Lisa Mailhot | January 3, 2025
Buyers
As temperatures dropped over the festive season, so did activity in the real estate market. December 2024 saw the most dramatic seasonal slowdown in two years. According to Realtor.com® senior economist Ralph McLaughlin,
"Homes spent 70 days on the market, the slowest December in five years and the slowest month since January 2023" (Farberov, 2025).
The average home took nine days longer to sell than in December 2023. Inventory also plummeted 8.6% from November, marking the steepest decrease since early 2023. Mortgage rates played a significant role in this glacial pace, hitting 6.85% by late December and discouraging potential buyers from entering the market.
Elevated mortgage rates hovering in the high 6% range since October proved to be a major hurdle. Even with the median listing price declining to $402,502—a $15,000 dip year-over-year—buyers largely stayed put. Sellers also paused, with just 0.9% more homes listed compared to December 2023, a mere 2% dip from November.
However, there’s a glimmer of hope. According to Realtor.com’s 2025 forecast, mortgage rates are expected to average 6.3% for the year, possibly ending at 6.2%. This slight relief may chip away at the “lock-in” effect keeping homeowners from listing properties.
The median home price slid 1.8% year-over-year, but there’s more to the story. McLaughlin notes,
"When a change in the inventory mix toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year."(Farberov, 2025).
Essentially, while prices dipped, homes offered less square footage, reflecting a shift in inventory.
Inventory trends also painted a mixed picture. Active listings grew 22% year-over-year but fell dramatically from November levels. The South led the charge, with a 26.7% surge in active listings, while the West saw a 23.7% jump. Yet, housing stock in the Midwest and Northeast lagged significantly, trailing pre-pandemic levels.
December’s market slowdown offered both challenges and opportunities for buyers. A smaller pool of fresh listings meant fewer options, but buyers had less competition and more time to make decisions. As Hannah Jones, Realtor.com’s senior economic research analyst, puts it:
“Winter may be a great time to buy for some buyers who are looking for more seller flexibility and can find a suitable home on the market. However, spring may be better for buyers who cannot find what they are looking for now and are willing to pay a bit more for their ‘perfect’ home” (Farberov, 2025).
The slowdown in December's real estate market emphasizes the need for careful planning and well-timed actions for both buyers and sellers. potential rate reductions and inventory shifts expected in 2025, staying informed and planning your next move is crucial. If you’re considering buying or selling a home, let’s connect and turn your real estate goals into reality.
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