— 2 — EXECUTIVE SUMMARY Emily Clark, President, Berkshire Hathaway HomeServices Robert Paul Properties 2024 Market Overview: A Year of Resilience and Opportunity The 2024 real estate market across Cape Cod, Greater Boston, South Shore, and South Coast displayed remarkable resilience. Despite higher interest rates and limited inventory, demand for homes remained strong, with buyers and sellers navigating a competitive landscape. Cape Cod continued to captivate buyers, with its unique coastal charm keeping demand high. Limited inventory contributed to steady price growth, while homes sold at a brisk pace. The luxury market was particularly active, with high-end buyers drawn to exclusive waterfront properties. Notably, our firm proudly facilitated record-breaking sales in Osterville and Marion at $22.75 million and $7.5 million respectively, showcasing the ongoing appeal to affluent buyers. Greater Boston remained a standout in the market. Prices rose steadily, supported by strong demand and modest increases in inventory. The city’s reputation as a hub for culture, employment, and education sustained its draw for both local and international buyers. The luxury segment also showed resilience, further cementing Boston’s position as a dynamic and competitive market. The South Shore and South Coast balanced affordability with coastal living, making them highly sought-after regions. Both areas experienced consistent market activity, with properties moving quickly amid ongoing inventory constraints. The South Coast, in particular, continued to attract buyers seeking a blend of affordability and lifestyle benefits. Post-Election Market Dynamics: What It Means for 2025 The year following the presidential election often brings renewed energy to the housing market. Known as the “post-election bump,” this trend is driven by increased consumer confidence as political uncertainties fade. Historically, home sales have risen in 82% of post-election years, underscoring the connection between political clarity and economic activity. For 2025, forecasts align with this historical trend. Projections indicate a rise in national home sales, moving from approximately 4.6 million in 2024 to an estimated 5.2 million. This rebound reflects both the normalization of market activity and a renewed sense of stability among buyers and sellers alike. Implications for Buyers and Sellers For buyers, the post-election period may offer increased inventory and slightly improved affordability due to stabilized mortgage rates. However, the competitive nature of the market is expected to persist, necessitating preparedness and swift decision-making. Sellers can anticipate sustained demand, with the potential for price appreciation. Nevertheless, strategic pricing and property presentation will remain crucial to attract discerning buyers in a market that, while active, is gradually moving toward equilibrium. In summary, the national real estate landscape for 2025 is shaping up to be dynamic, influenced by post-election economic confidence, stable yet elevated mortgage rates, and ongoing inventory challenges. Both buyers and sellers should stay informed and adaptable to navigate the evolving market conditions effectively. What to Expect in 2025: Stability with Opportunities As we step into 2025, the Bay State housing market is expected to follow many of the trends seen in 2024, with slight improvements in certain areas. Economists anticipate a modest increase in the number of homes sold, but inventory will remain limited, keeping competition high among buyers. Mortgage rates are expected to stabilize around 6%, offering buyers some predictability in their financial planning. While affordability challenges may persist, steady demand is expected to keep home prices firm, with moderate appreciation likely in areas of high demand. For sellers, the market remains favorable, particularly for those who take the time to prepare and market their properties strategically. Homes that stand out—whether due to unique features, thoughtful presentation, or effective pricing—will attract strong interest. The luxury market, particularly on Cape Cod and in Greater Boston, is predicted to flourish as high-net-worth buyers continue to seek exclusive and one-of-a-kind properties. Whether you’re buying or selling, success in the coming year will depend on being informed and proactive. Sellers who focus on showcasing their homes effectively and responding to market trends will be well-positioned to achieve strong results. Meanwhile, buyers who come prepared—both financially and strategically—will have the best chance of securing the right property in a competitive market. As we reflect on 2024, the real estate market’s resilience and adaptability have been remarkable. With steady demand and opportunities for both buyers and sellers, 2025 promises to be another dynamic year for Massachusetts’ diverse and thriving housing market.
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