Fannie Mae has adjusted its 2024 housing market forecast, now predicting total home sales will reach 4.7 million nationwide, slightly down from the previous 4.8 million projection. This marks a 0.3% decline from 2023 and could represent the slowest pace of existing home sales since 1995. For those considering buying or selling a home in Brentwood, Los Angeles, these trends will play a crucial role in shaping the market.
Key Market Predictions for 2024 and 2025
- 2024 Home Sales: While 2024 is expected to be slow nationwide, Brentwood and other prime Los Angeles neighborhoods may remain in demand due to their desirable location, luxury homes, and high quality of life.
- 2025 Rebound: Fannie Mae forecasts a significant uptick in home sales in 2025, with a projected 9.8% increase, reaching 5.1 million units. Most of these sales are expected to happen in the second half of the year, as mortgage rates are predicted to fall to 5.7%. This potential rate drop could make Brentwood real estate even more attractive for buyers seeking to invest in one of LA’s most sought-after communities.
- Regional Hotspots: The Sun Belt and Mountain West states are expected to see the largest increases in homes for sale, but Brentwood’s luxury market is likely to maintain its appeal due to its prestigious location and proximity to Los Angeles amenities.
What This Means for Brentwood Homeowners and Buyers
With a slower pace expected for home sales in 2024, sellers in Brentwood may face increased competition from other luxury properties, both new and existing. However, with Brentwood’s prime real estate market, sellers still have an opportunity to attract buyers who are looking for high-end homes in a well-established Los Angeles neighborhood.
For buyers, the forecasted drop in mortgage rates in 2025 will enhance purchasing power. If you’re considering buying a home in Brentwood, it may be worth watching the market closely for opportunities in the coming months, particularly if rates begin to drop.
Mortgage Market Projections
- Mortgage Originations in 2024: Fannie Mae projects mortgage originations to hit $1.68 trillion in 2024, down slightly from earlier estimates. However, this number is expected to rise to $2.16 trillion in 2025 due to an increase in refinance activity, which could benefit Brentwood homeowners looking to refinance their current mortgage.
- Economic Growth and Unemployment: The economy is expected to grow by 1.8% in 2025, with the unemployment rate gradually increasing to 4.6% by the end of that year. For buyers and sellers in Brentwood, the overall economic stability of the area will likely continue to support strong demand for homes.
Our Take on Brentwood Real Estate
Fannie Mae’s projections reflect some temporary challenges in the housing market, driven by the “lock-in effect,” affordability concerns, and a slow return of buyers. However, Brentwood’s upscale market may be more insulated from these trends, given its appeal to luxury buyers. While inventory levels are rising nationwide, Brentwood homes for sale—especially in sought-after neighborhoods—are likely to maintain their value.
For sellers, now is the time to position your home effectively to stand out in the market. If you’re a homeowner considering listing your property, our team can help you make the most of current market conditions in Brentwood. On the flip side, for buyers, the potential dip in mortgage rates in 2025 offers a prime opportunity to invest in Brentwood real estate at an attractive rate.
Contact Los Angeles Luxury Real Estate Broker Abdo Pierre Faissal at Nourmand & Associates for more information 310-620-1038 / [email protected]