Real Estate Market Update: February 2025
The new year is here, and the real estate market remains strong! With home prices rising and inventory still on the lower side, it's a great time to buy or sell. Let’s break down how the market performed in January compared to December and what it means for you.
Single-Family Homes
December 2024 Average Purchase Price: $598,837
January 2025 Average Purchase Price: $607,775
Price Increase: 8.7%
Months Supply: 1.9 months (still a seller’s market)
Single-family home prices saw a solid increase of nearly 9% in just one month. This means sellers can benefit from strong pricing and steady demand. At the same time, buyers who enter the market now can secure a home before prices rise even further in the spring. Acting now allows buyers to take advantage of current inventory before competition picks up.
Condos
December 2024 Average Purchase Price: $482,459
January 2025 Average Purchase Price: $486,191
Price Increase: 6.5%
Months Supply: 2.4 months (still favoring sellers)
Condos also saw price growth, rising by nearly 6.5% month-over-month. Sellers can feel confident that demand remains steady, while buyers still have opportunities to purchase before prices increase further in the coming months. With interest rates expected to shift, getting into the market now could work in both parties' favor.
Market Trends & Conditions
Average Days on Market: 44 days
Percentage of List Price Received: 99.3%
Homes are selling in just 44 days on average, with sellers receiving close to full asking price. This is a great sign for sellers looking for a quick and successful sale. Buyers, on the other hand, should be ready to act fast when they find the right home, as properties are moving efficiently.
Why It’s a Good Time for Both Buyers & Sellers
For Sellers:
If you're thinking about selling, now is an excellent time. Home values are rising, and buyers are eager to secure a home before rates and prices climb further. Listing now, before the spring market heats up, can give you a strong position and attract motivated buyers.
For Buyers:
While prices are increasing, buying now can help you avoid even steeper costs later in the year. Entering the market before the spring rush allows buyers to find the right home without as much pressure from additional buyers. Plus, with interest rates expected to decrease, locking in a home now could be a smart financial move.
Interest Rates & Market Outlook
Interest rates are projected to decrease again, which will benefit both buyers and sellers. Lower rates can improve affordability for buyers and, in turn, drive more activity in the market. This increased demand helps sellers achieve strong sale prices. No matter which side of the market you’re on, this is a great time to make a move.
Final Thoughts
The current real estate market presents opportunities for both buyers and sellers. If you’re looking to sell, you can take advantage of rising home prices and eager buyers. If you’re looking to buy, entering the market now could save you money before prices rise further. No matter your situation, having a solid strategy is key. Let’s chat about your goals and create a plan that works best for you!