2025 Market Update and Forecast

As driven and dedicated agents, the Lysi Bishop Real Estate Team gathers every week to discuss real estate trends, market updates, and other valuable statistics. Our commitment to serving our clients calls us to understand the ever-changing market, allowing us to be informed, reliable resources. We offer decades of experience and expertise in buying and selling homes, but we also pride ourselves on being trusted advisors, bringing research-based knowledge and insight to our clients. 

During this week’s meeting, we discussed pertinent 2024 numbers, and our founder, Lysi Bishop, shared important 2025 projections as well. 

While there was a slowdown in the real estate market over the holidays, this trend is common and predictable. Despite this usual pause, market dynamics show an increase in Ada County’s home sales, pending homes, and active listings when comparing December 2024 to the previous December. Existing home listings in Ada County are up 26.5% year over year, while home sales are up 26.1% in that same time period. We are seeing more homes on the market than last year, which is great news for buyers. And the numbers show that more homes are selling, which is an encouraging statistic for sellers. 

2024 saw slight shifts in home pricing, rising and lowering around 3.6% depending on the time of year. We recognize that timing is everything, which is why we are constantly watching the market to help them decide the best time to buy or sell. 

Despite these dips and rises in home prices throughout the year, Ada County’s existing home sales have an average sales price of $610,417, which is up 3.4% since last year. Digging into those numbers a bit more, we see this number has stayed relatively consistent since the close of 2022, which reflects a stable market in our area. 

So what does this mean? As Lysi explained to the team today, selling and buying in a stable market is the best way to get into and stay invested in real estate. Sellers who aim to become buyers in the same market often feel most secure selling in a stable environment, transferring equity from one home to another. Stability means consistency in the worth of their investment. 

Looking ahead to 2025, economists are optimistic about the real estate market. A recent article published by the National Association for Realtors discussed trends and predictions, noting that mortgage rates may fall slightly and projecting a boost in inventory. Economists say that home prices are anticipated to increase another 3.7%, and economists predict an increase of available homes for purchase hitting the market, with a projected 11.7% uptick in existing for-sale inventory compared year over year.

Economists and experienced industry leaders agree: We will likely see a boost in the early spring market, making this a fantastic time to prepare your home if you’re considering listing. And with the active market ahead, this could also be an ideal time to buy. Inventory is higher than this time last year, and more homes are hitting the market every day. Finding a home now, rather than waiting until later in the year, could mean fewer competing offers.