2024 is in the books—and from a real estate standpoint, it was quite a year! We navigated regulatory changes, a rising interest rate environment, and most importantly, a continued inventory squeeze that kept home values elevated for the most part. You will see this reflected within these pages in terms of fewer deals and higher average sale prices throughout many of our local municipalities.
During the last downturn, post-Great Recession, fewer deals translated into lower home values—but in this market cycle, the decreased number of unit sales is supply side-based and not due to a lack of demand. (Back in 2009-2012, it was the opposite.)
Yes, interest rate-sensitive buyers have had to recalibrate their target price points based on elevated rates, higher property prices, and now rising insurance costs, too. That said, demand is still outpacing supply. There are signs that this imbalance is starting to level off, as inventory is beginning to rise and the number of days a property stays on the market is increasing in several areas as well.
Look for another interesting year to come in 2025. Early predictions are that interest rates will settle into their current range, which will present a continued challenge for buyers. The question is, with so many property owners locked into lower rates in the 3% to 5% range, is this the year they will want to realize their significantly increased equity by cashing out of their properties? Time will tell!
As always, thank you for your engagement. There are opportunities to be had out there for both buyers and sellers, and we’re here to help. Please contact your favorite Callaway Henderson Sotheby’s International Realty agent and let’s get started!
