In this latest market analysis, Ryan Long delves into the Q1 2025 US real estate landscape, offering a wealth of knowledge gleaned from a recent real estate conference and an in-depth review of the current statistics. Early this year, the US has seen a slight increase in home sales, moving from 4.1 million in 2024 to an estimate of 4.2 million in 2025. Despite these figures still being low historically, they highlight the market’s gradual recovery post-pandemic.
One of the most notable trends discussed is the median sales price of homes, which stood at $408,000 in 2024, with projections indicating a steady rise of approximately 3-4% in 2025. This suggests a return to the long-term appreciation trend of around 4% annually, slightly above inflation rates, which have hovered around 2.5%. Such data points are crucial for investors and homeowners alike, offering a glimpse into the future trajectory of home values.
Ryan also touched on the stability of mortgage rates, which currently average around 6-7%, reflecting historical norms but highlighting a decrease from the higher rates seen in 2024. Additionally, the affordability index shows that the median American spends about 32% of their income on mortgage payments, a slight increase over historical averages. This measure, along with data on new home starts and listings with price drops, provides a rounded picture of both challenges and opportunities within the market.
The session concluded with insights into broader economic indicators, such as distressed sales and the percentage of homes underwater, which remain low, suggesting a strong foundation for ongoing market health. Ryan’s presentation not only sheds light on the complexities of the real estate market but also underscores the importance of understanding these dynamics for making informed investment decisions. For those looking to dive deeper into real estate economics, Ryan recommends several resources, emphasizing the value of staying informed in an ever-evolving market landscape.