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Crystal ball reading for 2025

By
Real Estate Agent with Realty ONE Group Advocates 484-237-2055 PA License - AB067198

What does 2025 hold for the real estate market?

As we start 2025, we look back on 2024 and see sales of about 4.15 million homes as of November 2024. December home sales are released towards the end of January. This is still massively down from 2021 when sales were 6.12 million homes. Estimates for 2025 are for sales of about 4.4 million homes as home buyers adjust and begin accepting that rates are not returning to the 2-3% range and will most likely remain in the 6-7% range for the foreseeable future.

Locally, we have seen a lack of inventory of homes for sale, although towards the end of 2024 homes for sale rose giving buyers more choice, days on market also rose slightly. However there are plenty of buyers looking for homes often competing with cash buyers like builders along the Main Line and surrounding areas who are snapping up $700-800,000 homes for projects selling in the $2-3 million range.

Throughout the local real estate market we have seen prices rise due to this lack of inventory, which is substantially lower than 2019, every year since we have seen decreases in the number of homes for sale and this has driven prices up as demand has not slacked off.

Many buyers have resorted to buying new construction homes from builders in locations which require a longer commute as this allows them not to compete in multiple bid situations on resales along and around the Main Line and local counties where land is at a premium.

Many homeowners are locked in with low interest rates and have no desire to give these up, so choose options to extend and build additions to existing homes where possible rather than sell and move.

Along the Main Line where an average middle range home had a sales price of $ 600-800,000 most homes being listed are between $1.5 and close to $2 million. Many homeowners are sitting on large amounts of equity with the rise in home prices.

For those considering selling, it is still important to properly prepare homes for sale as a large majority of buyers in a recent survey said they wanted move in ready homes. It is well worth making sure repairs are made in advance and with options to pay at settlement, such as Curbio, there is no reason to not make these repairs or modernize dated kitchens and bathrooms.

If you are thinking of selling soon and want advice on what your home might be worth, please reach out. This past year we have had much success for our buyers getting them the homes they wanted, so do not lose heart if you do need to buy a home there are options among the homes out there for sale.

Posted by

Nick Vandekar
Nick is a Tredyffrin Easttown Residential and Commercial REALTOR selling The Main Line, Chester, Delaware and Montgomery Counties.

Giving you the confidence to make
the right decisions.

225 W Uwchlan Ave
Downingtown , PA 19335
Office 484-237-2055
SellingTheMainLine.com
Mobile: (610) 203-4543 [call or text me]
Email Me

 

My Blog

   

If you are buying or selling on or around
Tredyffrin Easttown or along the Main Line, 
I can help you, contact me.

Comments(22)

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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Great post, Nick. And I couldn't have said it better than my friend Wayne Martin 

Jan 17, 2025 04:24 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Having a service where repairs and such can be paid at the settlement is a very good thing for sellers!

Jan 17, 2025 04:26 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Nick, The 2025 real estate market is poised to require flexibility and innovation from industry professionals, and my crystal ball says you're the one in The Main Line and Chester County to accomplish this!

Jan 17, 2025 04:32 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Thanks for sharing, make it a great Friday and enjoy your

weekend!

Bill Salvatore, Realtor- Arizona Elite Properties

Jan 17, 2025 04:48 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nick,

I'm on the same with your thinking! I couldn't have written a better post..well done my friend! 

Jan 17, 2025 04:51 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Quality market report! We are seeing new construction companies buy down interest rates. As a result, new homes are selling quicker. 

Jan 17, 2025 05:06 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Sham Reddy CRS thanks for stopping by and have a good weekend.

Wayne Martin you only get appreciation once you own a home, otherwise you are always playing catch-up.

Nina Hollander, Broker exactly.

Brian England I have not used it yet, but a couple of friends have and they said it was very beneficial.

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 thank you, I appreciate your confidence.

Jan 17, 2025 07:00 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Bill Salvatore - East Valley thank you, I intend to and hopefully my eagles will move forward this Sunday.

Dorie Dillard Austin TX thank you, that is a great compliment and much appreciated.

Doug Rogers I have seen that a little bit here as well, maybe the larger national companies rather than the smaller independent builders.

Jan 17, 2025 07:02 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Nick- very thorough, easy to read and informative!!! Whatever the market in your area is, some things don't change...such as making sure your home is prepared to sell and choosing the best local agent you can find!!! That would be YOU. 

Jan 17, 2025 07:13 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

I loved Wayne Martin  comment, needless to say all those who made predictions in my market need to dust off their Chrystal balls after the Pacific  Palisades Fires, I am sure they will need to revisit their predictions, Endre

Jan 17, 2025 09:46 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Kathy Streib thank you.

Endre Barath, Jr. I am sure a lot of people will be revisiting their predictions in your area.

Jan 18, 2025 09:29 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

Very thorough and interesting analysis, Nick...enjoyable read!!

Jan 18, 2025 07:29 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

There’s nothing I want more than happy healthy wondrous fun new year for all of us.

Jan 18, 2025 11:14 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

I agree with Endre Barath, Jr. as this event will cause a massive shift in the real estate market and I believe will affect us all.

Jan 19, 2025 06:14 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Paddy Deighan MBA JD PhD thank you for the compliment.

Laura Cerrano that is a great wish, I hope that it comes to pass.

Dr. Paula McDonald we will have to wait and see, but climate change is going to affect real estate at some stage.

Jan 19, 2025 08:52 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

This is a good post,  Great information.  Thanks for sharing.

Jan 20, 2025 08:29 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Nick:

Excellent overview and summary of the housing market and thoughts about what lies ahead.

Locally we are likely to experience a number of market shifts given the LA fires. The rental market has already seen some significant shifts with the demand for rental housing.

Jeff

Jan 20, 2025 05:11 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Ginger Harper thank you for stopping by and commenting.

Jeff Dowler, CRS I am sure all the California markets are going to be affected for the foreseeable future.

Jan 21, 2025 06:06 AM
Scott Schulte
Scott Schulte LLC - Phoenix, AZ

🏡 Sellers who are bold and prepare their homes well will have the best chance for success! 🔑

Jan 23, 2025 03:47 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Scott Schulte preparation is always a winner in real estate

Jan 24, 2025 06:14 AM