MARCH 6, 2025, EDITION

Sales of pre-owned homes in January, grew year-over-year for the fourth straight month. Sales were down from December, but are 2% ahead of a year ago. Plus, inventories are up nearly 17% over a year ago.

The pending home sales index of signed contracts on pre-owned homes, slipped in January, but analysts noted it was “the coldest January in 25 years…so, expect greater sales activity in upcoming months.”

Weather could also explain the 10% drop in January new home sales, as the South saw record low temperatures and record high snowfalls. However, the median sale price is down 3% and supply is up over 270% since 2022.

Builders completed more new homes in January—nearly 10% more than a year ago. Single-family home starts are up almost 20%, and permits up 24% compared to the five-year average during the pandemic.

Home price gains are moderating. In December, the closely followed Case-Shiller home price index was up just a tick from November. Compared to a year ago, prices are up a modest 3.9%.

Realtor.com noted falling prices, a rise in new listings and inventory, and homes spending more time on the market than a year ago. This gives buyers more time to find the right home, perhaps at a reduced price.

DID YOU KNOW?… A recent Realtor.com survey found that three quarters of respondents see homeownership as part of the American dream, and two thirds feel owning a home is an achievable life goal.

Freddie Mac’s weekly Primary Mortgage Market Survey reported the national average 30-year fixed mortgage continued to drop, hitting its lowest level in more than two months. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. 

Home prices are rising at a more normal rate, making a home purchase more attainable for many buyers. In addition, that steady price growth means the home you purchase now is likely to increase in value over the long term, as homes have historically done.

Many sellers are also potential buyers, so they’re trying to figure out when will be the perfect time to act. But the fact is, there is no perfect time to move—and the pros and cons vary from market to market. Please lean on our experience and lender relationships to give you the guidance you need to make the right decision.