Information / Education

Real Estate Round-Up

  • February 2025
  • BY BOB OXNARD, REALTOR®

WILL REAL ESTATE MAKE A REBOUND IN 2025?

A friend recently remarked, “If 2024 were a fish, I would have thrown it back!” It’s clear that last year did not meet her expectations. That’s one of the good things about a new year. It makes a clean slate for expectations. Out with the old and in with the new year. Speaking as a REALTOR®, some of my peers are pointing to the things that made 2024 less than ideal for real estate. One of the big factors creating uncertainty for buyers and sellers was the presidential election. With this now settled, the housing market has already started to rebound.

Some key housing indicators for 2024 include: a decline in the number of home sales, a drop in the median price of existing homes, and an increase in the number of homes available for sale. Despite a rate cut by the Fed, interest rates have remained persistently high. Home insurance costs have surged, and securing coverage has become more difficult. Florida condominium associations are facing rising insurance premiums and more regulations, while higher fees for condominium units are putting downward pressure on condo sale prices.

Some of these deterrents to housing were caused by storm damage resulting from two hurricanes in two years. Some Floridians are rethinking how close to the water they want to live. Homes in areas which are less flood-prone like Whiskey Creek are more attractive to buyers.

The law of supply and demand is at work. This law is one of the biggest reasons that the housing market is poised for a better future. Prices have decreased from the lofty levels they had seen recently. Inventory is high and sales are not keeping pace with the increase. This will continue to put pressure on prices until the market balances. As of early January, according to the MLS, Whiskey Creek had forty-one homes active on the market with five homes pending sale and only twelve sold in the previous four months. At this rate there is a ten-month supply of homes on the market. This indicates a solid buyer’s market that sellers will have to deal with to attract buyers. The best solution is to reduce the listing price.

What will it take to make 2025 a better year for housing in our area? Lower prices and interest rates, improved insurance options, and no hurricanes would certainly help. More winter storms up north could drive more visitors our way, eager to experience why we love living here—the sun, sand, and sea. But then again, maybe it’s just as well if our little slice of paradise remains a hidden gem. After all, now that we’re here, who needs the crowds? We’re just fine, thank you!

If you have any questions or comments about this article or other real estate issues, please contact Bob Oxnard at [email protected].

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