January 2025 Housing Market Update: Sales Dip, Prices Rise
National Market Update Krista Freshour February 26, 2025
National Market Update Krista Freshour February 26, 2025
The latest report from the National Association of REALTORS® (NAR) reveals a mixed start to 2025 for the housing market. Existing-home sales declined 4.9% from December, settling at a seasonally adjusted annual rate of 4.08 million in January. Despite the monthly decline, sales saw a 2% increase compared to January 2024.
One of the biggest hurdles for buyers remains housing affordability. Mortgage rates have hovered around 6.85%, while home prices continue to climb. The median existing-home price rose to $396,900 in January, marking a 4.8% year-over-year increase.
Key Market Highlights:
Inventory Growth: Housing inventory increased 3.5% from December and 16.8% from last year, reaching 1.18 million units.
Days on Market: Homes stayed on the market for an average of 41 days in January, up from 35 days in December.
First-Time Buyers: Only 28% of buyers were purchasing their first home, down from 31% in December and consistent with last year.
Cash Buyers: Cash transactions accounted for 29% of all sales, showing continued investor activity in the market.
Regional Breakdown:
Northeast: Sales declined 5.7% from December but increased 4.2% year-over-year. Median price: $475,400 (+9.5%).
Midwest: Sales remained unchanged month-over-month but rose 5.3% from January 2024. Median price: $290,400 (+7.2%).
South: Sales fell 6.2% from December and remained flat year-over-year. Median price: $356,300 (+3.5%).
West: Sales dropped 7.4% from December but increased 1.4% year-over-year. Median price: $614,200 (+7.4%).
What This Means for Buyers & Sellers: Buyers may see more opportunities with rising inventory, but affordability remains a challenge due to steady mortgage rates and increasing home prices. Sellers continue to benefit from strong demand, though proper pricing will be key as market conditions shift.
Whether you're looking to buy or sell, staying informed is essential.
Need expert guidance in today’s market? Let's connect!
Krista Freshour
Realtor
865-776-9608
Information provided by National Association of Realtors
Stay up to date on the latest real estate trends.
National Market Update
Explore the latest national real estate trends, including home prices, buyer activity, and mortgage rate impacts across all regions.
National Market Update
Explore the latest national real estate trends, including home prices, buyer activity, and mortgage rate impacts across all regions.
Explore East Tennessee
Explore the Best Summer Activities in East Tennessee — From Tubing to Music Festivals and Scenic Hikes
National Market Update
Explore the latest national real estate trends, including home prices, buyer activity, and mortgage rate impacts across all regions.
Explore East Tennessee
What Buyers and Sellers Should Know
Explore East Tennessee
Celebrate the season with fresh air, local events, and unforgettable outdoor adventures in East Tennessee
National Market Update
February Brings Momentum: Rising Sales, Growing Inventory, and Steady Prices in the U.S. Housing Market
National Market Update
Housing Market Sees Sales Decline But Prices Continue to Climb
National Market Update
2025 Housing Market Outlook & Knoxville’s Hot Spot Status
Whether you're looking to buy, sell, or invest, her expertise and resources are here to help you achieve your goals. Connect with her today and discover how Krista can support you!
