How the Market is Evolving This Fall
The housing market is showing some shifts as we move through the second half of 2025. Buyer confidence dipped in August, primarily because of concerns about prices and jobs. While a few more people felt it was a good time to buy, fewer sellers thought it was the right time to list.
On the job front, growth has slowed. Only 22,000 new jobs were added in August—much lower than expected—and unemployment ticked up slightly to 4.3%. With the job market softening, the Federal Reserve may start cutting interest rates soon, which could bring welcome relief for buyers.
Here in California, the market is less competitive than we’ve seen in years. Multiple offers and bidding wars are down, and fewer homes are selling above the asking price. That’s good news for buyers who have been waiting for a little breathing room.
First-time buyers, however, still face challenges. Higher mortgage payments—averaging about $3,800—make it tough to break in, though rates are expected to ease in the coming year, which should help.
Construction has slowed too, with fewer new homes being built, but there are early signs of stabilization.
What this means for you:
If you’re thinking of buying, the slowdown could create opportunities—especially with less competition. For sellers, pricing wisely and presenting your home well are more important than ever.
As always, I’m here to help you navigate the market with the best strategy for your goals.
Source: California Association of REALTORS®