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https://www.instagram.com/tessmarquez/ If you’ve been watching the West Covina real estate market  or browsing homes for sale in the San Gabriel Valley , you’ve probably seen it happen: two properties in the same neighborhood, similar in size and price — one sells in under a week, and the other sits for months. It’s not just luck, and it’s not always about price. As a local REALTOR®  who’s helped buyers and sellers navigate this market, I can tell you: a few key factors can make all the difference in how quickly your home sells. 1. First Impressions Matter — Especially Online In today’s real estate market , buyers often see your home online before they step through the door. Poor-quality listing photos can cost you showings before you even get started. Professional real estate photography is your first marketing tool. Bright, well-composed images and thoughtful staging (or even virtual staging ) help buyers imagine themselves living there — a critical step in making your listing stand out among homes for sale in West Covina  or anywhere in the San Gabriel Valley. 2. Strategic Pricing Drives Demand Overpricing is one of the most common reasons homes stay on the market too long. When priced correctly, your home can attract multiple offers and potentially sell over asking. In competitive areas like West Covina  and San Gabriel Valley , pricing isn’t guesswork — it’s a strategy based on recent sales, market trends, and buyer behavior. 3. Tell the Home’s Story Numbers and stats matter, but buyers connect emotionally. Sharing the unique aspects of your home — a peaceful backyard, a sunny breakfast nook, or a history of family gatherings — can set your listing apart from others in the local housing market . 4. Timing and Market Cycles While spring and early summer often bring more buyers, serious house hunters shop year-round in Southern California. Understanding your local real estate cycle  can help you time your listing for maximum visibility and minimal competition. 5. The Realtor You Choose Matters An experienced West Covina real estate agent  knows how to position your home for a fast sale. From professional marketing to strong negotiation, having the right agent can turn a “90 days on the market” listing into a “sold in two weeks” success story. Selling Fast Is About Strategy, Not Luck If your home has been sitting without offers, the issue may not be the property, it could be the presentation, pricing, or marketing strategy. If you’re ready to sell, I’d love to help make your home one of the “sold in days” stories. 📩 Contact me at   TessMarquez.com  | (626) 712-5156  or call/text anytime! By Tess Marquez, Realtor & Probate Specialist |   TessMarquez.com

https://www.instagram.com/tessmarquez/ Present Local Housing Market Condition Houses are selling quickly in West Covina, but not overnight. Houses in desirable neighborhoods such as South Hills and Eastland typically receive their contracts within 10-15 days. This leaves actual buyers sufficient time to view houses and make sound decisions. House prices are becoming reasonable in the region. Following the high rates in March, sellers are requesting reasonable prices. Houses that are too costly along the high school and Cameron Avenue locations are either reducing their prices or taking longer to sell. It is common to have many offers, but they can be handled. Most good properties get 3-5 strong offers, which allows prepared buyers to buy their dream home successfully. Recent Success Stories of Local Home Sales Get pre-approved from a reputable lender. Pre-qualifying is not enough in the current competitive marketplace. Full underwriting approval provides you with a huge advantage when making offers. Be crystal clear on your home buying budget. Understand your comfort level for monthly payments, your top home price, your down payment, and closing time horizon. Clarity wins deals in the San Gabriel Valley market. Act fast on the right property. When you become enamored with your dream house, be ready to make an offer in 24-48 hours. Don't engage in panic buying,  Summer 2025 Local Real Estate Forecast  Early indicators indicate our housing market slowing a bit this summer. Sellers are taking listings off the market to wait for fall market conditions, and fewer families want to move during school times. This can translate into more inventory and less competition for savvy home buyers. Local Home Buyers' Expert Advice Active buyers: Don't be discouraged by initial rejection. Focus on those properties