The State of the Market: Low Inventory and Steady Buyer Demand
As we close out 2024, low inventory continues to be a key challenge in our real estate market. Fewer homes are being listed, and those that are available are seeing steady buyer demand. However, the number of offers per property has decreased slightly, which could be due to seasonal changes or even the upcoming election cycle.
For buyers, this shift means you’re likely to face less competition than in previous years. While home prices are still high, you might find that you have a little more negotiating power as some buyers have temporarily stepped back from the market due to high interest rates. If you’re ready to buy, there are opportunities out there, but it’s essential to act strategically.
Interest Rates: Fluctuations and Buyer Opportunities
Interest rates have been a significant topic in 2024, and they continue to fluctuate. Despite this, we’re still seeing buyers making moves. While high rates remain a concern for many, they’re not keeping all buyers from jumping into the market. In fact, sellers are adjusting to these changes, making the necessary price adjustments and offering concessions to attract buyers.
For buyers, the good news is that while interest rates may still feel high, there are still opportunities to lock in a deal. If you’re not quite ready to buy yet, don’t worry! It’s never too early to start planning. I always recommend meeting with a lender early on to discuss your budget and get pre-approved for a mortgage. This can help you set realistic expectations and avoid the stress of rushed decisions when you do find your dream home.
Sellers: Pricing is Key in a Shifting Market
For sellers, the market is still very much in your favor, but pricing is more critical than ever. Even though we’re seeing strong buyer demand, buyers are more cautious, especially when it comes to making offers. You need to be strategic with your listing price.
Homes that are well-prepared, staged well, and in great condition are still getting a lot of attention across all price points. The homes that show well and have fewer objections tend to command strong interest, which could mean multiple offers and a quicker sale. However, the key to attracting buyers is pricing your home competitively from the start.
Looking Ahead to 2025: More Sales and Continued Price Appreciation
As we look to 2025, we expect the market to shift in a few ways:
- Home prices are expected to continue appreciating, though at a more moderate pace. As interest rates stabilize, we anticipate more buyers entering the market—especially those who have been sitting on the sidelines for most of 2024 due to high borrowing costs.
- Sellers will also see less hesitancy in listing their homes as they become less “locked in” by low rates. Many homeowners who were holding off on selling due to their favorable mortgage rates will likely start considering a move as the market stabilizes.
In 2025, the real estate landscape is expected to be more dynamic. The combination of slightly more favorable interest rates and continued price appreciation will likely lead to more sales, making it an exciting year for both buyers and sellers.
How Do These Trends Affect You?
So, what does all of this mean for you? Whether you’re thinking of buying, selling, or just exploring your options, it’s important to understand how these trends will influence your next move. If you need guidance on navigating the market or making a plan for 2025, I’m here to help. My job is to ensure that your goals are met, whether that means finding the perfect home or getting top dollar for your property.
I’m always happy to help you make informed decisions based on the current market conditions. Don’t hesitate to reach out—no question is too small!
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Thanks for reading, and I look forward to helping you with your real estate goals in 2025!
