2025 Brings More Optimism for Homebuyers | |
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As the ball drops on New Year’s Eve and 2025 begins, people making the resolution to turn their homebuying dreams into reality will not be alone.
This year, total mortgage origination volume is expected to increase to $2.3 trillion, according to a report from the Mortgage Bankers Association. In 2024, $1.79 trillion was anticipated.
“There’s a lot of economic optimism for 2025. Consumer confidence is the key to home buying,” Aaron Gordon, Guild Mortgage branch manager in Henderson, Nevada, told The Mortgage Note. “As we’ve seen, the entry level has really stalled, but the step-up buyers have maintained some momentum.”
Read more from The Mortgage Note.
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FSBOs Hit All-Time Low as More Sellers Use Agents | |
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For-sale-by-owner transactions hit an all-time low, making up only 6% of all home sales, according to the National Association of Realtors®. This was a 1% decrease from 2023.
Moreover, of those who did sell via FSBO this year, half sold to someone they knew, says NAR’s 2024 Profile of Home Buyers and Sellers.
Accounting for 21% of all home sales in 1985, FSBOs have become less popular in the last 40 years, with numbers staying mostly in single digits since 2010.
One main reason for the decline is that the data shows that FSBOs generally sell for less money. According to NAR, over the last year, the median price for all FSBO sales was $380,000 – significantly lower than the median for agent-assisted sales, which checked in at $435,000.
Read more from the PA Association of Realtors.
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Why Americans Moved in 2024 | |
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In the past year, more Americans moved to be closer to friends and family or to find better affordability, according to the National Association of Realtors®. This is a shift from previous trends, which showed more homeowners moving due to job-related reasons.
However, despite this emerging trend nationwide, many movers in the Northeast remained job-motivated, as they were the region most motivated by their job locations and commutes. Over half of movers to the Northeast said they worked at least partially in the office, and their job influenced their move.
The top drivers for movers to the Northeast were:
- Outdoor space (37%)
- Bigger home needed (36%)
- Better work commute (26%)
- Quieter area (23%)
Read more from the PA Association of Realtors.
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Get the Latest Local Housing Market Data from Long and Foster's Market Conditions Report | |
Existing-Home Sales Elevated 4.8% in November; Post Strongest Year-Over-Year Increase Since June 2021 | |
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Existing-home sales grew in November, according to the National Association of Realtors®. Sales advanced in three major U.S. regions and remained steady in the West. Year-over-year, sales climbed in all four regions.
Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – improved 4.8% from October to a seasonally adjusted annual rate of 4.15 million in November. Year-over-year, sales bounced 6.1% (up from 3.91 million in November 2023).
"Home sales momentum is building," said NAR Chief Economist Lawrence Yun. "More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%."
Read more from The National Association of Realtors.
| Pending Home Sales Moved Up 2.2% in November, Fourth Straight Month of Increases | |
Pending home sales gained 2.2% in November – the fourth consecutive month of increases and the highest level since February 2023 – according to the National Association of REALTORS®. The Midwest, South and West experienced month-over-month gains in transactions, while the Northeast decreased. Year-over-year, contract signings increased in all four U.S. regions, with the West leading the pack.
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – advanced 2.2% to 79.0 in November. Year-over-year, pending transactions improved 6.9%. An index of 100 is equal to the level of contract activity in 2001.
“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” said NAR Chief Economist Lawrence Yun. “Mortgage rates have averaged above 6% for the past 24 months. Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.”
Read more from the National Association of Realtors.
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Year-Over-Year Townhouse Construction Numbers Up | |
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New townhouse construction is up year-over-year, according to the National Association of Home Builders.
During Q3 2024, single-family attached starts totaled 47,000, matching the highest quarterly count for townhouse construction since mid-2006. NAHB notes that over the last four quarters, townhouse construction starts totaled 177,000 homes – 20% higher than the prior four-quarter period (148,000 homes).
In Q3 of this year, the market share of newly-built townhouses was 17.4% of all single-family starts.
For many, the lure of affordability, low maintenance, community amenities, privacy and security draw people to townhouse living. They offer added space compared to an apartment or condo while still avoiding certain costs and responsibilities that come with owning a single-family detached house.
Read more from the PA Association of Realtors.
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6 Interior Design Trends for 2025 | |
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This year saw many interior design trends, from emerging maximalism to nostalgic retro vibes to sustainable spaces. With 2025 close on the horizon, it might be time for out with the old and in with these six new predicted trends from MarthaStewart.com.
1. Big Personalities
Neutral interior design has been popular for years, but it’s possible that 2025 will see more personality, whether it’s through brighter colors, more unique décor or other personal touches. Interior design experts are predicting more people – especially younger people – will seek to tell their own stories through their design choices.
2. Art Beyond the Walls
Art isn’t just for walls! While gallery walls have taken off in recent years, it’s predicted that 2025 will see more artistic designs, like sculptural light fixtures and furniture pieces.
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. | | | | |
