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.
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