January 2025 Housing Market Report

The housing market is kicking off 2025 with some noticeable changes that could set the tone for the year ahead. Here’s a look at the latest trends and updates from Zillow, Redfin, the National Association of Realtors (NAR), and housing expert Steven Thomas.

Latest Insights from Zillow

Zillow reports that more homes are being listed on private networks instead of the MLS (Multiple Listing Service). These private listings are only visible to specific brokerages and their clients. A recent survey showed that most sellers aren’t clear on the difference between MLS and private listings. While only 39% of all sellers reported being steered toward private listings, this jumps to 63% for those who sold a home in the last five years.

On a brighter note, housing inventory is starting to recover. Nearly 1 million homes were on the market in December 2024—the highest for December since 2019. Although inventory is still 25% below pre-pandemic levels, it’s an improvement from the record lows of 2022. Rising inventory means prices might not climb as quickly this year, which is good news for buyers. Zillow’s Market Heat Index even shows a balanced market between buyers and sellers for the first time since 2019.

Home values across the country are a mixed bag. The average home value is $358,461. Some cities, like San Jose (up 7.9%) and New York (up 6.4%), saw significant growth, but other places, like Austin (down 3.2%) and Tampa (down 2.5%), experienced declines. Mortgage payments are also climbing, now averaging $1,844 monthly, up 109% compared to pre-pandemic levels.

Redfin’s Take on the Market

President Trump’s recent executive order on housing affordability has already had a small impact, nudging mortgage rates down slightly. While more details about the order are expected later, this small change could help ease affordability concerns for buyers.

Redfin also noted that for the first time since 2022, home prices rose in all 50 major metro areas year-over-year. The median sale price now sits at $427,670, up 6.34% from last year. Despite higher prices, new listings have decreased slightly, showing that sellers remain cautious.

In Los Angeles, wildfires have shaken up the housing market. Over 6,300 homes were destroyed or damaged by the Palisades and Eaton fires, leading to intense competition for rentals. Rental bidding wars are becoming the norm, with some leases doubling in price. Many displaced homeowners are choosing to rent their properties, further limiting options. These challenges highlight the difficulty of navigating housing in disaster-prone areas.

What the National Association of Realtors (NAR) Says

The National Association of Realtors has praised President Trump’s efforts to tackle housing affordability and inventory issues. The organization has long pushed for policies that increase housing supply and make homeownership more accessible. NAR is working closely with the administration to help put these plans into action, with the goal of creating more opportunities for first-time buyers and families.

Steven Thomas’ Perspective

Steven Thomas of Reports on Housing described the start of 2025 as slow, with more available homes, but less demand. High mortgage rates, which have hovered above 7%, remain a significant hurdle for many buyers.

Thomas compared the market to a car in winter—cold and slow to warm up. He explained that the housing market always starts sluggishly in January as buyers and sellers shake off the holiday season. By the end of the month, things typically pick up. This year’s higher inventory levels give buyers more options, but affordability is still a challenge.

Why Nuvision Provides These Reports

We know the housing market can feel overwhelming, and that’s why we’re here to help. These monthly reports give you the information you need to make smarter decisions about buying or selling a home. At Nuvision, we’re committed to supporting you every step of the way as you work toward building the life you deserve.