Gains in Home Sales Offer Hopeful Sign for 2025 | |
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Home sales are making a notable turn, posting the largest year-over-year increase in more than three years. Existing-home sales—completed transactions that include single-family homes, townhomes, condos and co-ops—jumped 9.3% annually in December and were up 2.2% month-over-month, the National Association of REALTORS® reported Friday. The increase is offering hope that the housing market can finally put 2024 to rest—a year marked by the lowest level for existing-home sales in nearly 30 years.
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” says NAR Chief Economist Lawrence Yun. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months.” Yun points to recent job and wage gains, along with a rising number of homes for sale, as helping fuel the recent sales increases.
Read more from NAR's Realtor Magazine.
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The Mortgage Lock-In Effect Is Waning in Some Segments of the Market | |
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Some segments of the U.S. residential real estate market started to thaw in January after December’s deep freeze, with a growing number of homeowners listing their homes for sale in a sign that the stubborn “lock-in” effect is finally beginning to ease.
The “lock-in effect” refers to homeowners’ reluctance to sell because they have a low mortgage rate and would have to take out a mortgage at a higher rate when they buy a new home.
Even though the 30-year fixed mortgage rates continue to be high, hovering at just below 7%, homeowners seem to have accepted this new normal and are not letting it stop them.
“While rates remain elevated, it is possible that we might be seeing that chiseling effect starting as sellers may grow tired of waiting for significant changes in rates,” says Realtor.com® Chief Economist Danielle Hale in her January monthly housing report.
Read more from Realtor.com.
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Inventory and Home Sales to Rise in 2025, Says NAR Chief Economist Dr. Yun | |
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The National Association of Realtors® Chief Economist Dr. Lawrence Yun discussed his real estate forecast for the year during PAR’s webinar “Economic Issues and Home Sale Trends,” which included predictions on inventory, home sales, mortgage rates and more for this year.
Net Worth for Owners Increases
To start, Dr. Yun noted the overall increase of net worth for homeowners and the gap between homeowner wealth and renter wealth. In 2022, the median net worth of homeowners was $396,200, compared to that of renters at only $10,400. Dr. Yun estimated that 2024 data will show $415,000 for homeowners and $10,000 for renters.
“This shows the drastic difference between homeowners and renters in terms of wealth acquired over the years,” he said, encouraging Realtors® to share this data with potential homebuyers and first-time buyers.
Read more from the PA Association of Realtors.
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Townhomes Are Taking Off—Can They Become the New Starter Home? | |
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Townhomes are taking off as available land for new-construction homes becomes scarce and buyers look for more affordable options.
But townhomes are not just about affordability. Today, homebuyers are also drawn to the low-maintenance lifestyle these types of homes offer, according to Melissa Cervin, vice president of marketing at Lombardo Homes.
“This shift reflects a growing demand for low-maintenance living across a broader demographic,” says Cervin. “They value the convenience of minimized responsibilities such as yard work and snow removal, which provides greater freedom and flexibility.”
In suburban areas, where prices for single-family homes are rising, townhomes are becoming especially popular. Lombardo Homes has also seen an increase in demand for its attached townhome communities.
Read more from Realtor.com.
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More Single-Parent Households Reaching Homeownership | |
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While the overall composition of family households remains largely unchanged in recent years, homeownership rates have shifted slightly across different family households, according to the National Association of Home Builders.
The homeownership rate for all family households except for those married without children increased from 2012 to 2022.
Multigenerational household homeownership increased 4.9 percentage points, rising from 69% in 2012 to 74% in 2022. Additionally, homeownership for households married with children went from 73% to 78%.
However, single-parent households saw the greatest increase in homeownership over the past 10 years. The group with significantly lower homeownership rates than any other group, single-parent homeownership increased from 35% in 2012 to 41% in 2022.
Read more from the PA Association of Realtors.
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Pennsylvania Third Best State to Raise a Family | |
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The Keystone State was named the third best state to raise a family by Consumer Affairs, based on the state’s impressive public education, safety and pediatric health care offerings.
To find the best states for raising families, Consumer Affairs analyzed each state (and Washington, D.C.) across five weighted categories: affordability, safety, pediatric health care and quality of life.
Pennsylvania ranked:
- 19th in the annual cost of raising a child, including expenses like food, rent, childcare and tax credits
- 10th in safety, the category analyzing violent crime, property crime, driving safety, public safety and climate safety
- 5th in education, which was based on K-12 performance, school funding and resources, higher education quality and school safety
Read more from the PA Association of Realtors.
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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the State of DE, the Florida Office of Financial Regulation and MD Mortgage Lender #23004. NMLS #128570. | | | | |