that have been on the market for at least one week - these sellers will be more price- and term-flexible. Potential buyers:  Get mortgage pre-approval beforehand, and then shop for homes available within your budget to gauge current market expectations. Overwhelmed buyers:  Step back for a brief moment. Sometimes stepping back provides more clarity on true potential. Why Our Community for Your New Home This neighborhood continues to be excellent value in the San Gabriel Valley real estate market . Those who choose our communities enjoy the spacious homes, good schools, and true community character - at dramatically lower prices than in coastal Los Angeles communities. The most successful local home buyers prepare ahead of time and not spontaneously. They prepare themselves financially, they are practical in their expectations, and they deal with experienced local agents who understand the nuances of the region. Ready to Purchase Your Dream Home? I assist pre-qualified buyers in finding good deals on homes each week in our existing market. Would you like to learn about South Hills homes, Eastland neighborhoods, or homes near the best schools? Let's discuss your home purchasing needs. 📩 Contact me at   TessMarquez.com  | (626) 712-5156  or call/text anytime! By Tess Marquez, Realtor & Probate Specialist |   TessMarquez.com

When your child gets accepted into college, there are a million things to think about—dorm life, tuition, meal plans, and... buying them a house? Believe it or not, more and more families are exploring the idea of purchasing property for their college-aged children to live in during their university years. As a real estate professional here in Southern California (and a mom myself), I often get asked: “Is buying a home for my college kid a good investment—or is it just an expensive experiment?”  The answer? It depends. But with the right approach, it can absolutely be a smart, strategic move. Let’s break it down. 💡 Why Parents Are Doing This Southern California rental prices can be sky-high, especially in areas near major universities like UC Irvine, Cal State Fullerton, or Chapman. Instead of pouring thousands into rent for four years, some parents are choosing to invest in a condo, townhome, or small single-family home. This strategy can: ●     Save money over time ●     Build equity ●     Offer more stability and comfort for your child ●     Open up opportunities for rental income (more on that below!) 🏠 What to Look for in a Property When shopping for a property for your college student, location is key—but it’s more than just being close to campus. You want a home in a safe, walkable neighborhood that holds long-term value. Areas with low crime rates, nearby grocery stores, coffee shops, and public transit will always attract renters, which becomes important once your child graduates. Other features to consider: ●     Low-maintenance properties  (think condos or townhomes) ●     HOAs that allow rentals ●     Two to three bedrooms  for roommate potential (hello, rental income!) ●     Proximity to hospitals and major employers (valuable for resale or long-term investment) 📊 Let’s Talk Numbers If you’re spending $1,500–$2,500/month in rent over four years, that’s roughly $72,000–$120,000 down the drain. Buying a $400,000 property with a 10–20% down payment and manageable mortgage could cost a similar amount—but you’re building equity. You might even come out ahead if your student shares with a roommate and you collect rent. Some families even continue renting the property after graduation and turn it into a long-term investment. ⚠️ What Could Go Wrong? Of course, it’s not all upside. Here are some real risks to consider: ●     Market fluctuations (home values aren’t guaranteed to rise) ●     Property management (especially if you live out of town) ●     Maintenance costs and repairs ●     HOA restrictions on rentals ●     The possibility your child might transfer or decide to live elsewhere Also, if you're considering co-signing a mortgage or buying under your child’s name, talk to a financial advisor first. And be cautious with gifting property—it may have long-term tax implications. 📝 My Take as a Realtor & Probate Specialist I've helped several families navigate this exact scenario, and the biggest difference between a money pit and a smart move is strategy.  