A Look Back At The 2024 Real Estate Market and What To Expect in 2025

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A Look Back At The 2024 Real Estate Market And What To Expect in 2025

2024 was a doozy in the real estate world and honestly in general. But, cheers to making it through and to 2025! If you’re looking to buy or sell a home this year, or are just curious to see some of the numbers from the past year and what 2025 might look like in terms of real estate, then you’ve come to the right place.

What can we learn from 2024?

First things first, let’s address the numbers. Here’s what we found at the end of 2024.

1) Home prices had just under a 10% increase in West Michigan in comparison to 2023. (statistics taken from GRAR)

2) Only 2.5% of homes in the US changed hands in the first 8 months

3) As of the December of 2024 the avg 30-year-fixed mortgage rate was 6.85%

4) A trend we saw with homeownership was that it was less affordable due to high mortgage rates, and so many potential buyers were opting to rent, driving up demand in the rental market.

5) Interest rates were all over the place (CoreLogic)

Here's what people are predicting for 2025!

We took a deep dive into what different people were saying we should expect to see in 2025 (including the National Association of Realtors) and here’s what we came up with.

1) The market will get busier as mortgage rates trend down

2) Home prices will increase (but not as rapidly as they have been)

3) NAR predicts that mortgage rates will stabilize around 6%

4) NAR projects 4.5 million existing home sales and a $410,700 median existing-home price in 2025.

5) NAR predicts that new home sales will jump by 11%

Closing thoughts

We’re heading into 2025 with a fresh start and new goals, and you should to!

Our #1 tip is if you are hoping to buy or sell a home this year, the first thing you need to do is get in touch with a real estate agent and get pre-approved!

Want to get started? Contact us today and we would love to connect you with one of our dedicated local experts!