Market Highlights

If you’re planning to sell, now might be a great time. More REALTORS® are seeing buyers return to the market, with expectations of increased buyer traffic in the next three months. Likewise, sellers are stepping up, with the highest level of seller activity since Spring 2023.

The market remains competitive: about 1 in 6 homes are selling above the asking price, signaling strong demand. Sellers are receiving an average of two offers per home, which means buyers need to act quickly. While over half of homes sold in under a month, this is slightly slower than a year ago, giving buyers a bit more breathing room. Additionally, nearly a third of transactions are all-cash offers, allowing for faster and smoother closings.

Imagine you’re a buyer looking for your first home. You find the perfect property but discover two other offers already on the table. With a competitive strategy, like submitting a clean offer or waiving contingencies, you could still secure your dream home.

First-Time Buyers Are Gaining Momentum

First-time buyers are making their mark, comprising nearly one-third of the market. This is great news for those looking to break into homeownership, as it shows more opportunities are emerging. For example, if you’re renting and worried about affordability, this trend indicates that other first-time buyers are successfully navigating the market—and you can too.

Virtual Home Shopping: Convenience Meets Reality

Technology is changing how homes are bought and sold. While fewer buyers are purchasing homes based solely on virtual tours compared to last year, a significant 5% are still doing so. This means sellers who invest in high-quality virtual tours can stand out and attract these tech-savvy buyers.

Imagine a scenario where you’re relocating across the country and can’t visit homes in person. A detailed virtual tour could give you the confidence to make an offer without ever stepping foot inside the property.

Shifting Trends in Contract Activity

Buyers are becoming more cautious with contingencies. Waiving inspection or appraisal requirements is less common than in previous months, giving buyers more peace of mind. For instance, if you’re buying a home, this trend could mean more time to carefully evaluate the property without feeling pressured to skip crucial steps.

Location Preferences Are Evolving

Suburban, small-town, and rural properties are in high demand. An impressive 85% of buyers are opting for these locations, moving away from city centers. If you’re a seller in one of these areas, this could mean more interest and potentially higher offers.

Picture a family seeking more space and affordability. They may leave a bustling city apartment for a suburban home with a yard, aligning with this growing trend.

Contract Challenges: Delays and Terminations

Despite the optimism, some challenges persist. Contract delays affected 16% of transactions, with appraisal issues being a common reason. Sellers should be prepared for possible hurdles during the process. For example, if your home is appraised below the agreed-upon price, it could delay closing or require renegotiation.

What This Means for Buyers and Sellers

For Buyers: Inventory is still limited, but with more sellers entering the market, your chances of finding the right home are improving. Consider exploring suburban or rural areas for better options and value.

For Sellers: Buyer demand remains strong. With homes receiving multiple offers and many selling quickly, this is a great time to list your property. Offering virtual tours can help attract remote buyers and stand out in a competitive market.

REALTORS® Outlook for 2025

The market is expected to remain dynamic as inventory challenges persist and buyer preferences shift. However, optimism is growing, and the trends suggest exciting opportunities for both buyers and sellers as the new year begins.