Market Update - August 2025
Market Action Index - August 2025
Watching…and waiting… who’s hungry?
When I think about today’s housing market, I’m reminded of my yellow lab, Teddy. Every afternoon around 4 p.m., he locks in on me—watching closely to see if I’m heading toward his food bowl. In a way, it’s not too different from how the market is watching Jerome Powell and the Fed. After last month’s weaker-than-expected job numbers, a rate cut at the next meeting is widely expected, with some even predicting multiple cuts before the end of 2025.
The truth is, markets are full of surprises, and no one knows exactly what’s coming next. My best advice remains the same: make real estate decisions based on your life, not the headlines. Sellers need to stay patient and realistic as inventory continues to build, while buyers may find real opportunity in acting before rates drop further—since lower borrowing costs could quickly push prices higher. At the end of the day, the math still has to make sense for your situation. In many cases the math doesn’t math and I get that!
If you’re thinking about buying, selling, or just want to talk strategy, I’d love to connect. Let’s chat!
Market Segments - August 2025
“As of Q1 2025, median monthly mortgage payments in San Diego county are $5,770...as a comparison that number was $2,400 in 2020...”
Market Profile - August 2025
HOT TOPICS
California Housing Market Cools in July - Home sales in California dropped again in July, marking the fourth straight annual decline as high mortgage rates and economic uncertainty kept buyers away. Prices slipped for the third month in a row, while inventory rose to its highest level in nearly six years, signaling weakening demand.
Housing Starts Jump, Permits Fall - U.S. housing starts rose in July, but the decline in building permits shows that construction—especially single-family homes—remains under pressure. Multifamily development is holding stronger, supported by rental demand, while builder confidence has sunk near decade-lows due to affordability concerns.
Home-Purchase Cancellations Hit Record High - About 15% of pending U.S. home sales were canceled in July, the highest level on record for that month. Rising mortgage rates and affordability issues fueled the trend, with cancellations especially high in fast-growing markets and several California metros like Los Angeles, Riverside, and San Diego.
Fix-and-Flip Investors Retreat - Flipping activity slowed in Q2 2025 as rising costs, labor shortages, and cooling home prices weighed on investor confidence. Many scaled back on deals despite stable margins, with markets like Florida, Northern California, and the Southwest hit hardest.
Powell Signals September Rate Cut - Fed Chair Jerome Powell indicated a likely September rate cut, noting inflation is still a concern but labor market risks are now rising. His remarks sparked a sharp drop in mortgage rates, bringing them to their lowest levels since October 2024.
Reach out anytime! Call, text, or message me 😊
Brendan
P.S. If you know someone who’s thinking about making a move or just has real estate questions, I’d be honored to help. Referrals are the heart of my business - and truly one of the kindest ways to show your support. Thank you for thinking of me!