Are Home Sales Slowing Down? What this Past January 2025 Housing Market Data Means for You!
Let’s talk about it—the real estate market is shifting, and if you’re planning to buy or sell, you need to know what’s happening. Existing home sales dropped 4.9% in January 2025, but before you start panicking (or celebrating), let’s break down what this actually means for you as a homebuyer, seller, or investor.
Grab your coffee, and let’s get into it! ☕🏡
📉 Home Sales Are Down… But Are They?
It’s true—January saw a 4.9% drop in existing home sales compared to December. But year-over-year, sales actually increased by 2.0%, marking the fourth consecutive annual gain in the housing market.
So, what does that tell us?
✔️ Buyers are still out there—but they’re waiting for the right moment.
✔️ Sellers are still making deals, just at a different pace.
✔️ Seasonal trends are at play—January is typically slower due to winter conditions and post-holiday fatigue.
💡 Translation: The market isn’t crashing. It’s just adjusting.
🏠 Median Home Prices Keep Rising
While sales slowed, home prices continued their steady climb. The median home price hit $396,900 in January, a 4.8% increase from last year.
🔹 What does this mean for buyers? Home values are still appreciating, so waiting too long might not pay off if prices keep rising.
🔹 What does this mean for sellers? If your home is priced right, buyers are willing to pay top dollar.
📦 More Inventory Is Coming… But Is It Enough?
Good news: The housing inventory increased by 3.5%, with 1.18 million homes now on the market.
But here’s the issue—that’s still only a 3.5-month supply at the current sales pace. A balanced market usually has about a 6-month supply.
💡 Translation:
- Buyers still face limited choices, which keeps competition relatively high.
- Sellers still hold leverage, but not as much as during peak bidding wars.
📍 What’s Happening Regionally?
Depending on where you’re looking, your real estate experience could be very different. Here’s how January played out across the U.S.:
✔️ Northeast: Down 5.7% from December, but up 4.2% year-over-year.
✔️ Midwest: No major changes month-over-month, but up 5.3% annually.
✔️ South (Hello, Georgia & South Carolina!): Down 6.2% from December, but steady compared to last year.
✔️ West: Down 7.4% from December, but up 1.4% year-over-year.
💡 Translation: While sales took a seasonal dip, demand is still driving growth over the long term—especially in affordable Southern and Midwestern markets.
💰 Mortgage Rates: The Elephant in the Room
Mortgage rates have been a huge factor in this market shift. Higher interest rates have made buyers more cautious, slowing down demand—but that doesn’t mean buyers have disappeared.
👉 If rates drop, expect more buyers to jump back in fast—and when that happens, home prices may surge again.
🎯 What Should You Do? Buyer vs. Seller Strategy
🏡 If You’re a Buyer:
✅ Get pre-approved before rates shift again.
✅ Negotiate smartly—sellers are still getting good prices, but they’re more open to deals than before.
✅ Look beyond the headlines—just because sales dipped doesn’t mean you can’t find a great opportunity.
🏡 If You’re a Seller:
✅ Price strategically—homes are still selling, but buyers are more price-conscious.
✅ Make sure your home stands out—with fewer sales happening, a well-staged, well-marketed home can attract serious offers.
✅ Act before interest rates shift—a lower rate environment could bring more competition (good for selling) but could also change pricing dynamics.
📌 The Bottom Line
January’s real estate numbers tell us that we’re still in a seller’s market, but buyers are getting more selective. Prices are climbing, inventory is increasing (slowly), and mortgage rates are influencing decision-making across the board.
If you’re thinking about buying or selling in Georgia or South Carolina, now’s the time to make a smart move. At Riverwatch Residential & Commercial, we’ll help you navigate the market like a pro.
📲 Thinking about making a move? Let’s chat! Schedule a Call
📖 Want more market insights? Follow Riverwatch Residential & Commercial for expert real estate tips!
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🎥 Want to Watch This Instead?
This blog is also a video! We break it down for you—no boring numbers, just real talk about what’s happening in the market. Stay tuned for the video embed right here! 🎬






