January 2025 RE/MAX National Housing Report Highlights Market Trends and Changes

Overview of January 2025 Housing Market

The RE/MAX National Housing Report for January 2025 shows an impressive rise in new property listings, with a striking 53.7% increase compared to December 2024. This surge indicates a growing interest in the housing market, which is crucial considering the seasonal slowdown around winter. Interestingly, the number of new listings has remained almost stable when compared to the same period last year, with only a slight decline of 0.1%. Furthermore, the inventory of available homes in January has increased by 5.0% since December and stands 30.9% higher than the previous year.

Price Trends

In this busy landscape, the median sales price has observed a slight drop to $422,000—a decrease of 1.8% relative to December. However, this figure reflects a year-over-year increase of 5.3%, amounting to approximately $21,000 more than January 2024. Erik Carlson, CEO of RE/MAX Holdings, noted, "January typically presents a quieter market due to winter weather and holiday schedules, yet this year saw significant activity, with home sales outpacing those of the previous year by 6%."

Sales Dynamics

The volume of home sales decreased by 24.3% from December, but year-over-year comparisons reveal a promising trend—with a 6.0% rise from January last year. Buyers who required urgent relocations took advantage of the larger inventory available, while sellers encountered motivated buyers keen on purchasing homes. In Burlington, Vermont, active inventory surged by an incredible 64.1%, marking one of the largest increases among surveyed areas yet also featuring one of the lowest overall numbers of active listings, only 320 homes.

Rich Gardner, the broker and owner of RE/MAX North Professionals in Colchester, Vermont, illustrated this point, stating, “Though inventory has risen, it is not evenly categorized. Availability varies among price ranges and home types; for instance, mid-range single-family homes remain scarce.” He emphasized the ongoing competition, where buyers must act promptly despite increased choices.

Key Market Metrics

- Buyer Behavior: In January, buyers paid an average of 98% of the asking price, consistent with rates from both December 2024 and January 2024. This indicates a stable negotiation environment.
- Market Duration: The average days on market extended to 55 days—two days longer than the previous month and nine days longer than last year.
- Months Supply of Inventory: The supply stood at 2.8 months, decreased slightly from 3.0 months in December but showing an increase from 2.1 last year, signaling a tightening market.

Highlighted Markets

Among the various metropolitan areas analyzed, Seattle demonstrated the highest year-over-year growth in new listings at +32.9%, followed by Anchorage, AK (+29.0%) and Des Moines, IA (+28.4%). In contrast, Bozeman, MT, and Milwaukee, WI, saw notable decreases of -31.9% and -29.3%, respectively, in their new listings.

The report also noted that Coeur d'Alene, ID, topped the chart with the most significant increase in sales transactions at +32.5%, closely followed by Anchorage and Fayetteville, AR, with increases of +24.9% and +22.0%. Alternatively, markets like New Orleans and Salt Lake City recorded declines.

Pricing Highlights

Pittsburgh experienced the highest median price increase at +15.1%, with other areas like Wichita and Milwaukee following closely behind. On the other hand, Tampa and Baltimore saw minor declines in their median sales prices. This showcases the varying trends within real estate metrics not only nationally but also regionally.

The report underscores the complexity of the current housing market landscape, where varied demand across price tiers and regions continues to create unique challenges and opportunities for both buyers and sellers alike.

RE/MAX, known for its unparalleled global presence in the real estate sector, continues to provide valuable insights and resources for both home buyers and real estate professionals, helping them navigate through these changing dynamics.