December Froze the Housing Market...

As we step into 2025, the housing market is experiencing its most notable seasonal slowdown in nearly two years, primarily driven by elevated mortgage rates. This has led to several key shifts:

Market Trends

Increased Time on Market: In December, homes remained on the market for an average of 70 days, marking the slowest December in five years and the slowest month since January 2023. This is nine days longer than the same period last year and eight days longer than the previous month.

Inventory Trends: Active listings grew by 22% year-over-year, extending a 14-month trend of annual growth. However, seasonal factors have driven the total number of homes for sale to its lowest level since June.

Home Prices: The median listing price in December was $402,502, reflecting a 1.8% decline from last year. Despite this, the median price per square foot increased by 1.3%, signaling a market shift toward smaller, more affordable homes.

Regional Differences: The South and West saw the most significant inventory growth, with active listings rising by 26.7% and 23.7%, respectively. Meanwhile, the Midwest and Northeast experienced more modest increases of 15.2% and 6.9%.

Looking Ahead to 2025

Economists predict a gradual improvement in the housing market, with key expectations including:

• Home Sales: A projected increase of approximately 1.5%.

• Mortgage Rates: A potential decline, averaging around 6.3% for the year.

These factors may improve affordability and encourage increased buyer activity in the months ahead.

I’ll continue to monitor market trends and provide updates throughout the year. If you have any questions about how these shifts impact your real estate plans, feel free to reach out.