2025 is fast approaching, and I believe that the best way to develop a foresight for the 2025 Real Estate market is by looking back at what happened this year, and using those statistics late spring as a metric for estimations for the future!

Now, Let’s take a look at key factors that affected the 2024 Real Estate Market!

A Year for Sellers and a Hopeful Market

Looking back at the statistics for this year, the first thing we can observe is that the inventory for this year has increased, and there are still more homes for sale. However, there was still an increased demand that shadowed the available supply. Sellers had a better time than buyers, and we can see that the numbers for inventory and sales are slowly approaching the numbers that we had prior to the pandemic. It is expected that we reach similar numbers as early as early 2025, and I am predicting that we will have a late Spring market peak. This Holiday was slower than last year, but some sellers are showing motivation right now with multiple price reductions.

An Increase in Prices with a lot of Challenges

Home prices were found to have increased by up to 3-4% nationwide, which suggests that there is a significant demand for homes even though the market seems to have experienced a lot of ups and downs. Here in Las Vegas, home prices were found to have increased by 6%, and are expected to maintain that trend by 2025.

Increased Mortgage Rates and Increased Demand

High demand for homes is often accompanied by a lot of interested buyers. This has been very interesting as the increase in demand occurred during a period of somewhat higher mortgage rates. The average mortgage rate for this year hovered between 6.25% to 7.25%, even when the Fed has lowered their rates. This does not spark immediate concern as buyers are still able to find ways to purchase their homes despite these rates. Sellers still were motivated to offer buyers incentives and contributions, allowing for necessary rate buydowns. While admittedly higher, these mortgage rates are within average when observed with a historical lens.

Adaptability and Flexibility, What did we learn?

Buyers and Sellers both have to be flexible and adaptable, especially now at a period of uncertainty. Buyers that wait for the right time might just not find that right time with unpredictable rates, and Sellers that remain rigid with their pricing might price themselves out of the market. Las Vegas has remained a Hot market, given that homes in the area typically remain in the market at a lower rate than that of the national average. Las Vegas homes are staying in the market for around 55+ days, compared to the national average of 62 days (according to data obtained from Realtor.com).

A Look Into 2025

2024 saw a national housing market that reached around 5 million sales, almost challenging the most recent peak of 6 million. While still ways away, it does provide a more hopeful outlook for the real estate scene in 2025. As previously discussed, housing demand is expected to remain relatively similar as with this year, with increases during periods of lower mortgage rates. However, these dips in mortgage rates are unpredictable and nearly impossible to time, so it is suggested that buyers remain proactive and jump on the best possible opportunity. However, don’t catch yourself unprepared by not being updated with the market. Make sure that when you enter the market, you are mentally and financially prepared to buy a home. Besides, you can always readjust your finances  & refinance to a lower rate down the line. 

I hope this helped you understand the Real Estate Market this 2024. I also hope that this has equipped you with the right information to look forward to the 2025 market with newfound excitement and vigor. I am looking forward to working with you into the new year.

Happy New Year!

Dulcie Crawford is a native Nevadan, born and raised in Las Vegas. Dulcie is a Community Expert & stays current with updates on market trends & market conditions.  A senior Realtor with Signature Real Estate Group, she has sold over 1,300 homes since 1998. You are assured an exceptional experience when buying or selling Real Estate with The Dulcie Crawford Group.