2025 Housing Market Forecast

At the year’s end, I thought it only appropriate to provide my predictions for our local housing market and what the New Year may bring.  To do this, it’s helpful to examine the trend lines from the past few years to understand how the market reached its current state to better predict where it’s headed.

RESALES:

At first glance, it has been remarkably good years for the Resales. Since pre-pandemic (2019), both Sales Prices and the average Price Per Square Foot skyrocketed.  And the average Days on Market plummeted. All incredible results. EXCEPT for the total number of home Sold, which barely increased in 6-years. Why?  Because you’ll note that the New Homes dominated the market and Sales increased by over 200%. Fifty times that of the Resales. So, the competition will remain just as fierce in 2025 with the New Homes continuing to control the market. And, Resales that don’t resemble the New? Well, they will be an even harder challenge to sell.

NEW HOMES:

The results are a totally different story for the New Homes. Again, at first glance, it appears the results were pretty lackluster with just a modest increase in Sales Price. EXCEPT the reason is that beginning in 2021, the New Home Builders quickly adjusted and began to build smaller homes, which resulted in a corresponding lower total Sales Price. Yet, both their Price Per Square Foot and profit increased significantly while the number of Sales skyrocketed and nearly tripled in volume. In short, the New Homes reacted to the market, and then dominated it. This is why they will continue to be formidable opponents for the Resales.

WHEN TO SELL?

This has been a very volatile market for the last couple of years. Sales velocity, Days on Market and Home Prices vary almost on a month-to-month basis. And, the Election results will have a significant impact too. In short, lots of changes to the market. So, if you would like a FREE market analysis to see what your home is worth, just reach out to us. We’d be pleased to help you. We’ll also provide insight about when is the best time FOR YOU to buy or sell.