As we enter the new year, I thought I would share my thoughts on the housing market for 2025 based on reporting from 2024.
Below are some statistics from the National Association of Realtors Housing report that tell the story of 2024.
- The first-time homebuyer age increased from age 32 in 2023 to 38 Years old in 2024. The medium age for home buyers was 49 in 2023 and is now 56 years old.
- 24% of all sales were first-time home buyers, typically this is usually around a third of all transactions.
- 73% of all buyers did not have a child under the age of 18 in their home.
- 26% of all transactions were cash.
What these stats show is that we have fewer younger generations entering the housing market as first-time buyers due to affordability are a result of the increased interest rates.
The first quarter of 2025 should be strong as our November and December numbers of transactions are up compared to last year. I do not see a big drop in rates as the Fed is still trying to get a hold of the inflation issue thus resulting in stable rates for the first quarter.
Many people would like to move, but since they have such an inexpensive mortgage payment with low interest rates, they will stay put for now, which will affect our housing supply for years to come.
If you’re looking for some more insight into a possible move or purchase in 2025, please feel free to reach out.
