January 2025 Housing Market Trends Report
The housing market in January 2025 showed continuous growth in terms of home listings, with a significant increase in the total number of unsold homes compared to last year. The number of homes being actively listed increased by 24.6% compared to the previous year, marking the 15th consecutive month of growth. Additionally, the total number of unsold homes, including those under contract, rose by 17.1% compared to the previous year.
Home sellers made a return to the market in January, with newly listed homes increasing by 10.8% compared to the previous year. This increase was even more significant when compared to the previous month, up by 37.5%, making it the largest December to January increase in records dating back to January 2020.
Despite the increase in listings, the median price of homes for sale in January was down by 2.2% compared to the previous year, at $400,500. This decrease can be attributed to the increase in smaller homes being listed this year, affecting the median list price. On the other hand, the median list price per square foot saw an increase of 1.2%, signifying continued growth in home values.
Homes spent an average of 73 days on the market in January, making it the slowest January since 2020. This was an increase of five days from the previous year and three days from the previous month. Additionally, the share of listings with price cuts also saw an increase, with 15.6% of sellers cutting prices in January, compared to 14.7% in the previous year.
Realtor.com® data for January suggests an increase in newly listed homes despite recent higher mortgage rates. The increase in listings indicates that more sellers are coming to the market, possibly due to natural turnover and time outweighing the impact of higher rates. Listing prices continued to rise, although the availability of smaller homes has caused the nation’s median list price to be lower than in the previous year.
Across different regions, all four regions saw an increase in active inventory compared to the previous year. The West saw the highest growth in listings at 31.0%, followed by the South at 27.2%, the Midwest at 16.8%, and the Northeast at 7.8%. However, the overall inventory was still lower compared to typical levels seen in 2017-2019.
In conclusion, the housing market trends in January 2025 showed a consistent increase in listings and inventory, with more sellers returning to the market despite challenges such as higher mortgage rates. The real estate market continues to show resilience and growth, with varying trends across different regions in the United States.