2024 Real Estate Market Recap & 2025 Outlooks – Insights from Our Industry Leader

Once again at our annual KW conference, industry leaders shared valuable insights on the 2024 real estate market and what to expect in 2025. At The Hospitality Network Group at Keller Williams, we are dedicated to keeping our clients informed about the latest real estate trends so you can feel confident in your decisions and make the best choices for your future.



Our motto, "Client Focused. Performance Driven," isn’t just a slogan—it’s the foundation of how we do business. By staying ahead of market trends and understanding what lies ahead, we empower our clients to navigate the real estate landscape with confidence. Whether you're buying, selling, or investing, our commitment to your success drives us to provide the best guidance and insights.

As we reflect on 2024 and look forward to 2025, several key trends have emerged. Here’s what you need to know.

Home Prices and Inventory

Inventory increased slightly from 2023 but remains historically low, with only 3.7 months of supply compared to the 6 months needed for a balanced market. This shortage keeps demand high, pushing prices upward. If you're thinking about selling, now is a great time, especially before the spring rush. For buyers, inventory is slowly trending toward a balanced market, but competition remains strong. Be prepared to act fast and make sure you’re pre-approved to stay competitive.

Inflation

Inflation trended downward in 2024 and is expected to continue this trajectory in 2025, offering some relief to household budgets as costs become more manageable.

Mortgage Rates



Despite early predictions of declining mortgage rates, 2024 saw fluctuations, averaging 6.72%. While these rates feel high compared to recent lows, they are still below the historical average of 7.72%. In 2025, mortgage rates are expected to stabilize around 6.5%, providing more certainty and potential

relief for buyers facing affordability challenges.

Affordability

Affordability remained a concern in 2024, particularly for first-time homebuyers. With mortgage rates expected to stabilize and inventory levels still low, affordability challenges are likely to continue in 2025. First-time buyers should stay connected with a trusted lender and real estate professional, as programs are available to assist with down payments and closing costs.

What This Means for Buyers and Sellers

For Buyers:  With home prices continuing to appreciate and mortgage rates stabilizing, buying sooner rather than later could save you money. Staying pre-approved and ready to act quickly will be crucial in this competitive market.

For Sellers: Low inventory and high demand create a favorable environment for sellers. Listing now, especially before the spring rush, can maximize your profit potential.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey.

Contact us today to learn how we can help you achieve your real estate dreams.