Welcome to the February 2025 Market Update from Crush City Realty Group! This month, we’re breaking down key insights from the latest Keller Williams Vision Speech and market trends to help buyers, sellers, and agents navigate the current real estate landscape.
Market Overview: Where We Stand
The market remains in a slow recovery, with history showing it typically takes 3–4 years to rebound from a downturn. While many hope for a quick turnaround, experts predict at least two more years of sluggish growth. In fact, today’s market is at its lowest recorded point since 1995—meaning patience and strategy are key.
Opportunities in a Shifting Market
Despite challenges, real estate remains full of opportunities. Success comes by sticking to proven models and focusing on motivated buyers and sellers. Real estate is cyclical—those who understand and adapt to the cycle will come out ahead.
Why Now Is Still a Great Time to Buy
As Gary Keller wisely says, “Don’t wait to buy real estate; buy real estate and give it time.” While appreciation may pause, long-term historical trends show an average 4% annual appreciation, reinforcing the value of investing now rather than waiting for the “perfect” time.
Key Market Trends to Watch:
- Interest Rates: Holding steady around 6.5%, with slight potential shifts but no drastic changes expected.
- Affordability & Equity Growth: Mortgage payments now allocate 32% to interest, compared to 40% in past years, making homeownership slightly more manageable.
- Inventory is Rising: New listings are increasing, which may help balance supply and demand.
First-Time Home Buyer Challenges
The average first-time buyer is now 38 years old, a reflection of increasing financial hurdles. However, as inventory expands and prices stabilize, we anticipate more buyers entering the market.
Preparing for 2025: What Agents & Clients Need to Know
The real estate market remains a contact sport—education, preparation, and action are crucial. Agents should focus on educating clients, helping them understand current conditions, and guiding them toward smart real estate decisions.
Final Takeaway:
Yes, the market is tough, but those who stay informed, stay active, and seize opportunities will succeed. The best time to invest in real estate? Now.
Stay tuned for more updates from Crush City Realty Group!