Coachella Valley Market, 2025. Fannie Mae economists predict at least a 10% increase in sales overall. Our Coachella Valley is seasonal and we are heading into season. It has been a very slow year of sales here in the desert for 2024. Nobody has a crystal ball, but here on the ground, it is sure feeling like 2025 is going to be strong! Local resident/agent, Kim Kelly if you are thinking of buying or selling in the Coachella Valley. 760-285-3578.
Recent declines in mortgage rates and the chance that rates will fall below 6% next year have prompted forecasters to predict that sales in 2024 will total 4.77 million units, still up by approx. 16,000 over 2023. What is still holding sales back is the fact that current homeowners have to be ready to relinquish their low mortgage rates by offering their homes for sale. Fannie Mae feels that resale homes will out pace new homes in 2025.
The price appreciation that we are seeing in our properties is predicted remain steady this year from 3rd and 4th Q of 2024 at an increase of 5.9%, but that appreciation is predicted to fall during 2025. By 4th Q of 2025, price appreciation is predicted to fall to approx. 3.6%. That should help stabilize the market a bit. Mortgage rates are predicted to start 2025 at just under 6%, and end the year at about 5.5%. That should help also.
If you are interested in buying here in our beautiful Coachella Valley, this season will be a good time to start touring. There will be some nice properties for sale, and sellers are becoming more reasonable!