Welcome to the Homefront: Your Guide to Navigating the Real Estate Market

Prepared by Square Feet Appraisals in collaboration with Delaware Beaches Online

Data Source: Bright MLS 

Navigating the Uncertain Housing Market: Lessons from 2024, Insights for 2025

Welcome to our comprehensive six-part blog series exploring the dynamics of the 2024 housing market and what we can expect in 2025. This series will delve into key market trends, buyer and seller behaviors, potential wildcards, and emerging opportunities.

We’ll analyze data from the Bright MLS service area, providing valuable insights for both industry professionals and those interested in buying or selling a home. Whether you’re a seasoned real estate expert or just starting your journey, this series will equip you with the knowledge to navigate the uncertainties of the current market.

Welcome to the 2025 Housing Market: Your Guide to the Year Ahead

Hey there, future homebuyers and sellers! Ever felt like the real estate market is a giant puzzle you just can’t crack? We get it. Buying or selling a home can be intimidating, especially with all the news about rising interest rates, fluctuating prices, and bidding wars. It’s easy to get lost in the sea of information and feel overwhelmed.

That’s why we created this blog series – to be your trusted companion and guide in the exciting, sometimes confusing, world of real estate. Whether you’re dreaming of owning your first cozy apartment, looking to upgrade to a bigger house with a yard for the kids, or thinking about downsizing now that the nest is empty, understanding the market is absolutely key.

We’ll be here to help you every step of the way. We’ll break down the latest trends, the challenges you might face, and the exciting opportunities that await – all in a way that’s easy to understand, even if you’re not a real estate expert. No confusing jargon or complicated charts here, just clear, straightforward information to empower you on your real estate journey.

Think of us as your friendly neighborhood real estate advisors. We’ll cover everything from how interest rates work (and why they keep changing!) to what factors influence home prices in your area. We’ll also keep you ahead of the curve by looking at what’s expected to happen in the market in the coming months and years. So, whether you’re a seasoned homeowner or just dipping your toes into the real estate waters for the first time, you’ve come to the right place.

But before we dive into the exciting possibilities of 2025, let’s take a quick look back at the 2024 housing market and see what lessons we can learn.

Now, to get us started, let’s take a quick look back at the ups and downs of the 2024 housing market:

2024: A Year in Review for Housing

If we had to describe the 2024 housing market in one word, it would be “interesting!” It was a bit of a mixed bag, with some trends carrying over from the previous year and some new developments that kept everyone on their toes. Let’s dive into the key takeaways:

• Sales Activity: Overall, the number of homes sold in 2024 was slightly higher than in 2023, which might sound like good news. However, the pace of sales was still slower than what we consider “normal” based on historical trends. High mortgage rates made it more expensive to borrow money, rising home prices put a strain on affordability, and the limited number of homes for sale (low inventory) made it a challenging environment for buyers.
• Prices: Despite the somewhat slower sales activity, home prices in most areas continued their upward climb. This was great news for sellers, but it made things even tougher for buyers, especially those entering the market for the first time or those with tighter budgets.
• Competition: While the frenzy of the pandemic years had cooled down a bit, buyers still faced plenty of competition in many markets. It wasn’t uncommon for sellers to receive multiple offers on their properties, and homes often sold quickly, sometimes even above the asking price.
• Inventory: Perhaps the biggest challenge for buyers in 2024 was the persistent lack of inventory. Simply put, there weren’t enough homes available for sale to meet the demand. This limited the options for buyers, fueled competition, and contributed to the upward pressure on prices.

So, as you can see, 2024 was a year of contradictions. It wasn’t all doom and gloom, but it certainly had its share of challenges, particularly for those hoping to buy a home.