The best approach is to treat this like a business decision—don’t just buy with your heart. If you're considering buying near a college or university, I can help you identify high-growth neighborhoods and avoid properties with hidden red flags. I also offer guidance on long-term planning—especially important if you want the property to stay in your family’s estate. If the unexpected happens and you end up managing the property later in life or passing it down, understanding probate and estate planning is crucial. (That’s where my experience as a probate specialist comes in!) 🎓 Final Thoughts Buying a property for your college student can be an incredibly smart move—but only if you do it with eyes wide open. With the right advice and a thoughtful plan, it can set your child up for stability while building generational wealth. Have questions? Thinking about exploring properties near a SoCal university? I’d love to help you weigh your options and run the numbers. Let’s turn your child’s college years into an investment opportunity. 📩 Contact me at   TessMarquez.com  | (626) 712-5156 or call/text anytime! By Tess Marquez, Realtor & Probate Specialist |   TessMarquez.com

Hi there, I'm Tess Marquez. If you're reading this, you may be dealing with the loss of a loved one or supporting someone who is. I want you to know you're not alone. Since 1997, I’ve helped families in the San Gabriel Valley, Inland Empire, and San Bernardino County navigate the emotional and legal complexities of probate real estate. This field is very different from regular real estate. When someone passes away without a living trust, their property usually goes through probate court—a legal process that can be confusing without the right help. A probate real estate specialist isn’t just a realtor. We understand court procedures, legal documents, and timelines unique to probate sales. I work closely with probate attorneys to align the real estate process with court expectations, ensuring everything moves as smoothly as possible. Marketing and selling a probate property is a specialized process. Disclosure of the probate status can affect the type of buyers interested, and court confirmation may be required, meaning a hearing where other buyers can submit higher bids. I recently helped a family in Ontario where this process resulted in a $25,000 overbid—an outcome we prepared for from the beginning. Beyond paperwork, probate sales carry emotional weight. Many times, I help families sort through decades of personal belongings, make tough decisions, and manage expectations. These aren't just transactions—they’re transitions. You don’t need to wait for Letters of Administration or Testamentary to contact a probate realtor. There’s prep work that can begin early, such as evaluating the property’s condition, planning repairs, or understanding the market. I once supported a family in Rancho Cucamonga days after their father's passing, helping them prepare so when the time came, they were ready to move forward. When searching for a probate real estate expert, ask about direct probate experience, relationships with attorneys, and knowledge of local procedures. The Inland Empire and San Gabriel Valley have unique court systems, and local knowledge makes a big difference. Ultimately, the right probate real estate specialist offers more than technical skills—they offer support through one of life’s more difficult transitions. I've been honored to walk with hundreds of families through these moments, combining expertise with compassion. If you're facing a probate situation, I’m here to guide you through every step—no pressure, no obligation. Feel free to reach out for a free consultation or market analysis.

If you put your moving plans on hold last year, you weren’t alone—about 70% of buyers did the same. With low inventory, high prices, and rising mortgage rates, it just wasn’t the right time for many. But things are changing—and fast. The Market’s Finding Its Balance  Inventory is up as more homeowners list and builders finish new homes, giving buyers more options. At the same time, supply is still low enough that sellers can move quickly with the right strategy. In fact, inventory has jumped over 28% from this time last year, according to Realtor.com —but it’s still under pre-pandemic levels. That means less chaos for buyers and steady demand for sellers. Why Timing Matters  Experts say inventory will likely keep rising throughout the year. That means your home could stand out more now than later when there’s more competition. Waiting might cost you. Bottom Line  If you’ve been holding off, this could be your sign. Whether you're moving up, downsizing, or relocating, today’s market offers a rare balance. Let’s talk about what this could mean for your next move.

