How's The Market?

JANUARY 2025 WRAP-UP

The U.S. economy closed 2024 on a strong note, with GDP growth exceeding initial estimates and job gains remaining steady. Consumer spending continued to drive economic expansion, though the labor market showed signs of cooling. Inflation, while lower than its 2022 peak, remains above the Federal Reserve’s 2% target, suggesting that interest rates may stay elevated for longer than previously expected.

The Federal Reserve kept its benchmark rate unchanged, and mortgage rates have now dipped below 7%, offering some relief to buyers. Freddie Mac reports that recent data shows that purchase applications modestly exceeded those from 2024—an encouraging sign of resilient demand.

Consumer confidence has become somewhat uncertain, as stock markets remain high yet volatile. Additionally, California’s recent devastating wildfires have inflicted significant human and financial costs that will take years to fully assess, further complicating the broader economic outlook.

In Marin County, the typical new year rebound is in full swing. New listings have bounced back from December lows, and while median home prices have decreased 5.7% year-over-year, demand remains strong. New escrows have increased by 28.8%.

Looking ahead, we expect the market to accelerate rapidly in the coming months as the spring season gains mome

See market stats