Category: Lifestyle

As we bid farewell to another year and welcome the dawn of the next, let’s contemplate what we left behind and what lies ahead.

LOOKING BACK

2024 was a whirlwind year, with hurricanes, floods, global conflicts, an election, increases in gas prices, mortgage rates
and the cost of insurance. In spite of this, many of our clients are benefiting from increased prices, with household equity at a record high. There has been an increase in wealth across the country, to the tune of $35 trillion, according to Lawrence Yun, the chief economist for NAR. Other positive factors impacting the real estate market include the stock market acceleration, continued post-pandemic job growth, and the migration of U.S. residents moving to states with less taxation and lower crime rates. Here in Hilton Head prices have remained strong, in spite of inventory increases. The number of sales of single family homes this year, versus last, has increased.

LOOKING AHEAD

The new year always brings a sense of excitement and new beginnings. We see much poised to change in the US. and across the world in 2025, with new and re-elected world leaders bringing policy ideas that will trickle into many aspects of life, including our housing markets. Financing costs will continue to play a significant role and an expected reduction in rates will serve to unlock the market in many locations. Forecasts from Fannie Mae, the Mortgage Bankers Association, NAR, and Wells Fargo show an expected gradual decline in mortgage rates. There are differing opinions as to the rate drop. No one has a crystal ball. Nevertheless, people who don’t need to move will continue to push back on trading their current low rates for those twice the price. We advise our clients, based on many years of experience, to make a moving decision when it is right for your own personal reasons and goals, not based on factors you can’t control.

LUXURY MARKET TRENDS

Tax policies will continue to play an important role among the wealthy, as those looking to acquire homes in multiple locations expect tax breaks and a location where they can easily handle their global business. There will also be a generational shift happening in the luxury market during this decade, with $90 trillion in the U.S. poised to change hands from the baby boomers to millennials and Gen Zers. It’s a new game, as they are making different decisions than their parents about where and how they spend their money. In the years to come we expect their priorities to reshape the demands put on luxury real estate across the world. We are starting to see some of that now.

BOTTOM LINE

Whether you’re thinking of buying or selling a home in 2025, you can be optimistic. Being informed and looking at projections on mortgage rates, home sales, and prices will give you an early glimpse as to what to expect. As Sea Pines experts, we focus on our hyper-local market when discussing how these forecasts could impact your plans and market timing. Call us for a complimentary consultation and let us guide you toward making the right decision. It is never too early to start the process and we are here to support you every step of the way!