Retirement isn’t just a milestone. It's the beginning of something really special. After years of hard work, it’s finally time to slow down, explore new passions, and live life on your own terms. But with this exciting chapter comes some big choices. And one of the biggest is this: does your current home still make sense for the lifestyle (and budget) you want in this next phase of life? That’s an especially important question right now. Just in the past five years, the cost of living has jumped by 23% according to the Bureau of Labor Statistics (BLS). That’s based on the Consumer Price Index (CPI), which is how changes are tracked in the average price consumers pay for goods and services ( see graph below ): When you’re thinking about how to make your retirement savings last, those rising expenses matter. And if you’ve started to wonder whether your money will stretch as far as you need it to go, don’t worry. You may have more control than you think. One way many retirees are protecting their savings is by relocating. Because your dollars do go further in some places. Moving to an area with a lower cost of living can help you save on regular expenses like your housing, utilities, and taxes – especially if you downsize at the same time. And that can free up room in your budget for the things that make retirement some of the best years of your life: travel, hobbies, spoiling your grandkids, or any of the other things you’ve been dreaming about doing in this next phase. That’s not to say you have to move. It just means you’ll want to think about where you plan to live and make sure you’ve got enough savings to cover actually living there. It's all about planning. As Go Banking Rates explains: “How much you should have saved for retirement depends on a few key factors, including your location. Where you choose to spend your golden years is critical .” And you don’t always have to go far. Sometimes it’s out of state, but other times moving to the suburbs instead of living near the city can make a big difference. And that’s worth thinking about as you plan for your next chapter. Whether you’re considering downsizing, moving closer to your grandkids, or heading to an area where you can stretch your savings, a real estate agent can help. They’ll work with you to explore the options that make sense for your goals – and can help make selling your current house easier. They can also connect you with trusted agents in other parts of the country if you're considering a big move. Bottom Line You’ve worked hard to build a future you can enjoy. If your current home or location no longer supports that, it may be time to explore what’s next. What does your ideal retirement look like? And could a move help make it even better? Let’s talk about how to make that vision a reality.

Spring is here, and so is the busiest season in real estate. More buyers are out looking for homes, which means more competition for you. If you want to put yourself in the best position to buy, there’s one step you can’t afford to skip, and that’s getting pre-approved for a mortgage. Some buyers think they can wait until they’ve found a home they love before talking to a lender. But in a season where homes can sell fast, that’s a risky move. Getting pre-approved before you start your search is a much better bet. Here’s what you need to know about this early step in the buying process. What Is Pre-Approval? Pre-approval gives you a sense of how much a lender is willing to let you borrow for your home loan. To determine that number, a lender starts by looking at your financial history. Here are some of the things that can have an impact, according to Yahoo Finance: Your debt-to-income (DTI) ratio: This is how much money you owe divided by how much money you make. Usually, you can borrow more if you have a lower DTI. Your income and employment status: They’re looking to verify you have a steady income coming in – that way they feel confident in your ability to repay the loan. Your credit score: If your score is higher, you may qualify to borrow more. Your payment history: Do you consistently pay your bills on time? Lenders want to know you’re not a risky borrower. After their review, you’ll get a pre-approval letter showing what you can borrow. Having this peace of mind is a big deal – it helps you feel a lot more confident in your ability to get a home loan. And the fringe benefit is it can also speed up the road to closing day because the lender will already have a lot of your information. It Helps You Figure Out Your Budget Spring is a competitive season, and emotions can run high if you find yourself up against other buyers. Having a firm budget in mind is so important. You don’t want to get too attached and end up maxing out what you can borrow. As Freddie Mac explains: “​Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.” So, use this time to really buckle down on your numbers. And be sure to factor in other homeownership costs – like property taxes, insurance, and maybe even homeowner’s association fees – so you know what you can comfortably afford. Then, partner with your agent to tailor your search to homes that match your budget. That way, you don’t fall in love with a house that’s out of your financial comfort zone. It Helps Your Offer Stand Out During the Busy Season Spring buyers aren’t just competing for homes. They’re competing for the seller’s attention, too. And a pre-approval letter can help you stand out by showing sellers you’ve already gone through a financial check. Zillow explains it like this: “Having a pre-approval letter handy while you’re shopping for a home can also help you act quickly once you’ve found a home you love. The letter shows potential sellers that you’re a serious buyer who has the financial means to close on the home. In a competitive market, an offer with a pre-approval letter attached will stand out among other offers that don’t include one — increasing the chances of your offer being accepted." That means when sellers are choosing among multiple offers, yours could rise to the top simply because you’ve already taken this step. And here’s one final tip for you. After you receive your letter, avoid switching jobs, applying for new credit cards or other loans, co-signing for loans, or moving money in or out of your savings. That’s because any changes to your finances can affect your pre-approval status. Bottom Line If you’re thinking about buying a home this spring, getting pre-approved should be your first move. It’ll help you understand your budget, show sellers you’re serious, and keep you from falling in love with a house that’s out of reach. Talk to a lender to get started. What’s your plan to stand out in this competitive market? Let’s chat about how to make sure you’re fully ready to buy.

