2024 Year in Review and 2025 Predictions

2024 Continued in the same vane as 2023, slow! We finished 2024 at one of the slowest paces since 2010. As a whole market we saw the number of sales down and days on market inch up a bit. Last year we predicted that interest rates and inventory would be the two biggest factors in our local market. We did in fact struggle with inventory in 2024 and the feds did reduce rates, however, not as much as we had expected.

In 2025, we expect to see a few more rate reductions. As rates come down, we expect to see inventory increase, the rate reduction will allow sellers who want to move, but don't want to give up their low interest rate, to make a move. With increased inventory, we predict that we will see more sales than we saw in 2024, however, we do expect there to be some pressure on pricing as inventory increases, rates remain higher (in comparison to past years) and the latest challenge, homeowners insurance.

The current cost of homeowners insurance is pricing some buyers out of the market. Unless and until the state figures out a better solution to the homeowner’s insurance problem, we believe we will see pressure on pricing. There is still quite a bit of pent-up buyer demand, but buyers are becoming more and more discerning in evaluating the value of their purchase. There continues to be little to no foreclosure activity in the local market, we don't expect to see any change in this for 2025.

Our forecast for 2025 is optimistic, with a slight increase in year-over-year sale prices of about 2-5%. We expect to see market time above previous years, home sellers should be prepared to negotiate and to offer incentives to buyers to help offset the monthly cost increase in their payments due to higher rates, higher prices and insurance. Our team has extensive experience in all markets: buyers market, sellers market and a "balanced" market. How you approach a purchase or sale in these markets is very different. If you are considering making a move, call one of us today to discuss a plan that will optimize your chances of selling for the most money in the shortest amount of time.