The housing market experienced a turbulent year in 2024, with a significant dip in interest rates coming late in the year, according to the Cornerstone Realtors Association. While the rate drop provided some relief to potential homebuyers, it was not enough to offset slower sales in the earlier months of the year. As a result, total home sales for 2024 reached 10,210 units—a slight improvement over 2023 but still 26% below long-term averages.

Challenges in the Spring Market

The spring season, traditionally a busy period for real estate, saw sluggish activity that weighed heavily on annual sales figures. Rising interest rates during the first half of the year deterred many prospective buyers, leaving the market stagnant. This initial slump overshadowed the modest recovery that occurred later in the year when rates began to ease.

“As interest rates have begun to trend downward, some homebuyers are taking advantage of the opportunity to enter the market while there is still a good selection of homes available,” noted Nicolas von Bredow, spokesperson for the Cornerstone Realtors Association in the Hamilton-Burlington area. “Although the pace of return has been gradual, the improving rates have sparked renewed interest, and many potential purchasers are starting to feel more confident in making their move.”

Renewed Interest in Homebuying

The decline in interest rates brought a wave of renewed optimism among homebuyers. Many who had been hesitant to purchase earlier in the year began exploring opportunities as borrowing costs became more favorable. This shift in sentiment helped inject some momentum into the market during the latter months of 2024. Buyers looking to capitalize on lower rates found a better selection of homes available, as inventory levels increased throughout the year.

Inventory Gains Across the Market

One of the defining trends of 2024 was the improvement in housing supply. Over 3,000 units were available for most of the year, marking a noticeable uptick in inventory compared to previous years. This increase was evident across all property types and price ranges, including more affordable options.

The growth in inventory offered buyers greater choice, which, in turn, helped stabilize the market. For sellers, however, the increased competition meant adjusting expectations. Properties that once sold quickly during the pandemic-fueled housing boom required more time and strategic pricing to attract buyers.

Impact on Home Prices

Improved supply and changing market dynamics led to a slight decline in home prices. On an annual basis, the average benchmark price fell by nearly 1% in 2024. However, this decrease was relatively modest when viewed in the context of the price surges during the pandemic years.

Despite the recent dip, home prices remained robust compared to pre-pandemic levels. The 2024 average benchmark price was still consistent with 2021 figures and 9% higher than the 2020 annual benchmark price of $651,425. This resilience highlights the underlying strength of the housing market, even in the face of fluctuating interest rates and economic uncertainty.

Long-Term Trends and Market Stability

While 2024 did not mark a full recovery for the housing market, it demonstrated a gradual stabilization following several years of volatility. The easing of interest rates played a crucial role in restoring buyer confidence, though the effects were not immediate. The slower pace of recovery underscores the challenges that the market continues to face as it adjusts to a post-pandemic environment.

For many buyers and sellers, the key takeaway from 2024 was the importance of adaptability. Buyers who entered the market later in the year benefited from improved selection and more favorable borrowing conditions. Sellers, on the other hand, had to navigate a more competitive landscape, emphasizing the need for realistic pricing and strategic marketing.

Looking Ahead

As the market moves into 2025, several questions remain. Will interest rates continue to decline, further boosting buyer activity? How will inventory levels evolve, and what impact will they have on prices? These factors will be critical in shaping the housing market’s trajectory in the coming year.

Despite the uncertainties, the lessons of 2024 provide valuable insights. The combination of improved supply, declining interest rates, and resilient home prices suggests a market that is gradually finding its footing. For buyers, sellers, and industry professionals, the road ahead holds both challenges and opportunities, making it an exciting time to watch the real estate market’s evolution.