Silicon Valley Real Estate Market January 2025 Compass is #1 brokerage in the U.S. Over the past five years, we’ve become the #1 brokerage in the U.S. by sales volume, surpassed $1 trillion in sales, and built the industry’s most powerful referral network. We are very proud of all the hard working agents in the company. Interest Rates The Federal Reserve cut interest rates by a quarter point on Dec. 18, bringing the target range to 4.25% to 4.5%. The central bank revised its outlook for rate cuts in 2025, however, indicating that there will be two reductions. That’s down from the four forecast in September.  CNBC, 12/18/24  The suggestion of only 2 cuts in 2025 was not what investors and bond markets wanted to hear. Stock markets plunged immediately, though they started to rebound shortly afterwards, and mortgage interest rates spiked up.  These changes constitute very short-term data.  Interest rates: Counter-intuitively, rates have climbed since the Fed first started reducing their benchmark rate – because the reductions and guidance on future cuts were never as substantial as investors desired. Home Buyers and Sellers Profile Some Highlights from the 2024 Profile of Home Buyers and Sellers: > The typical first-time buyer was 38 years old.  > The typical repeat buyer was 61 (both historic highs) > The median distance between the home purchased and the home moved from was 20 miles > 59% of buyers cited quality of neighborhood, 45% proximity to friends and family, and 36% housing affordability as the most important factors in choosing a neighborhood. > The typical home seller was 63 years old (highest age ever), and had lived in their home for 10 years before selling. Most common reason for selling was to be closer to friends & family. 36% bought a larger home, 32% a smaller home, and 30% a home of similar size. [Data from National Association of Realtors] Resources Available If you have any questions or require real estate resources, I am here to assist. I am part of a National Professional Network that includes very seasoned Realtors, Attorneys, CPAs, Financial Advisors, and more. Below are charts for U.S. home inventory new listings since 2017, and U.S. Home Insurance Premium change since 2016, Also stats for Santa Clara and San Mateo counties for last 25 months.  Stats for other areas are available upon request.