Real Estate Data Matters, But So Do the Stories Behind the Data

What does the new year hold in store for real estate? It’s safe to say that 2024 was one of the most challenging years in recent history. Unyielding interest rates, the NAR settlement, homeowner’s insurance issues, and a shifting market were all top of mind. We experienced increased pressure on prices, longer days on market, and in general, a rather sluggish and lackluster real estate market. Suffice it to say that both Buyers and Sellers (and their agents) found it difficult to navigate these new normals.

Optimism for the New Year

The good news is that the New Year brings renewed optimism! Yes, some of the challenges remain and interest rates are still hovering around 6.5% to 6.875%, but a housing crash is not on the horizon and interest rates should continue to decrease in 2025, albeit not greatly.

Supply and Demand

According to the Federal Loan Mortgage Corporation, home prices are expected to grow in 2025. If you are wondering why, it all boils down to supply and demand. Even though housing inventory is increasing, it is nowhere close to pre-COVID levels. While more inventory is definitely a good sign and signals a healthier market, there is still a lot of pent up demand and an overall housing shortfall. So, don’t  expect to see major price adjustments in most areas.

Regardless of the market, your decision to buy or sell real estate is not determined by external factors as much as it is by your own personal factors. Your needs, your desires, finances, and  timing play the biggest role in your housing decisions. Don’t let the past, current or future indicators keep you from making the housing decision that is right for you.

Bottom Line for 2025

Interest rates should continue to decrease in 2025. Inventory is likely to remain low. And, a housing market crash is not on the horizon. So, if you are financially ready to buy, don’t wait. And, if it is time for you to sell, sell.

One more thing: All real estate is local and broad generalizations are just that – broad in nature, and well, general. So, if you need to make real estate decisions, hire a REALTOR. Someone who knows your neighborhood – not just the data – intimately. When you know the story behind comparable sales and listings, it makes all the difference. Data is important, but the stories behind the data matter even more. So does the human touch. It’s the experienced agent who has their finger on the pulse of your market and can provide you with insight. Valuable insight.

When it comes to your real estate decisions, little details matter and can make a HUGE difference. So yes, look at the data, but more importantly, listen to the wise counsel of your local market expert who will know the details and the stories behind the data. Details and stories that will shed more light and illuminate your path forward.