March 2025 is the turning point. Buyer enthusiasm is back. I can feel it in the appraisals I'm doing.
The Numbers
February 2025: 47 appraisals (up 26% from February 2024) March 2025 (first 10 days): 38 appraisals already
If this pace holds, March will be 110+ appraisals. That would be my highest single month since October 2022.
That's enthusiasm.
What Changed
Interest rates. The Federal Reserve cut rates in February. Mortgage rates dropped from 6.8% to 6.3%.
That 0.5% drop felt small to economists. To buyers, it felt like freedom.
Suddenly, properties they couldn't afford are affordable. Suddenly, waiting isn't necessary.
Suddenly, there's urgency.
Market Dynamics
More buyers. More sellers listing (competing with spring seasonality). More inventory. More activity.
Appraisals are coming in tight to sales prices. Competition is healthy (not bidding-war frenzied, but competitive).
The market is functioning normally at a higher activity level.
Regional Activity
Orange County: Hot. Newport, Huntington, Irvine all seeing strong activity.
Inland (Riverside/San Bernardino): Investor surge returning.
Los Angeles County: Mixed, but coastal strong.
Ventura County: Moderate activity.
Investment Property Return
Investors are back in force. A property that didn't pencil out at 6.8% suddenly works at 6.3%.
I'm doing 12-15 investment appraisals per week now. In 2024, that was 6-8 per week.
That doubling is significant.
Appraisal Quality Challenges
With surge comes speed pressure. Lenders want appraisals in 10 days instead of 14. That's doable but requires focus.
I'm not compromising quality. I'm just working longer days.
Seller Advantage
Sellers should list now. The surge is happening in March-April. By May, momentum might ease. List while enthusiasm is high.
Appraisals will support reasonable pricing because comparable sales data is abundant.
Buyer Reality
Competition is increasing. Good homes get multiple offers. You need financing pre-approved and you need to move fast.
The patient buyer market of 2024 is over. March 2025 is back to moving quickly.
Confidence Restored
The psychological shift is real. In 2024, people were cautious. In March 2025, people are making decisions.
That's what rate cuts do. They restore confidence.
The market is alive again. Not booming, but active and healthy.
That's the early 2025 signal.