At one point or another, you’ve probably heard someone say, “Yesterday was the best time to buy a home, but the next best time is today.” That’s because nationally, home values continue to rise. And with mortgage rates still stubbornly high and home prices going up, you may be holding out for prices to fall or trying to time the market for that perfect rate. But here’s the truth: waiting for the right moment could cost you in the long run. Home Prices Are Still Rising – Just at a More Normal Pace The idea that prices will drop dramatically is wishful thinking in most markets. According to the Home Price Expectations Survey from Fannie Mae , industry analysts are saying prices are projected to keep rising through at least 2029. While we’re no longer seeing the steep spikes of previous years, experts project a steady and sustainable increase of around 3-4% per year, nationally. And the good news is, this is a much more normal pace – a welcome sign for hopeful buyers ( see graph below ): What This Means for You While it’s tempting to wait it out for prices or mortgage rates to decline before you buy, here’s what you’ll need to consider if you do. Tomorrow’s home prices will be higher than today’s. The longer you wait, the more that purchase price will go up. Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, rising home prices could still make waiting more expensive overall. Buying now means building equity sooner. Home values are rising, which means your investment starts growing as soon as you buy. Let’s put real numbers into this equation. If you purchase a $400,000 home today , based on these price forecasts, it’s expected to go up in value by more than $83,000 over the next five years . That’s some serious money back in your pocket instead of being left on the sidelines ( see graph below ): Why Aren’t Prices Dropping? It’s All About Supply and Demand Even though there are more homes for sale right now than there were at this time last year, or even last month, there still aren’t enough of them on the market for all the buyers who want to purchase them. And that puts continued upward pressure on prices. As Redfin puts it: "Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand." While every market is different, most areas will continue to see moderate price growth. Some may level off a bit, but a major national drop? Not likely. Bottom Line Time in the Market Beats Timing the Market If you’re debating whether to buy now or wait, remember this: real estate rewards those who get in the market, not those who try to time it perfectly. Yes, today’s housing market has its challenges, but there are ways to make it work —exploring different neighborhoods, considering smaller condos or townhomes, asking your lender about alternative financing, or tapping into down payment assistance programs. The key is making a move when it makes sense for you rather than waiting for a perfect scenario that may never arrive. Want to take a look at what’s happening with prices in our local market? Whether you're ready to buy now or just exploring your options, having a plan in place can set you up for success.

Understanding Home Price Forecasts: Why Now is the Right Time to Buy If you're thinking Why Now is the Right Time to Buy , you may want to reconsider your timing. The attached image highlights the Estimated Home Price Performance  from 2025 through 2029, as forecast in Q4 2024 by HPES . Here's what you need to know: Key Forecast Insights: 2025:  Prices are projected to rise by 3.78%. 2026:  A 3.63% increase in home prices is expected. 2027:  The market sees a slight uptick, with a 3.71% increase. 2028:  A sharper rise of 4.03% is forecast. 2029:  An even higher growth rate of 4.12% is anticipated. These numbers make it clear: home prices are expected to rise year-over-year . While these increases may seem moderate, the cumulative effect over several years could significantly impact what you'll pay for a home if you wait. What This Means for You If you wait, the price of a home will be higher later on.  Simply put, the longer you delay purchasing, the more you’ll pay for the same property in the future. If you buy now, you’ll build equity as prices continue to rise.  By purchasing now, you benefit from locking in your price at today’s rates, allowing you to build wealth through increasing home values over the next few years. Why This Matters The forecasted steady rise in home prices reflects continued demand, tight housing supply, and a strong economy. With prices projected to climb, waiting could mean missing out on the opportunity to secure a more affordable home now and build equity for the future. Take Action Now! Don't let rising home prices keep you from achieving your homeownership dreams. Connect with us today  to explore your options and see how you can make a smart investment in your future by buying now, while prices are still manageable. Ready to get started? Contact us  to schedule a consultation, and let us help you find the perfect home!

