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By Diana Mangan, Realtor and Resident | LIFE IN SOLERA | NOVEMBER 2025 | 13 REAL ESTATE REPORT While the data shows a slight dip in median prices overall, it's not a free-fall. Some areas are still seeing prices rise. e market seems to be cooling o slightly, but not crashing. Factors like location, specic property, and interest rates play a big role. Housing Supply: Here's something interesting — the housing supply in Southern California is actually up compared to last year. e Unsold Inventory Index, which measures how long it would take to sell all the homes on the market, was 3.8 months in July, up from 2.9 months a year ago. is means there are more homes available for sale, giving buyers more options. Total active listings were up a whopping 37.7 percent from a year ago! Is SoCal a Buyer's or Seller's Housing Market in 2025? is is where it gets a little tricky. With more homes available, you might think it's a buyer's market. However, prices are still relatively high. It's probably best described as a more balanced market than we've seen in recent years, tilting slightly towards buyers. Sellers might not get quite as many oers as they used to, and buyers have a little more negotiating power. e statewide sales-price-to-list-price ratio was 98.5 percent in July 2025 and 100 percent in July 2024. is shows homes are being sold slightly below asking price now as compared to last year where it sold at the asking price. Market Trends So, what's driving these trends? Here's my take: • Mortgage Rates: Interest rates play a HUGE role. People are less likely to buy when rates are high, which impacts demand. • Economic Uncertainty: When people are worried about the economy, they tend to hold o on big purchases like homes. • Seasonal Factors: Real estate oen has seasonal ups and downs. Spring and summer are typically busier than fall and winter. Impact of High Mortgage Rates Speaking of interest rates, let's talk about their impact. As of Aug. 21, 2025, the average 30-year xed mortgage rate is around 6.58 percent, while the 15- year xed rate is about 5.69 percent. Higher rates denitely put a damper on buyer enthusiasm. Freddie Mac reports that rates have dipped slightly over the summer. While this encouraged some buyers to jump back into the market, many are still waiting for rates to fall further. Economic forecasts suggest 30-year mortgage rates will likely end the year between 6.0 percent and 6.5 percent. (Source: Norada Real Estate, California Association of Realtors)

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