A peek into the future of Bay Area’s housing market is hinting at something potential buyers have been begging for.
At least one agency says they expect more houses to hit the market in 2025.
Something homebuyers have been waiting for.
“I have a savings account for a down payment for first time buyers,” said Frida Ramirez of San Jose.
But, she says, something's gotta give.
"I would say probably a lower rate," she said.
Mortgage rates, consistently above 6% for more than a year now, combined with high prices, have been keeping many potential buyers -- and sellers -- on the sidelines.
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"The difference for them to do the move up or downsize is going from a 3% to a 6.5 or 7% mortgage is quite a difference," said Bay Area broker Tim Yee.
But the National Organization of Realtors now says it expects more homes to go on the market this year.
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"We absolutely have to see more inventory for the sake of a balanced market," said Silicon Valley agent Linsie Dridley.
More homes on the market typically means lower prices. And that, according to Dridley, is what she hears potential buyers waiting for.
"Everyone has settled in and gotten used to the fact that interest rates are somewhere around six, and we're just staying there for a while, and I think now they can feel the progress to take action," she said.
Moving forward, there are also economic concerns that come with a new year and a new administration.
Things like tax cuts, tariffs, and immigration cutbacks often raise consumer prices, which would also be felt in our housing market.
