Market Report | January 2025

January Market Report

In January, market perception shifted, with more buyers remaining hopeful for friendlier conditions, though the market itself showed little change. Mortgage rates remained stable, and price growth stabilized. New inventory increased significantly from December, with both detached and attached markets up over 100% from the previous month and higher than January 2024. Active inventory rose 57.83% year-over-year, providing buyers with more options as spring approaches. However, the time it takes to sell homes increased, with the median days on the MLS up 28.57% from last year.

Inventory is highest in the $500K-$749K range for detached homes and under $500K for attached homes. These price points are more sensitive to interest rates, while luxury homes over $2 million have much higher inventory. Buyer activity remained similar to January 2024, with a slight decrease in properties under contract and a slight increase in closed sales. Despite higher mortgage rates, the median sale price has steadily increased over the years, with a rise of 81.38% from January 2016 to January 2025.

Sellers need to price their homes realistically, as overpricing can result in longer market times and price reductions. With more inventory and less competition, buyers are in a good position to make moves, and now is an ideal time for serious homeownership consideration. Now is the time to take action—whether you’re buying or selling, being strategic and informed can help you make the most of the current market opportunities and an Invalesco advisor is here to help!