To those impacted by the fires

Our hearts are heavy as we continue to watch these horrific fires unfold across our beloved Los Angeles neighborhoods. 

We want to tell everyone who reads this newsletter that if you have been impacted by these fires, your safety is our top priority, along with your well-being. We share your pain in what it must feel like to lose all your cherished belongings.

Please know that we are here for you in any way you need. Whether it’s connecting you to resources (like those you can find here ), providing temporary shelter for you or your pets, or arranging clean-up support, our team is committed to offering our help through this challenging time.

We also want to express our gratitude for all the brave firefighters and selfless community members who are giving so much of themselves to help those in need. Your strength and compassion are a beacon of hope, and proof that, together, we will rebuild and rise stronger.

– James and David

The homeowners that say they will “never” sell

34% of homeowners say they’ll never sell their home, according to a recent survey commissioned by Redfin. Overall, homeowners are staying in their homes longer. In 2005, the average homeowner stayed 6.5 years, while in 2023, that number reached 12 years. Here are other interesting findings:

• This is when homeowners say they are planning to sell their home:

  • 24% in 5-10 years

  • 8% in 3-5 years

  • 7% in 0-3 years

• Here is the breakdown by generation of homeowners who say they’ll never sell:

  • 43% of Baby Boomer owners

  • 34% of Gen X owners

  • 28% of Millennial/Gen Z owners 

• Here were the reasons given for not selling:

  • 39% reported staying put because their mortgage is either fully or mostly paid off

  • 37% simply enjoy their current home and see no reason to move

  • 30% noted high home prices as a factor

  • Only 18% attributed their decision to their low existing mortgage rate

Our take

Don’t let these survey results discourage you. As highlighted in our next story, active listings and inventory are on the rise. At the end of 2024, even with these homeowner attitudes in place, the housing supply had reached a four-year high, with active listings up 22% year-over-year and inventory increasing 17.5%. We always say to take this type of data with a grain of salt. Attitudes and situations can change in unexpected ways.

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States where inventory is back to pre-pandemic levels

Active listings rose 22.0% nationwide between December 2023 and December 2024, according to a recent ResiClub report. This growth suggests that homebuyers have gained more leverage in many areas across the country, with some markets even beginning to resemble buyers' markets. Here are some key stats to know and trends to watch:

• The total number of active listings nationwide was 871,509 in December.

• If the current year-over-year inventory growth rate of +157,333 homes continues, active listings are projected to reach 1,028,842 by December 2025.

• 9 states have currently surpassed pre-pandemic 2019 active inventory levels: Arizona, Colorado, Florida, Idaho, Oklahoma, Tennessee, Texas, Utah, and Washington.

• Oregon, Alabama, Nebraska, Hawaii, and Georgia are likely to surpass 2019 levels soon

Our take

Keeping tabs on active listings is important. Over the past three years, we’ve seen slower home price growth, and even price declines, in markets where inventory has returned to pre-pandemic levels. On the other hand, markets with inventory still significantly below pre-pandemic levels have generally experienced stronger price growth during the same period. The key question moving forward is whether active inventory and months of supply will continue to increase, potentially leading to more markets experiencing outright price declines.

Best markets for first-time homebuyers in 2025

Realtor.com just published a study highlighting the best markets for first-time homebuyers in 2025, based on factors such as local prices, incomes, amenities, and more. The report analyzed 3,579 Census-Designated Places within the nation’s 100 largest metropolitan areas and identified the top 10 markets. To qualify, these locations needed a population of at least 5,000 and a minimum of 500 active for-sale listings over the past 12 months.

Here are the top 10 cities for first-time buyers in 2025:

1. Harrisburg, PA

2. Rochester, NY

3. Villas, FL

4. Lauderdale Lakes, FL

5. Altamonte Springs, FL

6. Lansing, MI

7. North Little Rock, AR

8. Baltimore, MD

9. Tonawanda, NY

10. Wilmington, DE

Our take

As 2025 begins, first-time buyers may find some relief in a market that's slowly becoming more favorable. Housing inventory has reached its highest level in four years, alleviating the severe shortages that once made home shopping a challenge. Additionally, an increasing number of properties are seeing price reductions, and the pace of home price growth has significantly cooled, marking a departure from the rapid escalation we saw in the aftermath of the pandemic.

The news that just missed the cut

• LA Wildfires: The human, environmental, and financial impact

• What happens to insurance premiums after the fires in LA

• What to know about temporary housing, rents, and price gouging during the firestorm

• How to tell if your home is in a fire zone before buying

• If you lost your home or business in the wildfires, here’s what to do next

Foundation Plans

Advice from James and David to win the day

Whether you're a new agent or seasoned veteran, it’s important to fully understand your client's expectations. Today, we’re going to focus on four common and important expectations from your buyer clients. This will help you come in prepared to handle (almost) any question they throw your way.

Know every listing in your market cold – Clients expect you to be well-versed in the local market, beyond just new listings. Familiarize yourself with square footage, room counts, and property details for every home in the area. Your clients are likely looking at listings daily. Don’t let them know more than you. Whether you work with buyers or sellers, analyze the MLS hot sheet daily to stay current on new listings, properties sold, price points, and reductions. By dedicating 10-15 minutes a day to this process, you'll be well-prepared to answer clients' inquiries about the market.

Know how much your client can afford – Even if they don’t go into detail about their finances, buyers will expect you to know exactly what’s in their price range. Make sure they are working with a reputable lender and that they understand how changing mortgage rates affect their monthly payments. Above all, make sure they have a realistic outlook on all the costs that come with homeownership. 

Know your client’s dream home – Buyers have must-haves, needs, and wants. As agents, we want to deliver on as many of those desires as possible. Ask specific questions to understand their preferences and motivations, and see where they can bend a little. For instance, if they need four bedrooms for a home office, would a three-bedroom option work? Would another type of room work for an office? Do they really need to work at home? Addressing their 'whys' narrows down their options and brings them closer to their dream home.

Know how to negotiate – While your clients might not be aware of all the behind-the-scenes work, they know negotiating is a crucial part of your role. Whether it's the sale price or home inspection, ensure you have the skills to benefit your client. Stay connected with fellow agents to learn effective strategies in the current market. Continuously educate yourself, practice negotiation skills, and watch your business thrive. We strongly recommend that you role-play with your mentors and trusted agent-confidantes.

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Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

For those of us in Los Angeles, this is truly a trying and horrific time. The vulnerability you feel after losing a home is uniquely overwhelming. We want to echo again what we’ve said up top and on Instagram: Reach out to us. Whether it’s connecting you with resources, offering temporary shelter, or clean-up support, our team is committed to helping you.

We’ll rebuild and rise stronger — together.

– James and David