Happy New Year!

Hope you had a wonderful holiday season with family & loved ones! We're excited for the New Year and the possibilities that might unfold as we enter into a new season. While real estate sales were historically cool in 2024 and we're told the total number of closed residential properties was the lowest in 30 years, data is pointing to a stronger, healthier sales season for the upcoming 2025 year. Happy New Year!

Barbara & the Ocean to River Properties Team

U.S. Housing Market Gains Momentum: Existing-Home Sales Hit 3-Year High

In November 2024, existing-home sales grew 6.1% year-over-year, the largest annual gain since June 2021, reaching a seasonally adjusted annual rate of 4.15 million, according to the National Association of Realtors (NAR). Sales increased in three out of four U.S. regions, with prices rising in all areas. The median home price climbed 4.7% to $406,100, marking the 17th consecutive month of price growth.

Key regional trends:

Northeast: 8.5% monthly increase; median price $475,500 (+9.9% YoY).
Midwest: 5.3% monthly increase; median price $302,000 (+7.3% YoY).
South: 5.6% monthly increase; median price $361,300 (+2.8% YoY).
West: Stable sales; median price $628,200 (+4.0% YoY).
NAR Chief Economist Lawrence Yun cited job growth, higher housing inventory, and buyer adaptation to mortgage rates of 6–7% as factors driving sales. First-time buyers represented 30% of purchases, and investors accounted for 13%. Inventory decreased 2.9% from October but rose 17.7% year-over-year.

This surge reflects growing momentum in the housing market despite economic challenges.

Brevard Zoo will name its planned aquarium at Port Canaveral after John and Pat Bowen

Brevard Zoo has officially named its upcoming $100 million aquarium project the Bowen Aquarium and Conservation Center, honoring philanthropists John and Pat Bowen of Satellite Beach, whose substantial donations kickstarted and sustained the campaign. The aquarium, to be built at Port Canaveral with construction beginning in 2025, will focus on native wildlife, conservation, and restoration of the Indian River Lagoon and surrounding ecosystems. It will include critical care facilities for sea turtles and manatees, attract over 525,000 visitors annually, and create 1,200 jobs. The Bowens, long-time zoo supporters, have contributed millions to the project, with zoo officials calling them "founding donors" and celebrating their legacy through the naming.

Navigating 2025: Optimism and Challenges Ahead for the Real Estate Market

With the Federal Reserve projecting rate cuts and inflation nearing 2 percent, experts are cautiously optimistic about a 2025 rebound. Predictions include mortgage rates stabilizing around 6 percent, increased inventory through homeowner activity, and medium-density building. While these trends may benefit homeowners and cash buyers, first-time buyers continue to face affordability challenges. Industry leaders, including NAR economists and housing experts, highlight the importance of affordability improvements to sustain growth and prevent a "nation of renters."

Uncertainties linger, driven by factors like high government spending, affordability hurdles, and potential tariff policies, which could impact housing starts and construction costs. Despite these challenges, panelists forecast a 5 percent increase in existing home sales and 10 percent growth in new home sales for 2025, with spring as a potential turning point. Hot markets in the South and Midwest, including Charlotte and San Antonio, show promise for strong growth, bolstered by job creation and favorable migration trends. Industry leaders remain optimistic but acknowledge that global economic headwinds and timing will be critical to achieving a robust rebound.