January 2025 Market Update
Happy January!
Here's a quick look at the market going back six years.
From 2019-2021 with historically low interest rates, we had over 13,000 sales per year. In 2020 with a lot of uncertainty and things shut down for a bit we saw our highest number of sales in this six year period. Interest rates began to rise rapidly in early 2022, and you can see that drop from 13,178 in 2021 to 11,731 in 2022 as buyers raced to get under contract as rates rose. As rates have held higher you can see the massive difference in sales volume in 2023 and 2024. The recent relatively small rate drops did not entice too many, and with current reports showing inflation is still well above 2%, I am not holding out for lower rates in the first half of this year. Also, the elephant in the room: Housing prices are insane. That has a massive effect on buyers as well. It's a double whammy.
YEAR # SOLD AVG SOLD PP
2024 10,038 $390,503
2023 9,992 $363,482
2022 11,731 $346,002
2021 13,178 $325,568
2020 13,557 $287,596
2019 13,373 $245,700
What will 2025 bring? Even with the economic uncertainty of Covid in 2020/2021, the housing market, fueled by lower interest rates, churned along. I do not know if the economic optimism and growth that
many are expecting will translate into more homes available for those that have been wanting to make the move but have been holding off. They have been holding off mostly due to interest rates. Why go from a 2.5% rate to a bigger home with a larger mortgage at more than double that rate? If I was looking to buy up, but didnt have to, I would most likely stay put too if I could stand it. Now, if you are a first time home buyer, or if you are downsizing with a ton of equity instead of upsizing, etc..you see things from a different lense. Interest rates do affect everyone though, even if they are still historically low.
It's a great time to set up a meeting if you have been thinking that 2025 is your year. Please don't hesitate to give me a call, text, or email!
Best Regards,
Joe