Real Estate Predictions for 2025

As we get closer to 2025, the real estate market is about to change significantly due to economic shifts and buyer preferences. This blog will highlight key predictions that might affect the housing market. This will help you find both opportunities and challenges coming your way.

1. Increased Demand for Suburban and Secondary Markets

The migration to suburban areas during the pandemic has had a lasting impact. As many workers have transitioned to remote and hybrid work models, many have chosen to settle in suburban and secondary cities. 

In 2025, we anticipate continued interest in these secondary markets, as many buyers prioritise affordability, larger living spaces, and a high quality of life.

Pro Tip: If you’re considering selling in these areas, this could be a prime time to list your property.

2. Sustainability Takes Center Stage

Green homes will be a major focus as buyers prioritise energy-efficient features and sustainable materials. Properties equipped with solar panels, energy-saving appliances, and smart home systems will command higher premiums, creating a home so efficient it pays you back.

If you are looking for a new, more resource-efficient property, Randy Mack a REALTOR® with NAR’s GREEN Designation can help.

3. Rising Interest Rates Stabilize

While interest rates have been a hot topic recently, 2025 may bring more stability. This could encourage hesitant buyers to re-enter the market, though affordability will remain a key concern.

According to Freddie Mac, since September, rates have been on the rise again and ended the month of November at 6.81% after hitting 2-year lows of 6.08% in late September. Lawrence Yun, chief economist of the National Association of REALTORS®, says the rates should stabilise at the low end of that range for 2025 and 2026.

NAR, What’s Next for the 2025 Housing Market?: Factors that could change Yun’s forecast: a reduction in the budget deficit, an easing of housing regulations holding up home builders, or a significant increase in the labour force to help lower inflationary pressures. In such cases, “mortgage rates could come down quickly,” Yun noted.

Pro Tip: Buyers should monitor rates closely and consider locking in when favourable terms are available.

4. Fewer Deals for Renters

Renters who received good deals in 2024 because of many new apartment buildings may find fewer offers in 2025. The pace of new construction is expected to slow down, with new rental buildings predicted to drop by 21% in the first half of 2025 and further declines expected throughout the year.

This drop in available apartments will likely stabilize rental prices and give renters less power to negotiate for extras like a free month of rent.

5. Increased Housing Inventory

Inventory levels are up by 27% compared to last year. New home construction is also rising, which could help ease housing costs. Yun predicts a continued increase in housing inventory and new builds through 2025.

Housingwire: As it continues, we’re slowly getting closer to the old normal levels. While we have 27% more homes for sale now than last year, we have 22% fewer homes on the market than at the end of 2018. By the end of next year, we should be back to old normal inventory level.

6. Positive Outlook for Home Sales

Improved job numbers and recent stock market gains could encourage more Americans to act on their homebuying plans.

NAR: Pending home sales rose 3% year-over-year in September 2024, suggesting that “the worst is over,” according to Yun. With growing inventory and pent-up demand from a population increase of 70 million since 1995, the housing market may be poised for a strong rebound.

7. Millennial and Gen Z Buyers Dominate

Younger generations will continue to drive the housing market, bringing preferences for tech-savvy homes, walkable neighbourhoods, and urban amenities.

Sellers should consider these trends when marketing properties.

8. Increased Focus on Climate Resilience

With climate change impacts becoming more pronounced, properties in areas prone to natural disasters will need to prioritize resilience. Buyers will seek homes with features like reinforced structures and flood protection.

The real estate market in 2025 offers new opportunities and challenges. Knowing these trends can help you manage your buying, selling, or investing with confidence. Being prepared and adaptable will be essential for success in the coming year.

If you’re ready to take the next step, don’t hesitate to reach out. A knowledgeable real estate agent can provide invaluable insights, helping you make informed decisions in this dynamic market. Call us!

A Guide to Buying and Selling a Home at the Same Time

Buying and selling a home simultaneously can feel like a balancing act. Here’s where to begin to maximise your strategy and minimise stress.

