Learn how 2024's real estate trends affect buying and selling in 2025.
The 2024 real estate market in Birmingham was a wild ride. At the start of the year, we saw bidding wars and homes selling quickly. But by the fall, things slowed down. So, what happened and what does it mean for you? Let’s break it down.
What happened in 2024? In early 2024, the market was still moving fast, just like the past few years. There was high demand for homes, but the supply was low. This led to bidding wars, and many homes sold for more than their asking price. As a result, home prices continued to rise.
The impact of rising interest rates. By the third quarter of 2024, interest rates started to climb. When rates hit the 6% to 7% range, buyers were hit hard. Higher rates meant higher mortgage payments, making it tougher for many to afford homes. If you were holding onto a low interest rate from the past few years, moving meant giving up that advantage and paying thousands more in extra costs. This made buyers more cautious and slowed down decision-making.
“If you’re looking to buy or sell in 2025, now is the time to start planning.”
Slow but healthy market. Despite the slowdown, housing activity picked up again in the last few months of the year. Buyers had adjusted to the new interest rates, and the perception that rates might stay high for a while helped them move forward. While home prices didn’t shoot up as they did in previous years, they still rose by about 4.5%, reaching an average of $346,000 by the end of 2024. Compared to 2023, homes took a little longer to sell—36 days on average, up from 31 in 2023—but more homes were listed, giving buyers a little relief.
What does 2025 hold? Looking ahead, there is a chance interest rates could drop in 2025. If that happens, we can expect more buyers to enter the market, which could push prices up again. So, if you’re thinking about buying or selling, now may not be a bad time to make a move.
In 2024, the real estate market remained strong despite some challenges. Homes were still selling, and prices continued to increase. If you’re looking to buy or sell in 2025, now is the time to start planning. Whether you’re buying a home or thinking of selling, I’m here to help. If you have any questions or need advice, you can call or text me at 205-531-2747.
