As the dust settles on the 2024 Presidential Election, questions about the future of the economy and real estate market are top of mind. With challenges like high property values, rising insurance costs, increased costs for construction, and high mortgage rates, it’s easy to assume the real estate market is struggling. But what does the data really say? Let’s take a closer look.
Key Trends and Analysis
There’s More Inventory - But Is That Bad? Market Data shows that we have more housing inventory than we’ve had in quite some time, and closed sales have been on a downward trajectory since Summer of this year. That being said, the peaks and valleys of closed sales suggest that, while 2024’s market didn’t have the same highs as years prior, it also hasn’t had the same lows either. More homes closed in October 2024 than in 2023, and are down roughly 11% from closed sales in 2022. With consumer confidence beginning to rebound, this year’s trends could be laying the groundwork for a healthier, more stable market as we move into 2025.
Expectations Will Be Tempered Many homeowners have whiplash from the soaring home prices they witnessed in the midst of the COVID-era’s incredibly low interest rates and scarce inventory. Once interest rates began to rise, many homeowners latched on to the perceived values resulting from those conditions. Simultaneously, buyers have been bombarded with doom and gloom regarding the state of the real estate market, and expect to benefit from depressed conditions. The reality, of course, is somewhere between the two competing perspectives. We’re moving out of a unique period and transitioning into a market that’s finding its footing — one that’s beginning to reflect a return to normalcy.
Ok, But How Can I Time The Market? As any seasoned financial planner or stockbroker will tell you, timing the market is risky. Real estate is no exception. If you’re taking a speculative approach to real estate, your mileage may vary. The Federal Reserve has shared their outlook on further rate cuts, and there’s no guarantee that we will continue to see additional cuts in the near term. Making decisions based on current conditions will allow you to stay adaptable and well-prepared for personal or market changes that may arise down the road.
Bottom Line: What This Means for Buyers and Sellers For Buyers
As the housing market continues to evolve in 2025, the agents at Voyage Real Estate take great pride in staying informed. From understanding macroeconomic trends to tracking the local factors that shape the Pensacola real estate market, we’re dedicated to helping you — because when you succeed, so do we.
If you’re looking to buy: Stay calm and explore your options. There are a lot of homes on the market, and there are motivated sellers looking to make a deal. Now is a great time to find a win-win, opportunities that have been hard to come by in recent years. Let our team help you identify the best options available.
For Sellers: Don’t panic. Homes are still selling, albeit with increased competition. That’s why it’s essential to work with our experienced agents, who will ensure your home is priced right and stands out from the competition.
