The Local Real Estate Landscape — Fall 2025
- Admin
- Oct 2
- 2 min read
We’re seeing a nuanced, more balanced market emerging in Dana Point, San Clemente and San Juan Capistrano as we head into Fall 2025. While it’s not a buyer’s market outright, the pendulum is gently shifting and both buyers and sellers need to adjust strategies.
What’s happening now
Prices continue to inch upward, but at a slower, more sustainable pace. Dana Point and San Juan Capistrano still show solid gains (~6 %) year-over-year, while San Clemente’s growth is more modest (~2–3 %)
Inventory is loosening after a historically tight stretch. Listings that might have gotten swept up immediately now linger, especially if condition or pricing is off.
The time it takes to sell (market time) is lengthening. The “snap” of earlier years is softening and buyers now have more room to shop and negotiate.
That said, well-priced, turnkey homes in desirable locations are still attracting strong interest and multiple offers.
Interest Rates: The Elephant in the Room
Mortgage rates are elevated by historical standards. Recent data suggests 30-year fixed rates in California are around 6.35-6.43%, depending on credit score, down payment, loan amount and other factors.
Many economists forecast that rates in 2025 will hover in the 6.5 % range, possibly easing slightly toward year-end if inflation and Treasury yields cooperate.
Even a small decline in rate (say from 6.8 % to 6.4 %) can meaningfully boost buyer purchasing power in these high-dollar coastal markets.
Tips & Strategy
For sellers: Price realistically, invest in staging and curb appeal and be ready to negotiate. The strongest offers will come for homes that are move-in ready and properly priced in today’s environment.
For buyers: Get pre-approved and act quickly when a good property surfaces. Use recent comparable sales (not 2022–23 comps) to benchmark. Leverage any negotiation room for inspections, timing, or seller credits.
For both sides: Monitor local market time and supply shifts. Watch mortgage rate moves—if there’s a break lower, expect a short-term surge in buyer activity.
By Vicki Patterson
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