All the housing market data for 2024 is in, and it’s fair to say that the housing market surprised us again! However, there are two big trends that stand out as we launch into 2025 — affordability and sellers in the market.
What's the Deal with Affordability?
The elephant in the room is affordability. Home prices finished 2024 up a few percent nationally and mortgage rates are at their highest level in seven months — back over 7% as we head into January. In fact, at $2,290, the typical mortgage payment for homebuyers is starting this next year at the highest level ever.
Why Sellers are Making Waves
On the other side of the coin, sellers are making waves in the housing market. With the rise in home prices, many homeowners are taking advantage of the seller's market to make a profit on their properties. This influx of sellers is creating more options for buyers, but also driving up competition and prices in certain areas.
What to Expect in 2025
As we move further into 2025, it's important for both buyers and sellers to stay informed and adapt to the changing market conditions. Affordability will continue to be a key factor for buyers, as rising prices and mortgage rates impact the overall cost of homeownership. Sellers, on the other hand, will need to navigate the competitive market and make strategic decisions to maximize their returns.
Overall, the housing market in 2024 has set the stage for an interesting year ahead. By staying informed and working with trusted real estate professionals, both buyers and sellers can navigate the market with confidence and achieve their goals in the ever-evolving real estate landscape.
