With Q4 2024 coming to a close and the holidays nearly upon us, the real estate market around the region remains nearly as frosty as the weather. That’s not to say things won’t heat up before winter begins to thaw, though.
The driving factor within the market right now is inventory, which is comparatively lower than historical averages this season. Still one of the most desirable suburban regions anywhere on the East Coast, the Main Line area typically has steady buyer interest.
This conundrum does presently favor sellers, but the current high cost of moving and interest rates further complicate the matter. Hovering at 7% for a conventional 30-year mortgage, the effect is noticeable on both sides of the market.
This means sellers might have an easier time selling their home for a typically higher price, though some are hesitating to list their home due to the aforementioned factors of moving fees and interest rates.
Most importantly for buyers, Carly Simmons, a former BOML winner and realtor for Patterson-Schwartz Real Estate, says, “Sellers are less likely to offer any sort of concessions when they have multiple offers on their property. This means, if your budget is tight and you don’t have the cash to do major repairs, you may want to think twice before waiving your inspections just to come out on top.”
Winter Nuggets
Though this may seem gloomy, there is certainly light at the end of the tunnel. Notably, home sales have increased the year following an election since 1992. The Gary Mercer Team of Keller Williams Realty believes that trend will continue into 2025. They also notice some pros for buyers during this lull in the market.
Chiefly, many tend to halt their search during the holidays. This means buyers who are still motivated during this time of the season will find less competition. Typically, sellers who list at this time of year are also more motivated to close a deal. Whether that’s due to the holidays or not, it’s something to keep in mind during negotiations. Finally, the Gary Mercer team believes home prices will rise faster than inflation at the current rate.
“Experts predict that if you purchased a $450,000 home in 2024, you could potentially gain over $90,000 in household wealth within the next five years,” they explain.
There’s a myth among buyers that having your offer accepted on a house is as simple as making the highest bid. In reality, there are a multitude of other factors at play. Having the right real estate agent and lender is of course important, but Simmons brings up another vital factor.
“Timing is also everything! If you know you found the right home, do not wait! Make your offer right away. Also, if you can beat the market rush, which usually starts in March and lasts through September, you may also have a better chance to purchase with a little less competition,” she says.
It’s a simple but important adage that nervous buyers often forget. Don’t waste too much time deliberating, and make sure you beat your competitors to the table.
Predictions for 2025
As the calendar turns to spring, Simmons believes the market will slowly but surely begin to balance. ” I hear whispers of lower interest rates coming, but one should remember to ‘date the rate and marry the house.’ If sellers adjust to the idea of rates remaining at a higher number, they may be more willing to sell their home, leading to an increase in inventory.”
If this prediction does come true, Main Liners can expect to see increased price stability on the real estate market. Furthermore, inventory and supply should increase with lower interest rates and the potential post-election year boom, making 2025 a potential banner year around the region.
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