What Falling Inflation Means for Home Prices and Interest Rates

If you’ve been waiting for the real estate market to give you a clear signal—this might be it.
Recent reports show inflation is finally cooling faster than expected, and that’s creating a ripple effect across everything from mortgage rates to home prices. But before anyone pops champagne or hits the panic button, let’s talk about what this actually means for our local market here in Los Angeles and Ventura Counties.

1. Lower Inflation = A More Predictable Market

For the past couple of years, inflation’s been the wild card keeping interest rates high and buyers cautious. Now that inflation is trending down, the Federal Reserve has less pressure to keep rates elevated.
Translation: We’re likely to see mortgage rates gradually dip—not overnight, but enough to get the attention of buyers who’ve been sitting on the sidelines.

2. For Buyers: The Window’s Opening, But Don’t Wait for “Perfect”

Falling inflation can help nudge mortgage rates lower, but here’s the catch—when rates drop, competition spikes. Every buyer who’s been waiting for “better timing” tends to jump in at once. That means homes start moving faster and prices edge up.
If you’re serious about buying, it might be smarter to lock in before the crowd rather than waiting for rates to hit rock bottom (because by then, prices may already have climbed).

3. For Sellers: A Shift Back in Your Favor

Lower rates mean a bigger buyer pool—and that’s great news if you’re thinking about selling. We’re already seeing more showing activity and a slight bump in pending sales across parts of the LA–Ventura corridor.
That said, strategic pricing still matters. Today’s buyers are informed and rate-sensitive, so even as demand picks up, homes that show well and are priced right continue to sell faster and closer to list price.

4. Locally Speaking…

Our market isn’t like the national headlines. Here in West Hills, Woodland Hills, Calabasas, Agoura, Thousand Oaks, and Westlake Village, we’re seeing price stability with a gentle upward trend—especially for turnkey homes in prime neighborhoods.
Inventory remains tight, and that’s helping to keep prices firm even as rates fluctuate.

5. The Bottom Line

Falling inflation is finally giving the market room to breathe. For buyers, it’s a sign that opportunity is coming back into focus. For sellers, it’s a reminder that pent-up demand is ready to re-enter the market.
In other words—this could be the moment both sides have been waiting for.

If you’re wondering how this shift impacts your specific neighborhood or price range, let’s talk. I can help you determine what makes sense for your timing and goals.

Anthony Guetzoian
Broker/Owner – Century 21 Valley Properties
Local Expert | 30+ Years of Experience
📞 818.266.1100