As we near the end of 2024, the Emeryville real estate market is showing encouraging signs of recovery. Despite mortgage rates staying elevated for much of the year, home sales are seeing a meaningful uptick, prices are holding steady, and buyers are feeling more optimistic about what’s ahead. If you plan to buy, sell, or invest, here’s what you need to know as we wrap up November.
Mortgage Rates Are Up – But Relief May Be Coming
Mortgage rates have been a hot topic all year, and November was no different. After briefly dipping in October, rates climbed again in December, with the 30-year fixed mortgage averaging 6.53%. For buyers, this can feel like a punch to the budget—but there’s good news on the horizon.
The Federal Reserve is widely expected to cut rates by 25 basis points this month, and more reductions could follow in early 2025. This means mortgage rates are likely to trend lower in the new year. Already, a record 45% of consumers now believe rates will drop within the next 12 months, according to Fannie Mae. If you’re considering a move in 2025, now might be the time to start preparing.
What’s the takeaway? While rates are higher today, early 2025 could bring more affordable borrowing opportunities.
Emeryville Market: More Homes, Steady Prices, and Brighter Sales
The Bay Area housing market is finally starting to show its strength. Home sales across California posted their largest year-over-year gain since 2021, signaling that buyers are stepping off the sidelines.
Here in Emeryville and nearby areas, we’re seeing a mix of trends:
- Prices remain steady. Alameda County, where Emeryville is located, saw a modest 1.5% increase in home prices month-over-month, ending November at $1,285,000. While year-over-year price growth slowed to 4.5%, this reflects a market-finding balance after a hectic few years.
- Sales are improving. After months of slower activity, Alameda County’s year-over-year sales increased 7.9%—a strong signal that buyers are gaining confidence.
- Inventory is growing. More homes are hitting the market, giving buyers better options and reducing the fierce competition we saw in previous years.
Other parts of the Bay Area tell a similar story, with counties like Contra Costa and San Mateo seeing significant price gains year-over-year, while sales surged in areas like Santa Clara County, up 28.2% compared to last year.
Buyers Are Feeling More Optimistic About 2025
Consumer sentiment toward the housing market is improving, and it’s easy to see why. Lower rates are expected soon, more homes are coming to market, and prices are leveling out. In fact:
- A record-high 45% of consumers now believe mortgage rates will decline next year.
- 23% of consumers say it’s a good time to buy, up 3 percentage points from October.
- 64% of sellers still feel confident it’s a good time to sell.
For buyers, this is a perfect combination: easing mortgage rates, growing inventory, and less intense competition. For sellers, it’s a great opportunity to attract motivated buyers who are ready to make moves after sitting out much of 2024.
What Does This Mean for You?
If you’re thinking about buying or selling in Emeryville, the next few months could be key:
- For buyers: Start preparing now. Rates are expected to come down, and more inventory gives you options. The window to lock in a great home with less competition won’t stay open forever.
- For sellers: Price your home competitively, and highlight its value to stand out. With buyer optimism rising, well-prepared homes will see strong interest.
Final Thoughts: A Brighter Year Ahead for Emeryville
The Emeryville real estate market is ending 2024 on a promising note. While mortgage rates remain a challenge, the outlook for 2025 is bright, with lower rates, stronger sales, and steady price growth all expected.
Whether you’re planning to buy, sell, or simply explore your options, The Cal Agents is here to help you navigate the market with confidence. Let’s connect today and make 2025 the year you achieve your real estate goals!