Are You Tempted to Rent for Another Year? Here’s Why You Should Consider Buying Instead When faced with the choice of renting for another year or taking the leap into homeownership, many first-time homebuyers struggle with the decision. However, a closer look at the numbers could help you make the right choice. According to U.S. Census data, rents have been consistently rising for decades. The graph above shows the steep increase in median asking rents since 1988. This trend shows no signs of slowing down, which means renewing your lease could result in you paying even more in rent than you do today. At the same time, home prices also tend to rise over time. While this may seem like a reason to hold off on buying, it actually highlights a key benefit of homeownership: equity . As your home’s value increases, so does your net worth. Unlike renting, where your payments don’t build any lasting value, owning a home means you’re investing in your future. If you can afford to buy now, it may make more financial sense in the long run. You lock in your monthly payment with a mortgage, build equity, and benefit from future home price appreciation. Curious about what a starter home costs in our market? Contact me today to explore your options! Whether you're ready to buy now or just want more information, I'm here to guide you. Let’s see how you can start building your wealth through homeownership.

A significant shift in California probate law is on the horizon, and it could make the process of transferring estate properties smoother for many homeowners. If you’re dealing with a loved one’s estate, this new law could be a game-changer. Starting on April 1, 2025, a new law will allow for simplified transfers of primary residences valued up to $750,000—and you won’t need to go through probate or even have a formal estate plan in place. What’s Changing in Probate Law? Until now, if someone passed away without a trust or estate plan, their heirs would likely have to go through the lengthy and often complicated probate process. But, starting in April 2025, California’s new law will expand the small estate affidavit procedure to include primary residences valued up to $750,000, along with other personal property valued up to $184,500. This means that heirs can now access these properties without a formal probate process, saving both time and money. How Will the New Law Work? Under the current system, the small estate affidavit allows heirs to access personal property valued below $184,500 without probate. But, starting in 2025, that rule expands to include primary residences worth up to $750,000. This change offers a significant advantage, especially for families dealing with real estate that is not part of a formal estate plan. Instead of probate, the process will rely on a petition to determine succession to property, which is a quicker, streamlined court procedure. The petition requires only one court hearing, making the process much less time-consuming than traditional probate, which often involves multiple hearings. However, while this new process offers a simpler way to transfer ownership of properties, it’s not a fit for everyone. For instance, if the home is valued above $750,000 or if there are multiple properties, the full probate process may still be required. Who Benefits from This Change? This change could be beneficial for many families, especially those with a primary residence valued under $750,000. However, it’s important to note that real estate prices vary widely across California. In areas where home prices exceed the $750,000 threshold, such as parts of Walnut Creek where the average home price is well over $1 million, this law may not offer much assistance. Still, for many others with homes below the new limit, this law can simplify the estate transfer process significantly, making it easier for heirs to move on from a loved one’s estate. What Does This Mean for You? If you’re involved in managing an estate, or if you’re planning ahead, it’s important to understand how this change could impact you. Whether you’re a homeowner with an estate plan, or a potential heir dealing with the passing of a family member, these changes could make property transitions faster and less complicated. How I Can Help As a trusted real estate agent and probate specialist, I'm staying ahead of these changes to help you navigate the probate process with ease. If you're dealing with an inherited property or need guidance on how this new law could impact your situation, I’m here to assist you every step of the way. Whether you need to sell a probate property or simply have questions about how to manage the transfer, I can offer expert advice and tailored solutions. Don’t hesitate to reach out—I look forward to helping you take full advantage of these exciting changes in 2025!

