2024 Real Estate Year in Review
In 2024, the U.S. housing market saw a shift, with existing home sales reaching 4.06 million. While the number of homes sold was lower than in recent years, this presented unique opportunities for buyers and sellers to navigate a changing market.
Key Challenges
Fewer transactions this year were largely due to higher mortgage rates, which stayed between 6% and 8%, along with home prices remaining high, making it harder for many buyers to afford a home.
1. Declining Number of Home Sales:
The U.S. housing market experienced a notable shift, with sales volumes reaching their lowest levels since 1995. This adjustment underscores opportunities for innovation and creative solutions to address affordability challenges, as buyers and sellers navigate a market shaped by higher mortgage rates and limited inventory.
2. Record-High Median Prices:
Despite fewer transactions nationwide, the median existing-home sales price reached $407,500, a record high! Low housing supply combined with sustained buyer demand in key markets nationally helped push prices upward, even as the overall market cooled.
3. Impact of Rising Mortgage Rates:
Mortgage rates averaged between 6% and 8% throughout 2024, challenging affordability for many buyers. However, this shift encouraged a more deliberate and thoughtful approach to homebuying. While inflationary pressures and economic uncertainty made some first-time buyers more cautious, they also created opportunities for savvy investors to strategize and adjust their plans in a dynamic market.
The Big Question
Will 2025 favor buyers or sellers?
The Bottom Line
Real estate is the best long-term investment.
Two-thirds of Americans reside in owner-occupied homes.
New single-family home sales, which rose by 2.5% compared to 2023, totaling 683,000 units.
If you can buy, do so.
If you can sell, do so.
If you can invest, do so.
That’s the message.
(Source: National Association of Realtors, Freddie Mac, U.S. Census Bureau)