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New Year Brings More Inventory to the Market
The real estate market is kicking off 2025 with a promising shift in seller activity, as newly listed homes saw a 37.5% increase month-over-month, according to the Realtor.com January Monthly Housing Report. Despite the challenges posed by rising mortgage rates, this increase suggests that more sellers are stepping into the market. Out of the top 50 metros, Sacramento (+31.7%), Phoenix (+27.3%), and Seattle (+24.7%) experienced the highest year-over-year increase in newly listed homes.
Seller Activity on the Rise
Danielle Hale, chief economist at Realtor.com, notes that this shift may indicate a turning point in the ongoing standoff between buyers and sellers. "The uptick is likely due to some residual benefit from fall's lower mortgage rates, which could fade. But drivers such as the need for families to adapt to life changes and the easing of the lock-in effect could bring more movement from sellers by year’s end."
New listings in January 2025 were 10.8% higher than the previous year, marking the highest January level since 2021. Additionally, the share of mortgage holders with a rate under 6% fell to 83%, down from 88% in 2024, a trend that is expected to continue throughout the year.
Market Inventory Grows
For the 15th consecutive month, annual inventory levels have risen, with 24.6% more homes actively listed in January compared to the same time in 2024. The most significant year-over-year increases in active listings were seen in Denver (+54.8%), Las Vegas (+49.4%), and Tucson (+45.0%). Meanwhile, inventory growth was lowest in New York (+0.3%), Hartford, Conn. (+1.8%), and Milwaukee, Wis. (+5.0%).
Sellers Cutting Prices
As listing activity increases, sellers are adjusting their prices to attract buyers. In January 2025, 15.6% of home sellers reduced their asking prices, up from 14.7% in January 2024. Florida remains a key player in price reductions, with three of the top five metro areas having the highest share of price cuts:
Jacksonville: 24.3%
Tampa: 24.8%
Orlando: 22.3%
Other top markets with price reductions included Phoenix, AZ (25.5%) and Portland, OR (22.1%).
Regional Market Trends
Inventory levels continue to recover across all regions, though some areas are progressing faster than others. The South (+27.2%) and West (+31.0%) saw the most significant gains, while the Midwest (+16.8%) and Northeast (+7.8%) lagged behind. Compared to pre-pandemic levels (2017-2019), the inventory gap remains widest in the Midwest (-43.6%) and Northeast (-58.1%), whereas the South and West have nearly closed the gap at -10.0% and -13.3%, respectively.
Among the top 50 metros, Denver (+54.8%), Las Vegas (+49.4%), and Tucson (+45.0%) led in inventory growth this January.
Source: Realtor.com
What This Means for Buyers and Sellers on 30A
With inventory rising and price reductions becoming more common, buyers have more opportunities and negotiating power than they did in the past two years. Sellers, on the other hand, need to price their homes competitively and present them well to attract serious buyers.
If you're considering buying or selling property along Scenic 30A, now is the time to connect with our expert team. With years of experience navigating the 30A and surrounding real estate market, we provide the insights and strategy needed to succeed in today's shifting landscape.
Looking to buy or sell along 30A? Contact our team today!
