By the Numbers

2024 was supposed to be the year that home sales bounced back, but rates, inflation (and buyers) had other plans.

It’s (still) all about home prices. Inventory is up, but much of it is stale, while flattening rents are keeping renters in their homes longer.

In a recent poll, 37% of remote workers said they would look for a new job if asked to come back to the office full time, citing the commute as a key factor.

“Buyers and sellers are gradually returning” but inventory could take a hit if homeowners stay locked in to their lower rates, experts say.

But there is still competition for homes, especially at lower price points, where first-time buyers cross paths with buyers on the investment side.

Existing home sales rebounded in November, pushing annual sales past the 4 million mark. A big jump in mortgage rates may quash momentum, however.

Look for just two cuts next year — half the number previously forecast — as the Federal Reserve predicts inflation will remain high.

Expect a “solid year for new home sales,” modest declines in mortgage rates, and a faster pace of wage growth, Fannie Mae and Veterans United experts predict.

One measure in the monthly index stood out, however, as builders responded with more optimism about where the market is headed in 2025.

While some trends have been consistent across the U.S., four states exemplify regional variability in 2025: Texas, California, Florida and Virginia.

After several atypical years, the real estate market is expected to settle into a new normal, with lower rates, more sales and improving affordability.

Panelists at NAR’s economic summit expect a better year overall, but pointed to various wildcards that could tug the market in different directions.

Rates have dropped for a third consecutive week, and buyers appear to be responding. But where rates go next is uncertain, and short-term volatility is likely.

Homeowners who bought in the early 2020s have lots of equity, and life events are motivating moves — even if they have to give up their low mortgage rates.

Fannie Mae’s latest purchase sentiment index is up more than 10 points in the past year, with a record share of consumers expecting mortgage rates to fall.

The good news is that an interest rate cut is still on the table as other signs point to a cooling labor market. The Fed will decide later this month.

Purchase applications and home tours are on the rise as rates drop to the lowest level in six weeks.

Federal policy changes could impact real estate in surprising ways, but economists are predicting fairly modest shifts in the new year.

So far, the pace of home sales has been slower this year, but the fall bump in pending sales could translate to a December rally — if mortgage rates drop.

Buyers found a bit of relief last month, leading to more sales activity — but rising inflation is lurking heading into the holidays.