It’s officially 2025, and many investors may be waiting on the sidelines for prices to drop. Luckily, 59 out of 204 of the largest markets have seen a decrease in median closing price from December 2023 to December 2024, according to HouseCanary’s market data.
Some recognizable markets that may be good picks for out-of-state investors include:
I wrote an article recently on why North Carolina might be the next boom state, with the majority of its new growth likely to occur in the Raleigh-Durham-Chapel Hill Research Triangle metro.
As an investor, I’m quite happy to see such a large decline in the median sales price in the Raleigh MSA (-12.1%), as I believe home prices will continue to increase in the long run due to the outstanding job growth and solid fundamentals the market has. But please, do your own research before making an investment decision.
And while these markets may have seen a decline in price, other markets have continued to see price increases despite higher inventory.
Days on Market (DOM), Listings Both Increased
Out of the 204 markets analyzed 202 markets have seen an increase in DOM.
This may have to do with the fact that there has been a relative increase in the amount of listings on the market as well. However, as you’ll see, even if some markets saw a decline in total listings, their DOM may have still increased (such as Kansas City, Missouri, and San Jose, California).
There were 58 markets that experienced an increase in DOM or listings, and also saw price declines.
What’s interesting is that out of the 204 markets analyzed, 130 had increases in total listings and DOM and still managed to see price increases.
This is an example that just because inventory rises, prices may not necessarily fall, although it may slow the pace at which they grow.
We’ll keep track of this trend as we analyze next month’s data, so stay tuned.
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.
