Looking Forward To A Strong Spring Market

Fall market sales surged more than 20% above 2023 for both houses and condos. This is mostly due to the series of central bank interest rate cuts in the second half. Clearly, buyers are returning to the market in force, and this bodes well for a healthy spring market.

Houses

Prices for houses fell in December, as they typically do during the holiday season. Overall, though, prices during the September-December fall market were about 2% higher than in 2023.

House sales were 25% higher in this year’s fall market than in 2023. Buyers are back off the sidelines and will likely drive the market higher in the spring. Sales did fall in December, but the inventory of houses for sale remained below 3 months’ supply, comfortably in sellers’ market territory.

Condo Apartments

Prices for condos actually increased in December, and were higher than 2023 for the first time since April. This continues the strong uptrend in condo prices since the August low. Clearly condos have turned the corner and are rebounding strongly in response to falling interest rates.  This trend should continue in the spring.

Condo sales improved significantly in this year’s fall market, and were 21% higher than last fall. Similar to houses, condo buyers are back.

Bottom Line

The series of interest rate cuts in the second half of this year are luring house and condo buyers back to the market. Sales for both are up strongly in the fall market. While there is still plenty of uncertainty about the economy and about President Trump’s possible tariffs, it’s likely that the momentum that has started to build in the fall will continue to strengthen in the spring.