1. Evaluate Your Financial Situation First

Before you start buying and selling, take a close look at your finances. It’s best to know what you can afford without relying on the money from your home sale. If that’s not possible, there are ways to cover the financial gap.

Get pre-approved for a mortgage and discuss options like a home equity line of credit (HELOC) or a bridge loan with your lender.

  • Bridge Loan: A short-term loan designed to help finance when moving from one house to another. This type of loan usually uses your current home as collateral, but some lenders might accept other assets instead. Be sure to check with your lender if this option is feasible.
  • HELOC: Allows you to borrow against the equity of your current home to help pay for a new one. This is especially useful if you’ve built substantial equity in your existing property.

2. Work with a Knowledgeable Real Estate Agent

Choosing an experienced real estate agent like Randy and Heidi who knows the local market can benefit you in a buy-sell scenario. Having a pro beside you will be helpful with timelines, negotiating, strategy, and understanding what it takes to close on both properties in a competitive market.

Also, consider hiring the same agent if you’re buying and selling in the same market. This can make communication easier.

3. Determine Which Comes First: Buying or Selling?

  • Buying First: You can avoid the stress of finding one fast. However, this means you need to afford two mortgages temporarily or be ready for a quick sale of your current home.
  • Selling first can free up capital, giving you a clear idea of your budget for the new home. However, you may need to arrange temporary housing if you can’t find a new property in time.

Consult your agent to understand which option fits your needs based on market conditions.

4. Consider the Contingency Option

Depending on market conditions, including a home sale contingency (where you buy a home only if your current home sells) may still be an option. Discuss with your agent whether contingencies could work in your favour, especially if the local market allows for them.

  • Alternative Solutions: If contingencies are a challenge, explore other options, like a rent-back agreement. In a rent-back, the buyer of your current home allows you to stay temporarily after the sale closes, giving you extra time to shop for your new home with the money from your sale.

5. Start Preparing Your Home for Sale Early

Preparing your home for sale in advance will save time and reduce stress when the time to list arrives. Start by decluttering, cleaning, and handling any necessary repairs.

  • Tip: List your home as “Coming Soon” with professional photos to generate early interest and boost demand for a quicker sale.

6. Stay Organized with Clear Timelines and Checklists

Managing a dual transaction requires a clear timeline and being on top of deadlines. A checklist can help you track important dates for inspections, financing, and closing.

  • Create a Schedule: Work with your real estate agent to coordinate showings, moving dates, and key deadlines. Use digital tools or apps to track deadlines and keep documents easily accessible.

7. Plan for Moving Day Logistics

Moving day can be hectic, especially when buying and selling a home at the same time. Consider hiring professional movers and, if possible, stagger your moving dates to allow for some flexibility. If you can’t move directly between homes, look into temporary storage options.

Buying and selling a home at the same time can be easy with the right steps and professionals to help you. Get the right support to smoothly transition into your new home. Call us today!

8 Home Staging Mistakes to Avoid for a Faster Sale

Home staging can make or break a potential buyer’s first impression when selling a home. Thoughtful staging emphasises your home’s best features and will help buyers picture themselves living there. Here are the top home staging mistakes to avoid:

1. Overpersonalizing the Space

While showcasing your personality in your home is tempting, staging is about depersonalising the space. Prospective buyers need to picture themselves in the home, which is hard to do if personal items like family photos, kids’ artwork, or unique decor.

living room home stage
Featured listing: 1228 Hidden Creek Place, Santa Rosa, California

Aim for neutral tones, minimalist decor, and remove anything overly personal.

2. Cluttered Spaces

Cluttered rooms can make a home feel smaller and prevent buyers from seeing the full potential of your home.

Bedroom closet
Featured listing: 126 Spikerush Circle, American Canyon, California

Clear spaces of unnecessary items. Keep storage areas tidy, as buyers are likely to peek inside. Less is more when it comes to staging—highlight the space, not the stuff.

