According to fortune.com, 2024 has seen the highest new home sales in three years, with 683,000 homes sold. This increase comes despite persistently high mortgage rates, offering hope for buyers looking to enter the market.
Home values reached near-record highs in 2024, with the median price at $419,200. However, experts predict that 2025 could bring price relief as new construction ramps up, creating more inventory and putting downward pressure on prices for both new and existing homes.
In high-growth areas like the Sunbelt, demand for homes continues to outpace supply, potentially keeping prices higher. Meanwhile, mortgage rates hover around 7%, a challenge for buyers accustomed to the low rates of the pandemic era.
Sellers should be cautious about pricing too high in this environment, as homes that stay on the market for too long could face price reductions. Simple home improvements, like fresh paint or bathroom updates, could help sellers stand out.
For buyers, new homes may offer more value in 2025, with builders potentially offering incentives like mortgage rate buydowns and closing cost credits.
If you're looking to buy or sell in the current market, contact Benson Group for expert guidance and a strategy that works for you.
Source: fortune.com
Comments