While the future of the housing market can be unpredictable, experts are cautiously optimistic about the outlook for California real estate in 2025. Factors like insurance challenges, wildfire risks, new mansion taxes, inventory fluctuations, and interest rate changes all contribute to the complexity of forecasting. However, the overall trend suggests that 2025 could offer unique opportunities for both buyers and sellers. Key to navigating these opportunities is preparation: understanding your financial situation, planning ahead, and partnering with experienced professionals to help guide you through any market changes. Here’s a closer look at what experts are predicting for California’s housing market in 2025: 1. Home Sales Set to Increase by 10.5% - The California Association of Realtors (C.A.R.) anticipates around 304,400 home sales in 2025, up from 275,400 in 2024. This growth is expected as interest rates soften and more homes become available. Tip:  If you’re looking to buy, more inventory means more choices in 2025, but competition will remain fierce in desirable locations. 2. Modest Increase in Median Home Prices - Experts forecast that median home prices will rise by 4.6% in 2025, a smaller increase compared to previous years but still noteworthy given inventory limitations. Sellers can expect a solid return on investment. Tip:  If you’re considering selling, listing early in 2025 could help you get ahead of rising competition. 3. Interest Rates on the Decline- Interest rates for 30-year fixed mortgages are predicted to drop to 5.9% in 2025, compared to 6.6% in 2024. This decline could bring more buyers back into the market and help reignite activity after a slower period. Quote:  Marco Santarelli, founder of Norada Real Estate Investments, notes, “Lower interest rates and more homes for sale could provide buyers with more options.” 4. Insurability and Wildfire Risks Remain Key Concerns- Obtaining affordable insurance in high-risk wildfire areas will remain difficult and costly, which may affect both home values and demand. To alleviate the burden, there’s hope that insurance premiums can be considered tax-deductible, particularly in light of recent tax changes that impacted homeowners. Tip:  Buyers should evaluate a home’s insurability and potential environmental risks before purchasing, and sellers in these areas may need to adjust prices to attract buyers. 5. The Luxury Market Faces Mansion Tax Challenges- New mansion taxes, particularly in markets like Los Angeles and the Bay Area, are having mixed effects. While the tax aimed to generate substantial revenue, it has fallen short of expectations. Luxury buyers are now navigating a more complicated landscape. Tip:  Luxury market buyers and sellers should consult tax professionals to fully understand how these changes might impact their transactions. 6. New Homes to Fill Inventory Gaps- As builders step in to help address inventory shortages, newly built homes now account for around 30% of available properties. With attractive incentives such as mortgage rate buy-downs, builders are working to make homes more accessible. Quote:  Doug Bauer, CEO of Tri Pointe Homes, states, “We’re planning for a strong spring selling season.” 7. Affordability Challenges Persist- Despite an improving market, affordability remains a significant obstacle. Only 16% of California households can afford a median-priced home, and rising property taxes, insurance, and climate-related costs are only adding to the challenge. Stat:  Bankrate reports that annual homeownership costs for a typical single-family home have increased by 26% from 2020 to 2024. 8. Regional Markets Will Differ- While Southern and Central California may see growth, the Bay Area could experience slower demand due to affordability issues and weaker economic conditions. Tip:  Focus on regions with strong job growth and infrastructure development for long-term investment potential. 9. Rent Prices to Rise, But Slowly- Median rent is expected to rise by just 1.8%, reaching around $2,050. However, multifamily apartment rents may see flat or even declining rates in some areas due to oversupply. Tip:  Renters considering homeownership may find 2025 to be an ideal time to transition, thanks to more affordable mortgage rates. 10. Total Cost of Ownership Becomes Even More Critical- Beyond the home’s price tag, buyers should be mindful of the long-term costs associated with owning a property, including taxes, insurance, maintenance, and HOA fees. Tip:  Make sure to review all the costs of ownership before making a decision to ensure that your investment remains affordable in the long run.