December 2024 Market Update – A Few Surprises, but on Track!

New Listings

📉 Down 15% YOY – As anticipated, the holiday season brought a sharp decline in new listings, steeper than usual. This isn’t alarming, but it’s definitely notable. Expect a similar trend through December before the market wakes up in January.

Chart: New Listings YoY
Illustrates the steep seasonal drop in December, with comparisons to previous years.

Available Listings

📊 Trending Down, but Up from Last Year – Inventory dropped by 200 listings in the past two months, reflecting sellers pulling homes off the market for the holidays. However, we’re still 20% higher than this time last year, signaling gradual improvement.

🛠️ What This Means for Us: Sellers are waiting, and the market favors homes that are well-prepped and marketed.

Chart: Available Listings Trend
A seasonal dip with YoY gains showing a positive long-term trajectory.

Days on Market (DOM)

⏱️ Median: 17 Days – No major changes here, which is surprising! Homes that are well-marketed and priced competitively are still moving fast.

⚠️ Challenge for Sellers: Homes that don’t look appealing or are overpriced will linger longer and likely go unsold.

Chart: Median Days on Market
A flat trendline over the past months with a clear separation between "hot" and stagnant homes.

Price Trends

💰 Flat, Ending the Year Up 5% – The price growth was right on target, with a mid-year peak and a tapering off through the winter. Surprisingly, prices have held up better than expected, signaling a robust market heading into 2025.

🔮 Prediction: Expect prices to rise early in the new year, potentially outpacing previous forecasts.

Chart: Price Trends 2024
A bell curve for the year, showing stability in Q4.

Interest Rates

📈 At 6.81% – Rates remain steady from last month. While buyers hoped for drops, a sharp decline isn’t on the immediate horizon.

Hot Take on Rates for 2025:

1. Rates could fall to the 5% range within the next two years.
2. The decline will likely be slow and steady.

💡 Advice: Focus on finding the right house and payment rather than waiting for "perfect" rates. Timing the market often leads to missed opportunities.

Chart: Mortgage Rate Trend
A plateau at 6.81%, with room for gradual decline in the coming years.

Summary: Setting the Stage for 2025

📌 Key Takeaways for Clients:

• Buyers: Get ready for rising prices early in the year. Focus on affordability and locking in payments rather than chasing rates.
• Sellers: Maximize your equity by prepping your home for the market now to take advantage of early-year demand.

2025 is shaping up to be dynamic—staying informed and ahead will make all the difference!