Housing market sees early improvements despite previous year's challenges

Economic indicators continue to shape the understanding of 2024, even as 2025 progresses. The December jobs report showed unexpected strength in the labor market, with employment growth and a reduction in unemployment. Inflation presented a mixed picture; while headline inflation rose due to energy prices, core inflation showed signs of moderation.

The Federal Reserve is not expected to change rates at its January meeting, given the current economic stability. Existing-home sales in December saw an increase compared to the previous year but were insufficient to alter the annual total for 2024, which was notably low.

Mortgage rates have recently been high but dipped below 7% for a 30-year fixed rate. This decrease may boost home sales later in the year. Early data from Realtor.com indicates that home sellers are more active compared to last year, with an increase in active and newly listed homes.

Realtor.com has identified areas of opportunity for first-time homebuyers, primarily in the Northeast and South. However, these buyers may face trade-offs and could benefit from guidance by real estate agents. Additionally, homeowner association fees have become more common and costly according to listings analyzed from 2024.

Detailed reports and housing data are available at realtor.com/research.