3. Neglecting Curb Appeal

First impressions matter, and the exterior of your home is the first thing buyers see. Neglecting your lawn, garden, or entrance can make buyers lose interest before they even step inside.

Curb appeal
Sold listing: Canfield Rd., Sebastopol, California

Spruce up the exterior by mowing the lawn, trimming hedges, and planting fresh flowers. Power wash the driveway and exterior walls, and consider adding a fresh coat of paint to the front door.

4. Not Enough Light

Dark, dimly lit can leave buyers with a negative impression of the home. A home overflowing with natural light creates a welcoming atmosphere.

Natural light
Featured listing: 126 Spikerush Circle, American Canyon, California

Open blinds and curtains to let in as much natural light as possible. Replace dim or outdated light fixtures with brighter, more modern options. Adding mirrors is another great trick to reflect light and make rooms feel larger and more open. These 5 light-boosting hacks will bring more natural light into your home.

5. Ignoring Minor Repairs

Small issues like scuffs, chipped paint, or leaky faucets may seem insignificant, but this can make buyers question how well the home has been maintained.

Fix small issues before staging. Touch up paint, patch holes, replace broken fixtures, and ensure everything is in good working order.

6. Overwhelming Scents

While a fresh-smelling home is important, overpowering scents from air fresheners or candles can be off-putting to buyers. Strong odours, even pleasant ones, may make people wonder if you’re trying to mask an unpleasant smell.

Stick to subtle, natural scents. Open windows to air out the home and consider using fresh flowers or mild air purifiers.

7. Poorly Arranged Furniture

Pushing all the furniture against the walls or overcrowding a room with too much furniture are common staging blunders that can disrupt the flow of the space.

Living room home staging
Sold listing: Hoen Ave., Santa Rosa, California

Arrange furniture to create an inviting layout with clear pathways. Focus on making the space feel open and balanced. Remove unnecessary or oversized pieces to allow the room to breathe.

8. Neglecting Key Rooms

It’s easy to focus on staging the living room or kitchen and overlook areas like bathrooms or bedrooms. Remember that buyers will evaluate the entire home and every room matters.

Bedroom home staging
Featured listing: 1228 Hidden Creek Place, Santa Rosa, California

Stage the bedrooms and bathrooms with fresh linens, neutral decor, and minimal clutter. Ensure every area of the home feels inviting and cared for.

Home staging is a powerful tool when selling your property, but the right approach is key to success. By avoiding these common mistakes, you can help your home stand out in the market and attract serious buyers.

Choosing the right realtor: questions to ask before you hire

A knowledgeable and experienced realtor can make a significant difference in your overall experience. To ensure you find the best fit for your real estate needs, here are some questions to ask potential realtors before hiring one.

1. What’s your experience in the local market?

Ask about their years in the business and how many transactions they’ve completed, especially in your target neighborhood.

Experience in your specific market can be a valuable asset.

2. What’s your business philosophy?

While there’s no right or wrong answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals match yours.

3. Are you a full-time realtor?

Some realtors work part-time or have other commitments.

While this doesn’t necessarily disqualify them, you would want to know how accessible and dedicated they will be during your real estate transaction.

4. What’s your marketing strategy for sellers?

Ask about how they plan to market your property, including online listings, open houses, and any unique tactics they may use to attract potential buyers.

5. How will you help me find the right property as a buyer?

For buyers, know how the realtor plans to help you find the right property.

Ask about their approach to searching for homes, scheduling viewings, and negotiating offers on your behalf. 

6. Can you explain the process step-by-step?

A good realtor should be able to explain the buying or selling process in detail.

They should walk you through each step, from the initial consultation to closing, and answer any questions.

7. How will you keep me informed about the progress of my transaction?

The best answer here is a question. A realtor who pays close attention to the way you prefer to communicate and responds accordingly will make for the smoothest transaction.

