2025: New Year, New Goals, New Real Estate Opportunities

Happy New Year, everyone! I hope your holidays were filled with joy, laughter, and just the right amount of chaos. Mine certainly were. Hosting family on both Christmas Eve and Christmas Day? Let’s just say I earned my place on Santa’s “nice” list this year. The festivities were amazing, but by New Year’s Eve, I was ready for something low-key. We broke out some board games, half-heartedly watched the clock, and barely made it to midnight. Riveting stuff, I know!

But now it’s 2025, and I’m super excited for this year. I actually feel more positive about the coming year than I have in a long time. There’s a sense of optimism in the air, and the buzz around the real estate market feels noticeably stronger than last year. The Feds indicated that there may not be as many interest rate cuts in 2025 as initially anticipated, which on the surface might sound like not-so-great news for buyers. However, markets are unpredictable and we’ll see how things shake out. My gut feeling? It’s going to be a busier year, so if you’re thinking about making a move, now’s the time to get ahead of the curve.

December & 2024 Market Snapshot

New Listings:
In December, we saw 1,068 new listings hit the market. That’s a 4.1% increase compared to December 2023 but a noticeable 26.8% drop from November 2024. This seasonal slowdown is typical for our market as the year wraps up, but the slight year-over-year growth is an encouraging sign.

Pending Sales:
Pending sales reached 1,326 in December, which is up 1.3% from December 2023 but down 16.2% from November 2024. Fewer pending sales in December align with the holiday season when many buyers and sellers take a step back, but the steady year-over-year growth shows underlying demand remains strong.

Closed Sales:
December closed out the year with 1,534 closed sales, up 15.3% from December 2023. Compared to November 2024, however, this figure dropped 8.7%. Again, this month-to-month decline is in line with typical seasonal patterns.

Inventory and Market Time:
Inventory tightened slightly to 2.7 months in December, while the average time on market increased to 74 days. A decrease in inventory often signals increased competition among buyers, and the longer market times could be due to buyers taking their time over the holidays.

2024 Year-End Summary

Looking at the bigger picture, 2024 proved to be a relatively stable year for the market:

New Listings: 29,586 new listings came to market in 2024, almost identical to 2023, with a slight 0.3% decrease.
Pending Sales: Pending sales grew 2.8%, reaching 21,961.
Closed Sales: Closed sales also saw a bump, increasing 3.7% to 21,715.

Home Appreciation Rates

In 2024 we saw a much more sustainable growth pattern for Real Estate and the economy in general. Appreciation rates of 17%-20% sound great when you’re already a homeowner and you get to watch your home value soar on Zillow. However, that kind of price increase year over year really puts a strain on buyers. Which contributed to the drastic market shift we saw when the interest rates jumped up. It’s also not sustainable from an inflation standpoint, we were due for a market correction.

Average Sale Price: Up 1.8%, from $598,000 in 2023 to $608,600 in 2024.
Median Sale Price: Up 2.1%, from $532,000 to $543,000.

I would consider a “healthy” appreciation rate to be between 3%-5% and 2024 did fall short of that a bit. However, I think it’s a good thing overall. If 2025 turns out to be the kind of year that a lot of financial experts are predicting then I think we’re likely to see a “healthier” appreciation rate this year.

Looking forward to 2025

While I can’t predict the future, I think it’s going to be a great year for both buyers and sellers. Let’s tackle your real estate goals together this year, whether it’s understanding market trends or finding the perfect home, I’m here to help.

On a personal front, I’m starting 2025 with a New Year’s resolution: getting back into running shape. (I know, cliché, but hear me out.) I’ve been a regular at the gym for years, but my focus has primarily been on weights, because let’s face it, plain ol’ running isn’t exactly fun. This year, though, I’ve committed to running Hood to Coast. Not only that, but I’ve somehow convinced a few family members to join my team, including my daughter Maddie. If this doesn’t bring us closer together, or lead to some epic family drama, I don’t know what will. As an added bonus, all this running training should help me keep up with the much younger guys that I play basketball with, at least in theory.

Training for Hood to Coast is going to be an adventure. I’m picturing a lot of huffing and puffing, possibly some blisters, and definitely the occasional “Why did I sign up for this?” moment. But if there’s one thing I’ve learned, it’s that pushing yourself, whether it’s in running, real estate, or just life, its always worth it.

So, whether your 2025 goals involve buying or selling a home, starting a new hobby, or just making it through your next family gathering without losing your mind, I’m here to help. Let’s tackle this year together and make it one for the books!

And if you happen to see a guy wheezing his way through the neighborhood in running shoes, wave hello, it’s probably me, and I could definitely use the encouragement.

Here’s to a fantastic year ahead!

—That 1 Realtor Guy