Market Update February 2025
Westlake Village, Agoura Hills, Oak Park, Thousand Oaks and Newbury Park
By: Michael Rice | February 3, 2025
My View From Inside
The devastating fires that swept through parts of Southern California have forever changed the landscape. With thousands of homes lost, the effects will eventually ripple through the local real estate market.
A Surge in Rental Demand
Many displaced homeowners have already turned to the rental market, eager to secure housing before availability tightens. Fortunately, price-gouging laws help keep rent increases in check.
A Second Wave of Buyers is Coming
In the next 3 to 6 months—possibly sooner—homebuyers affected by the fires are expected to enter the market, driving demand higher.
How This Could Affect Home Prices
The Palisades will take years to rebuild, and this will likely push two types of displaced buyers into the Conejo Valley real estate market:
- Permanent Relocators – Some homeowners may choose to cash out their insurance settlement and permanently move to the Conejo Valley. These buyers will likely focus on luxury homes priced at $2 million and above.
- Temporary Buyers – Others may buy a home as a short-term solution while they rebuild in the Palisades. These buyers are expected to target homes in the $1.2M – $1.5M range, with plans to sell or rent out the property once their primary home is ready.
Meanwhile, housing inventory has been rising. At the end of January, 303 homes were on the market—up 40% from last year. Whether this trend continues remains to be seen, but an increase in demand could lead to more competition among buyers.
Home Insurance: What Buyers Need to Know
Many prospective buyers are wondering: Will I be able to secure affordable home insurance? The short answer: Yes.
I spoke with my insurance broker, and he reassured me that there’s no reason to panic. Every home is insurable, and there’s little difference between securing coverage in Los Angeles vs. Ventura County.
The Role of the CA FAIR Plan
Around 30-40% of fire insurance policies being written right now are through California FAIR Plan, which covers basic fire, lightning, and wind damage. However, it does not cover:
✅ Liability insurance
✅ Water damage
✅ Theft
Most homeowners pair a supplemental policy with their FAIR Plan coverage. Combined, these policies typically cost $4,000 – $8,000 per year. The good news? The FAIR Plan has significantly improved over the past three years and now offers service on par with major insurance carriers.
Even better, more private insurers are expected to return to the market in the next year, which could bring more options for homeowners.
Bottom Line…
This year’s market is shaping up very differently from last year. Even before the fires, demand was already picking up, with both buyers and sellers reentering the market after two years of historic lows.
With spring approaching, competition will only intensify. If you’re in a position to buy now, acting sooner rather than later could help you get ahead of rising demand.
Advice for a Successful Home Purchase or Sale This Year
Read: My Advice for Buying a Home in 2025
Read: My Advice for Selling a Home in 2025
Ready to talk? Feel free to reach out (818) 384-9929 | Michael@ConejoValleyGuy.com
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What to expect moving forward
- January saw a 70% increase in new listings compared to last year, and this trend is likely to continue, peaking around May or June.
- Mortgage rates are expected to fluctuate between the low to mid-6% range throughout the year, so buyers should stay informed on rate changes.
- Buyer demand is picking up faster than new listings are hitting the market, especially in popular neighborhoods. If you’re serious about buying, be ready to move quickly.
- Homes that have been on the market for 30+ days may be more flexible on price—don’t hesitate to negotiate!
Seller’s Corner
The uptick in competition from other homes for sale is shifting the market away a bit from sellers. It’s definitely not the seller’s market of years past. It’s critically important to price your home correctly from the beginning. Buyers are eagerly waiting to pounce on the popular homes. If you miss that first window to attract a buyer, you may have a tough time getting them to come back again once you inevitably drop the price.
What's The 2025 California Forecast?
According to the California Association of REALTORS
- The median price of a home is expected to increase 4.6% in 2025.
- The number of home sales is expected to increase 10.5%.
- Interest rates are expected to average 5.9% in 2025.
Market Snapshot
Home Prices
- The median price of a Conejo Valley home was up in January to $1,195,000.
- That’s 1 consecutive month up year over year.
- Prices are up 22.2% from $978,000 last January.
- And up $170,000 from last month.
For Sale
- January ended with 303 homes for sale.
- Up 39.6% from last January.
- That’s 86 more homes than last year.
- And 79 more homes than last month.
Days on Market
- It took 43 days on average to sell a home in January.
- Up 46.6% from last January.
- That’s 14 more days than last year.
- And 5 fewer days than last month.