8. What’s your approach to negotiation?

Negotiation skills are essential in real estate. Inquire about the realtor’s approach to negotiation and their track record in securing favorable deals for their clients.

9. Do you have any designations or certifications?

Real estate professionals have to undergo additional specialized training to obtain these distinctions.

Designations and certifications help define the skills that an agent can apply to your particular real estate needs.

10. What sets you apart from other realtors?

This question can help you understand the realtor’s unique strengths and value proposition.

Look for qualities and services that align with your specific needs.

In conclusion,

Choosing the right realtor is a significant decision that can impact the success of your real estate transaction.

By asking these questions, you can make an informed choice and work with a realtor who is best equipped, like Randy and me, to help you achieve your goals.

Artisan Sotheby's Real Estate Office
6984 McKinley St, Sebastopol, CA 95472

Additionally, we not only have the knowledge that comes with being a professional realtor and are highly adept at negotiating the best terms on behalf of our clients, but we also have a keen sense of neighborhoods, homes, and the people we are working with.

Also, unique homes require skillful marketing, through our local expertise and Sotheby’s International Realty’s interconnected global network of offices that are dedicated to the extraordinary.

Finally, we strive to provide the highest level of service and build lasting relationships with our clients. Randy and I can be there by your side, protecting the interests that you trust. Call us!

How to Stage Your Home for a Successful Sale

One of the most effective ways to attract potential buyers and secure a successful sale is through home staging. So if you plan to sell your home, here are some tips and tricks of the trade that will help you make your home look and feel its best.

Why You Should Stage Your Home

Staging a home before selling is a strategy used to enhance its visual appeal. This can also help potential buyers imagine themselves living there.

 

National Association of Realtors®, Nearly half of the seller’s agents (48%) reported that staging a home decreased its time on the market, according to a new report by the National Association of Realtors®.

For both buyers’ and sellers’ agents, one in five (20%) said home staging increased the offer price by between 1% and 5% compared to similar homes on the market that weren’t staged.

Staging Tips and Tricks

Clear out the clutter:

Seeing your collectibles and storage will prevent buyers from imagining themselves in your space.

Hence, leave only the necessary furniture, keeping in mind that you want the space to look clean and spacious.

Freshen up the style:

Aim for a style that most buyers will like. Furnishings that seem homey and comforting.

Also, neutral colors work best: creams, light greys, and white.

Small furniture equals big space:

Downsize your furnishings to upsize the room. If the room looks tight to you, it likely will to potential buyers as well.

With this in mind, take some of the furniture out to create a more visual space.

Play with texture:

Wallpaper, pillows, rugs, blankets, baskets, and other tactile accessories can add texture to the look of any room.

Don’t forget the details:

Set the table. It’s easy to do and makes a significant impact. Buyers walk in and instantly feel welcome as if they’re coming over for dinner.

Moreover, light non-scented candles and place plush towels and fancy soap in the bathrooms.

Also, set out a breakfast tray on the bed or a pretty book on the coffee table with fresh flowers in the living room.

Smart accessories:

Clear the kitchen counter of appliances, spice racks, towels, and cooking utensils.

So leave only a few things, like a cookbook, a shiny teakettle, and a bowl of lemons.

Create vignettes:

Set up small “scenes” that help buyers visualize their potential life in this home.

This can be a quiet reading space with a comfy chair in the bedroom or a lounge chair under a tree in the backyard.

Doing so gives buyers some thoughtful ideas as they walk the property.

Don’t forget the outdoor areas:

Those spaces add as much interest for the buyer as the interior rooms. Add an outdoor rug, a small table and bistro chairs, and a few plants to your backyard. Remove all dead plants and trim all overgrowth.

Moreover, we have free seller reports that offer a unique insight into the selling experience. Click here for home-selling guides.

In conclusion,

Staging your home for a successful sale is a combination of art and strategy. Remember that the goal is to make your home as appealing and neutral as possible.

