Gains in Home Sales Offer Hopeful Sign for 2025

According to the National Association of REALTORS®, the housing market is heating up! Existing-home sales surged 9.3% year-over-year in December, marking the largest annual increase in more than three years. Sales also rose 2.2% month-over-month, signaling renewed confidence and fresh opportunities. After a challenging 2024, this rebound offers hope for a stronger market ahead.

Home Prices Hit Record Highs

Despite last year’s slowdown, home prices have remained strong. The median existing-home price rose 6% year-over-year to $407,500 in December, setting a new record. Many homeowners are seeing their equity grow, even as affordability remains a challenge for buyers.

More Listings, More Competition

Housing inventory is on the rise, giving buyers more choices but creating added competition for sellers. Unsold listings increased 16% compared to a year ago, with the supply now at 3.3 months at the current sales pace. Additionally, homebuilders are ramping up single-family construction, further boosting available inventory.

Mortgage Rates: A Key Market Driver

The 30-year fixed-rate mortgage dipped slightly to 6.96% after briefly exceeding 7%, according to Freddie Mac. Higher rates have pressured affordability, slowing buyer demand at times, but recent declines could encourage more activity in the coming months.

Regional Market Trends

Sales improved in most major U.S. regions, with the Northeast leading the way. The Midwest was the only region to see a slight decline. However, both sales and home prices increased year-over-year in all four regions, showing resilience in the face of economic shifts.

With sales gaining momentum and inventory expanding, buyers and sellers alike should watch these trends closely. The 2025 housing market may hold new opportunities for those ready to act.

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Source: nar.realtor

0001Todd Wiley - Print © Bowerbird Photography 2016
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Todd Wiley

“What I’ve loved about having Todd as a realtor is that it’s not just about the current transaction, but it’s about the partnership he’s cultivated with me over time.” Zack B., Buyer and Seller

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Kim Wiley

“Kim's knowledge and network eventuated in getting a great deal on a fantastic place. She is extremely well-liked and connected in the San Francisco market and brought a calm, reassuring energy to every step of the process. We can't thank her enough for helping make a dream come true for us.” —Kristen G., Buyer

Peter Lee
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Peter Lee

Peter is a bay area native and 23-year San Francisco resident with a passion for client service, and attention to detail. He is a consummate professional and aims to make the home buying or selling process efficient as well as fun and enjoyable for all his clients.

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