How Is the Real Estate Market Right Now?

“How is the housing market right now?” I’ve been getting this question a lot recently, and I understand why. This is the time of year when people plan their moves for 2025, but it’s difficult to know what you should do without understanding where the market is at. The truth is that our market can be summed up in one word: Normalization. While the red-hot market of the pandemic is far behind us, the market isn’t heading for a crash anytime soon. Instead, things are balancing out. Here are three things you need to know about our normalizing housing market: 

1. Competition is increasing. There are more homes for sale in the U.S. than there have been since before the pandemic. For buyers, this means more options For buyers, this means more options. If you’ve been frustrated by the lack of options, now might be the time to reenter the market. Meanwhile, sellers need to reset expectations about how long it will take to sell. You can still get a great deal in this market, but your home probably won’t fly off the market like it would have a few years ago. 

2. Prices are increasing slowly but steadily. In most markets around the country, prices are still increasing, although it’s at a modest pace. Redfin expects prices to increase by 4% in 2025, which means sellers need to be careful about not overpricing their properties. Prices are increasing, but buyers are savvy enough to know when a property isn’t worth what you’re asking. Meanwhile, buyers can be confident that they will start building equity as soon as they close.

3. Condition matters. Right now, there is a large gap between homes that need a little work and homes that are in pristine condition. Good-quality homes still sell quickly and for top dollar; they might even create a bidding war among buyers. On the other hand, homes in need of repairs could sit on the market for a long time. Buyers don’t have a ton of extra cash on hand for repairs after closing, so small investments upfront could make it much easier to sell your house.

These points are broad strokes that are generally true for most markets across the country. However, you should know that real estate is hyper-local. What’s happening in your neighborhood might not be true for your area in general. If you want to learn more about your local market, call or email me for more details. I’d love to share more information with you.  

Should I Sell My Home During the Holidays?

Do you need to sell your home soon but are afraid no one will want to buy during the holidays? Conventional real estate wisdom says that no one is looking to purchase a house this time of year. After all, everyone’s kids are home from school, and they must be incredibly busy from the holidays, right? 

The truth is that most people move when they need to, not when they want to. You can still get a great deal during the holiday season for your home sale; in fact, there are even a few key advantages. Here are three reasons why you should consider selling your home during the holidays: 

1. People have more time off during the holidays. It’s true that people are busy on Thanksgiving, Christmas, and New Year’s, but you have to remember that those are only three days out of the year. For the rest of the holiday season, most people have extra time off to look at homes and plan out a move. A three-day weekend or extended break is just the excuse some buyers need to get out and look at your home.

2. Inventory is low. When you list your home, you want there to be the least amount of competition possible so that you’re in a stronger negotiating position with buyers. Fortunately, December and January are when homes for sale hit a year-long low. This means buyers don’t have as many choices, and you might be able to ask for more concessions during negotiations. 

3. Buyers are highly motivated this time of year. You don’t have to worry about window shoppers this time of year. If a buyer is interested in your home during the holiday season, it probably means they need to move as soon as possible. This could be because they need to get a new job, they need to move soon for tax reasons, or anything else. Whatever their motivation is, you can be sure they’re more likely to be serious about buying your home and following through with the deal. 

If you want to sell in Q1 next year, please call or email me for a free pre-listing consultation. It always pays to plan ahead, and I’ll go over everything you need to make sure you get the best deal possible. I look forward to hearing from you!

What Do Experts Forecast for the 2025 Housing Market?

Right now, the No. 1 question I’m getting is, “What’s going to happen to the housing market in 2025?” I get it; a lot of people had plans to move this year but put things on hold due to higher mortgage rates and a slowing market. This begs the question: Will 2025 be any different? The short answer is yes, although there probably won’t be a dramatic shakeup that flips the market on its head. Today, I’m going over what the top experts are forecasting for mortgage interest rates, home prices, and buyer demand in 2025. Plus, I’ll share my insights on how you can get ready for these changes before the new year even starts: 

1. Mortgage rates will ease slightly. It’s no secret that higher mortgage interest rates have hurt affordability for buyers and caused our market to slow down. U.S. existing home sales hit a 14-year low in September 2024, and one of the biggest reasons why is that would-be buyers are sitting on the sidelines waiting for rates to drop. While Fannie Mae and Freddie Mac aren’t predicting rates to crash to where they were a few years ago, most experts believe rates will fall below the 6% mark for the first time since Q2 of 2022. Since mortgage rates are a key factor in housing affordability, this is fantastic news for buyers sitting on the fence. 

2. Home prices will increase slightly. While home prices have stagnated recently or even come down in some areas of the country, prices are projected to rise in 2025. Different institutions have varying forecasts, but prices are expected to rise 2.6% when you average their predictions. This is a modest increase compared to what we’ve seen over the last few years, but it projects stability for our market. Homeowners don’t have to worry about prices crashing, while things will stay relatively affordable for new buyers. 

3. More buyers will enter the market. Lower interest rates and steady prices mean demand for homes will increase. According to the Senior Economist at Wells Fargo, “Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.” As these buyers enter the market, the pace will speed up. Homes will sell faster, competition will increase, and supply will decrease as more buyers fight over fewer options. 

So what does this all mean for you? If you want to sell, 2025 is looking to be a great year for the market, so I recommend you start planning your move now so you can get a head start. On the other hand, buyers need to act fast. There will be a very short window where rates are lower, but home prices haven’t increased yet. If you’d like to plan for 2025, whether you’re looking to sell or buy, please call or email me. I’d love to help you plan your next move!