December 2024 Market Report

2024 was marked by higher inventory than we have seen in the last four years.

Higher inventory combined with interest rates in the 6 and 7% range, made for a slower market in terms of sales, but not much worse than 2023.

Median and Average pricing are holding steady:

Days on market jumped to 88. This is likely due to many properties being pulled in December for rentals and those remaining the market had been on the market for longer, pulling up that number.

Dollar volume in December was $156m, which isn’t remarkable, but more than December 2023 which was $133m.

Amy’s Analysis:

While average pricing didn’t show any softening in the market, those stats are pulled up by higher priced luxury properties which sold at a good pace in 2024. In 2024, 126 properties over $3m sold. In 2023, only half that number sold at 67. So more higher priced properties selling brings up the average even though there is price softening in some sectors of the market. For example, we are seeing competitive pricing in lower end condos, especially those that can’t get a STR license and/or also have increased HOA fees due to increased insurance premiums. Those buyers have been priced out by HOA fees and high interest rates, without the ability to offset any expenses with STR income.

In my practice, we have seen about a 5% decrease in pricing from the height during the Covid boom of 2020 and 2021.

We don’t expect interest rates to drop too much this year. I predict sales activity to be similar to 2024, and I also think pricing will remain relatively flat with maybe a 2-3% increase this year. If interest rates drop into the 5% range, expect a lot more buyer activity.