeownership real," they said. Watch Out For These Family drama over decisions One person wants out, others can't buy Zoning limits ADU short-term rental Inheritance fights later Compass title partners smooth ownership splits. Your Next Move Multi-gen beats waiting. Sonoma's 42-day market moves if priced right.
