If January is any indication, 2025 is shaping up to be an incredible year in real estate. After two years of uncertainty, the market is buzzing with activity, and the wait appears to be over.
Here’s what we have been up to since January 1:
- A growing San Francisco family moved to Sellwood to be closer to loved ones.
- A family from Boise, Idaho, found their dream home in Laurelhurst after a decade of dreaming.
- A Portland couple finally went under contract on their ideal home after a two-year search.
- An investment-minded couple get the keys to their new property this week.
- A family from LA is beginning their Portland home search.
- Beloved friends returned to Portland from South Carolina.
Typically, spring is the most active time for real estate in Portland, but this level of January activity is remarkable.
Why Now?
Buyers are jumping back in despite interest rates holding steady, and sellers are taking action too. According to the RMLS, new listings in Portland shot up by 324% in the first week of January compared to the last week of December. And it’s not just Portland- at the Inman Connect conference in NYC, I heard similar trends from top agents across the country.
Here is what’s fueling the market:
1. Election Clarity
According to Lawrence Yun, Chief Economist for the National Association of REALTORS®, presidential elections tend to bring a slight boost in home sales, regardless of who wins. Why? It reduces uncertainty, allowing people to make decisions with more confidence.
2. Jobs and the Stock Market
Yun notes that improving job numbers and stock market gains are motivating more Americans to act.
3. Interest Rates
Though interest rates remain higher than the record-low 3% of years past, they’ve come down from the 8% highs of late 2023. Freddie Mac reports that rates have ranged between 6.08% and 7.44% over the past year, and Yun predicts they will stabilize at the lower end of that range for 2025 and 2026.
For those waiting for rates to drop further, it may be a long wait. According to Yun, the government’s large budget deficit will likely prevent rates from falling below 4% anytime soon.
That said, major shifts- such as easing housing regulations or increasing the labor force could create more favorable conditions for buyers and sellers alike.
Real Life Keeps Moving
Like for most of my dear clients who took the plunge in January, life’s milestones- new babies, loss of a loved one, marriages, divorces, career changes, and retirement- continue to drive real estate moves. And after a period of hesitation, many people are finally ready to take a deep breath and make their next move.
YogaBug: Ready to Serve You in 2025
Last year was a year of growth and transformation for YogaBug. We:
- Helped twice as many people with their real estate needs as the year before.
- Welcomed our new Operations Manager, Georgia, who revamped our systems to provide an even better client experience.
- Clarified our mission to help more families achieve their real estate dreams.
This year, our goal is to double our impact again while ensuring every client feels like they are our only client.
Thank you for trusting YogaBug with your real estate needs and for referring your family and friends. It is an honor to serve you. We are excited to make 2025 your best year yet!
Cheers to an amazing 2025! Happy New Year!
If we can help you or someone you love with buying or selling this year, we’d be thrilled to hear from you. Let’s make your real estate dreams a reality!
