What January 2025 Numbers Mean for You: For Movers and Non-Movers
The real estate market is shifting, and whether you’re a homeowner, seller, or buyer, the latest trends can impact your financial future. Interest rates are steadily declining, home values are rising, and inventory is stabilizing—creating unique opportunities for everyone. Here’s what you need to know based on your real estate goals.
Homeowners: Your Property Value is Increasing
If you own a home, your investment is growing! After a small seasonal dip, home values are expected to rise by 5-6% this year. That means a home valued at $295,000 today could soon be worth $312,700 or more. As your equity builds, now is a great time to:
✔ Consider refinancing – If rates continue to drop into the 5% range then refinancing could lower your mortgage payment or help you tap into equity, if you have bought in the last three years or got hit with a highest rate due to credit issues.
✔ Invest in home improvements – Renovations could bring even higher returns if you decide to sell in the future. Do NOT take out a HELOC to make these renovations though.
✔ Monitor your home’s value – Understanding your equity growth can help with long-term financial planning and exposes risks in your portfolio.
If you’re staying put, keeping an eye on your home’s value and mortgage options could save you thousands in the long run.
Sellers: More Buyers, More Competition—List Before the Market Shifts
If you’re thinking about selling, now is an ideal time to list. Interest rates are dropping, which means more buyers will enter the market in the coming months. While this increases demand, it also means sellers will face more competition as more homeowners decide to list. Acting now can give you the advantage of:
✔ Strong demand – Homes are already selling in an average of just 16 days, and motivated buyers are ready to make offers.
✔ Less seller competition—for now – As rates continue dropping, more homeowners may list, increasing supply and giving buyers more choices. Selling before the rush can help your home stand out.
✔ Maximized profits – Home prices are rising, and waiting too long could mean selling in a more balanced market instead of a seller’s market.
Bottom line: Listing now could help you sell faster and at a better price before inventory increases and buyers have more options.
Buyers: Act Now to Avoid Rising Prices
For buyers, falling interest rates are a double-edged sword. While lower rates improve affordability, they also bring in more competition, pushing home prices higher. If rates drop into the 5% range, we could see another home-price surge. The best strategy?
✔ Buy while rates are in the mid-to-low 6% range – This avoids bidding wars and inflated prices if rates hit the 5s.
✔ Get pre-approved now – Pre-approvals last up to six months, allowing you to move quickly before competition heats up.
✔ Secure a realtor now – Buyer agreements can last up to a year, so getting expert guidance early ensures you’re ready when the right home hits the market.
The longer you wait, the more you may end up paying. If home prices rise by 5-6%, that $295,000 home could soon cost $312,700—adding an extra $87+ per month to your mortgage. Getting ahead of the competition now could save you thousands.
What’s Your Next Move? Let’s Talk!
Whether you’re a homeowner looking to refinance, a seller ready to list, or a buyer wanting to make a smart move, now is the time to plan ahead. The market is shifting quickly—let’s connect and discuss your next steps before prices rise and competition grows! Reach out today at 434-944-6982.
Nathan isn’t your average realtor. He brings a unique blend of experience, values, and genuine care to your real estate journey, making it more than just a transaction. He guides clients with integrity, compassion, and a deep understanding of the Lynchburg community. As a realtor, financial coach, and family man, he sees you as more than a client and helps you achieve your long-term goals. Reach out today for a free consultation. Download his free app today by clicking here.