Additionally, having a professional real estate agent like Randy and Heidi by your side, guiding you, negotiating on your behalf, and protecting the interests that you trust, will make the process of selling a home easier.

Finally, as your real estate agent, we are happy to further extend our services by offering our list of local, trusted service providers to you. Call us about your particular needs, and we can give you a personalized recommendation of a qualified service provider in our area to assist you.

Outside Events Seldom Motivate the Decision to Buy a House

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When you decide that the time is approaching to put your home on the market, you probably take special interest in exploring the conditions that are likely to motivate families to buy your Sebastopol home. Most of the research on the subject indicates that it has at least as much to do with how people live their lives as it does with external forces–like changes in the economy or jobs market. When you spend as much time as I do chatting with people who are in the hunt to buy a house, you’d probably agree.

When Sonoma County empty nesters come to the conclusion that supporting more house than they need is wasting their resources, finding the right smaller place can become increasingly appealing. The idea that they could buy a house that’s right-sized for them—and come away with extra cash to support more travel and leisure activities—can soon become Priority 1. The current status of the real estate market doesn’t come close as a determining factor.

In the same way, there’s nothing like the arrival of a new baby to prompt the decision to buy a house with an extra bedroom or two. Likewise, when a youngster is approaching school age—but your district isn’t quite up to par—a move across town might suddenly beckon.

When the time comes to buy a house, people tend to take more seriously these kinds of long-term issues. Since there is a whole universe of possible changes in income or family situation that life can send our way, it does make sense to delay some decisions for a while.

If a move is to be from renting to owning, the dollars and cents wisdom is usually clear enough. Across the U.S., rents are rising quickly enough to practically guarantee the practicality of making such a move—even if only because of the ‘forced savings’ advantage that ownership brings. If a move is contemplated to a larger or a smaller home, or from one Sebastopol neighborhood to another, developments in the economy or particulars like changes in the mortgage rate may influence the decision, but not lead it. Family matters motivate most moves.

Such outside factors may not be decisive, but the good news is that this fall is one of those times when many of them are in place to make buying or selling a Sebastopol house more attractive than usual…and for sure, a good time to give us a call!

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Some Fresh Paint Goes A Long Way!

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New paint makes the entire home smell clean and neat, and can bring sellers top dollar. If your home has chipped paint, exposed wood, or surfaces that looks faded, it’s time for new paint. If your carpet is worn, dirty, outdated, or an unusual color or style, you might consider replacing it.

Many houses do not sell because of these problems. Even in Sonoma county don’t think that buyers have more money than you to freshen up a home. They typically don’t. They will simply look elsewhere for a home that needs less work.
Please contact us Heidi Faulkner and Randy Mack and let us know when you are ready to sell and we can help you prepare your home for today’s market.

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About Us

We are proud to have aligned ourselves with Artisan Sotheby’s International Realty an inspirational brand based on heritage, tradition and expertise. We are setting new standards by refining the art of residential brokerage with a practiced eye of identifying the unique value of a property. We offer a deep commitment to excellent service and have a passion for unparalleled quality. Unique homes require skillful marketing through our local expertise and Sotheby’s International Realty interconnected global network of offices that are dedicated to the extraordinary.

Testimonials

I wish to express my satisfaction and confidence in your ability to find an ideal home for anyone that I would refer to you. My own experience in purchasing and selling a home with you allowed me to witness the fact that you are truly an expert in your field, handling all aspects of residential real estate transactions. From the beginning, your market analysis to the final stages of negotiations, your calm manner and clear explanation kept me knowing I was in the best of hands.

Mr. Mitchler
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Contact Us

Randy Mack - Realtor CA BRE#01252462
randy@mack-faulkner.com
(707) 696-6272
6984 McKinley Street
Sebastopol, CA 95472


Heidi Faulkner - Realtor CA BRE#01227446
Heidi@mack-faulkner.com
(707) 480-4098
6984 McKinley Street
Sebastopol, CA 95472