_{1. Expanded Opportunities for Multiple ADU Units in 2025}

_{California continues prioritizing Accessory Dwelling Units (ADUs) to address the housing crisis. Effective January 1, 2025, new laws make it easier for homeowners to add up to four units on single-family lots. Please check in with Mark Bolender for assistance on these projects and opportunities.}

_{Key Updates:}

• _{Preapproved Plans (AB 1332): Cities must offer preapproved ADU plans to speed up the permitting process.}
• _{Amnesty for Older Units (AB 2533): Noncompliant ADUs built before 2018 can be legalized without penalties.}
• _{Flexibility for Multifamily Properties (SB 1211): Owners can add ADUs equal to 25% of existing units.}
• _{Smaller Lot Restrictions Lifted: At least two units of 800 sq. ft. are allowed regardless of lot size.}

_{What This Means for You:}

• _{Homeowners: ADUs offer new income streams, equity growth, and options for multi-generational living.}
• _{Buyers: Properties with ADUs or room to expand provide valuable opportunities to offset costs.}

_{Check local planning departments for specific requirements. These updates make ADUs a smart strategy for boosting property value in 2025.}

_{2. Changing Agent Compensation Models}

_{Evolving brokerage fees and compensation structures are changing the way agents are possibly paid.  Buyers and buyers agent negotiate their fee now up front before making an offer. Everything is negotiable and consumer can interview more than one agent. All buyer agent brokerages are different in their approach.}

_{Buyers and sellers must understand these new changes to ensure a smooth transaction and budget effectively. Please be aware that all compensation structures and fees are negotiable between client(s) and broker.  Note: Buyers can elect to make an offer without representation from an agent.} 

_{3. Affordability Challenges Persist}

_{Higher mortgage rates and rising home prices continue to strain affordability. Buyers face tighter budgets, while sellers see fewer qualified offers.}

• _{Buyers: Explore assistance programs and multi-unit properties, and prioritize long-term value.}
• _{Sellers: Competitive pricing and closing cost incentives can attract serious buyers.}

_{4. Homes Are Taking Longer to Sell}

_{Older homes or properties needing significant remodeling are lingering on the market for 2-4 months or more, as today’s buyers are cautious about taking on additional costs. On the other hand, cream puff homes—move-in ready, well-priced, and professionally staged—are still selling quickly, often with multiple offers in the first week or two.}

• _{Sellers: Consider modest renovations or professional staging to improve appeal if your home needs updates. Work with an experienced agent to price appropriately and highlight standout features.}

_{5. Mortgage Rates Remain Elevated}

_{Rates for 30-year fixed mortgages hover between 6.5% and 7%, reducing buyers’ purchasing power.}

• _{Buyers: Secure rate locks early and explore lender incentives.}
• _{Sellers: Emphasize energy efficiency or rental income potential to attract buyers.}

_{6. Limited Inventory with Rising Prices}

_{Southern California’s housing inventory remains tight, with prices expected to rise 3-5% this year. Coastal cities remain competitive, while inland areas like Riverside offer more affordable options.}

• _{Buyers: Act quickly when you find the right home.}
• _{Sellers: Price realistically to attract offers.}

_{7. Sustainability Matters}

_{Features like solar panels and drought-tolerant landscaping are highly sought, offering utility savings and boosting market appeal.}

• _{Homeowners: Explore state and federal rebates for green upgrades.}

_{Final Thoughts for 2025}

Final Thoughts for 2025

This is going to be a topsy-turvy ride, in my opinion. There are lots of unknowns about the economy and real estate market with the decline of commercial real estate. However, I'm optimistic for 2025, as many talented people are still moving here and they are buying homes. Prices will still rise, however slowly, they will still go up a possible 2-5%.

That upward trend will potentially continue, with its new year, possible twists and wild turns, as it's sunny here in Southern California, and that always sells itself. Cheers!

• _{Buyers: Focus on properties with income potential and flexible financing options.}
• _{Sellers: Prepare for longer listing times unless your home is move-in ready. Partner with a knowledgeable agent to develop a competitive strategy.}
• _{Everyone: Stay informed on housing laws.}

Stay warm:-)

Call Me:-) 310-857-4956 or 661-714-0510

Mark  Bolender

DRE: License 01065007