January 2025 Market Update

A new year and a new market update! Home inventory remains steady with moderate buyer activity despite the winter months. This time of year is typically slower than other month due to winter weather and the business of the holiday season. There was movement in the market in January, with some mild fluctuations compared to December.

Days on Market: Increased compared to December, indicating a slightly slower pace for sales.

Average Sales Price: On the rise, showing positive value growth despite the seasonal market slowdown.

Inventory: The number of homes available remains steady, similar to December levels.

If you are interested in more information regarding the local housing market, give us a call!

RE/MAX Professionals 307-682-6622

So Now What...

In last week’s blog, we looked at what the experts are predicting for the real estate market this year. There is an expectation that more inventory will be on the market this year as sellers who have been reluctant to list their homes are now ready to make a move due to life circumstances.

If this describes your situation, the next couple of blog posts we will be doing is for you! In this series, we will breakdown the selling process and provide some tips to help you navigate the milestone of selling a property. Selling a home can be a complex process, and is often an emotional one as well. Our goal is to provide helpful knowledge to empower sellers while working with a RE/MAX Professionals' agent.

Let’s start at the beginning with finding the right agent. RE/MAX, LLC has compiled a list in their RE/MAX Homeseller's Guide of possible questions to ask when looking for an agent. The list of questions below is not intended to be an all encompassing list but is good starting point when interviewing an agent.

2024 Real Estate Recap & 2025 Market Outlook: What’s Ahead for Homebuyers and Sellers

2024 was a memorable year in real estate. Factors such as higher interest rates, institutional investment buyers, soaring rents, and a shortage of inventory led to a challenging market. It was a year of record highs and lows. Real estate consumers were richer and older than ever before which

makes for tough competition for younger buyers and those in the middle class. These two groups of consumers were consistently pushed out of the real estate market last year. The median age of first time homebuyers was 38 years old in 2024, bumped up from 32 just a few years ago. The median age of homebuyers was 56 years old; in 2023 it was 49. That is a significant jump in one year and the highest median home buyer age that has been seen in the real estate market.

These older, richer consumers contributed to a record number of cash buyers in the market. Cash transactions accounted for 26%⬆️of real estate transactions in 2024. While first time homebuyers transactions ended up being only 24%⬇️of transactions last year, a record low. Another all-time record high was the number of multigenerational home purchases which landed at 17%⬆️. 

On top of that, 2024 was a year of all-time low inventory. Many potential sellers who would normally be looking to make a move, were reluctant to sell after refinancing their mortgages during the record low interest rates in 2020 and 2021. The jolt of going from 2.5% interest to 8% kept many people from selling their homes, and consequently, from purchasing their next home. It also kept potential first time home buyers renting, waiting for interest rates to decline. Meanwhile, rents continued to rise and inflation made it hard for these potential buyers to set money aside in preparation for a down payment when they were ready to purchase.

In 2023 there were 4.1 million home sales transactions, which was the lowest number of sales in close to 30 years. Final 2024 transaction numbers are not in yet, but the results are projected to be very close to 2023. The number of transactions in the next couple of years is forecasted to be around 5-6 million transactions. As more builders are getting new homes on the market (trend that was seen in the last half of 2024), new home sales are expected to grow in 2025. However, the biggest influx to the market is forecasted to be people selling due life circumstances. Family growth, new jobs, retirement, death, or divorce will eventually contribute to people moving, forcing restrained sellers to release into the market. This factor combined with interest rates projected to hover around 6%, lead to the belief that the market is poised to be fluid and steady. 

Experts forecast these changes could bring new opportunities for both buyers and sellers. For sellers, the market shift in 2025 could be the moment they’ve been waiting for. Life circumstances will likely push many homeowners to sell, creating a ripple effect of increased activity. For buyers, this activity could be the opportunity they were waiting for last year. With more inventory—including newly built homes—and stabilized transaction numbers, buyers may find less competition and more favorable options. 

Here’s to a new year and new opportunities! 

Sources: Brian Buffini’s Bold Predictions 2024 Real Estate Market Outlook, featuring Dr. Lawrence Yun-NAR Chief Economist

https://blog.buffini.com/brian-buffinis-bold-predictions-for-2024-lower-rates-to-fuel-a-pent-up-demand/